Liability for Collision Damages
clash
Liability for Collision Damages: Legal Definitions and Types
In maritime trade, collisions between ships have complex technical and legal consequences. A collisionis a maritime accident that occurs when two ships come into contact with each other at sea or inland waters, and usually results in material damage, loss of life, or environmental damage.
Which party is responsible for bearing the damage after a collision depends on the degree of fault. Articles 1290–1301 of the Turkish Commercial Code (TTK) regulate the types of collisions and the principles of liability in detail.
Below are the main types of liability for collision damages and their legal explanations.
1. Flawless Collision (Turkish Commercial Code Article 1296)
Definition
A perfect collision is one in which a collision between two ships occurs due to an unforeseen and unavoidable cause, without fault on the part of either party.
Example Cases:
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Sudden and severe weather events (storm, hurricane, dense fog)
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Extraordinary and unexpected changes in ocean currents
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Simultaneous technical failures on both ships (e.g., rudder lock-up)
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A collision caused by a third vessel or element
Legal Consequences
In a faultless collision, the parties bear their own losses.
Neither party can claim compensation from the other.
However, different insurance provisions may apply in cases of loss of life, injury, or damage to cargo.
2. Collision Due to the Fault of One Party (Turkish Commercial Code, Article 1296/1)
Definition
If the collision occurred solely due to the fault of one ship , the at-fault party shall be liable for the entire damage .
Circumstances that fall under the scope of fault:
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Navigation or maneuvering error (failure to comply with COLREG rules)
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Insufficient surveillance or radar tracking
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Speeding unnecessarily or following an incorrect route in a narrow channel
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Failure to give warning signals (sound/light)
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Unnecessary maneuvering in dangerous weather conditions
Legal Consequences
The negligent ship owner shall compensate the other vessel for all property damage, cargo damage, economic losses resulting from voyage delays, and, if applicable, environmental damage.
This liability Article 1061 of the Turkish Commercial Code , but this limitation is removed in cases of intent or gross negligence.
3. Collision Due to Joint Fault (Turkish Commercial Code Article 1297)
Definition
If the collision occurred due to the combined fault of both vessels , the damages shall be shared between the parties according to their respective degrees of fault
Example:
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Both ships exceeded the safe speed limit in foggy weather
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Failure of both parties to comply with traffic separation lane (TSS) rules
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Failure to operate navigation lights and absence of a lookout during night navigation
Legal Consequences
Each party shall compensate the other for damages in proportion to their respective degrees of fault.
If the degrees of fault cannot be determined, the damages equally (Turkish Commercial Code, Article 1298).
Example Sharing:
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Ship's A defect rate: 70%
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Ship B's fault rate is 30%.
In this case, while ship A bears its own losses, ship A compensates ship B for 70% of the damages, and ship B pays ship A for 30% of the damages.
4. Comparison by Analogy (Turkish Commercial Code Article 1300)
Definition
A collision is a situation where there is no physical contact, but the maneuvering or movement of one ship causes damage to another .
Example Cases:
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A ship suddenly changing course and forcing another ship into shallow waters
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By passing too close, the wave action caused the mooring ropes of the other ship to break
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Causing a ship anchored in the harbor to collide with the shore due to a maneuvering error
Legal Consequences
In a comparative collision, the rules of collision apply even if there is no physical contact . The party at fault compensates the other vessel for the damage it has suffered in proportion to their degree of fault.
5. Evidence and Proof in Conflict Cases
The following evidence is important for determining fault and liability in collision incidents:
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Captain's Logbook
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Radar, AIS, GPS records
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Weather and sea condition reports
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Witness statements
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Port, coast guard and VTS records
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Photo and video recordings
The burden of proof of fault rests with the party claiming compensation.
6. Insurance and Liability
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The material and non-material damages resulting from collisions can often amount to millions of dollars. Therefore, it is critically important for both shipowners and cargo owners to secure themselves against collision risks with marine insurance
The types of insurance covering collision damages in maritime transport, the scope of legal liability, and the conditions under which the insurance becomes active are explained in detail below.
6.1. Collision Liability Clause (RDC)
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This is a clause found in Hull & Machinery insurance policies
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The insurance covers damage caused by a ship to another ship or its cargo due to a collision
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It is commonly known as the "Running Down Clause" (RDC).
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The coverage will be equal to the percentage specified in the policy (e.g., 3/4% coverage clause).
6.2. Protection & Indemnity Clubs
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These are mutual insurance clubs that cover the shipowner's liabilities to third parties .
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It covers loss of life, injury, environmental pollution , and damage to structures such as ports, docks, and breakwaters caused by collisions
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P&I clubs may also pay the difference for certain collision damages not covered by H&M insurance.
6.3. Cargo Insurance
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Damage to cargo resulting from a collision is covered by cargo insurance.
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If the collision is deemed a general average, the contribution payable by the cargo owner may also be covered by this insurance.
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However, the insurance policy must explicitly state "general average coverage".
6.4. Conditions Required for the Insurance to Become Activated
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Policy Validity: The insurance policy must not have expired as of the date of the incident.
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Coverage Scope: Collision event must be included within the policy terms.
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Fault Determination: The insurer will make a payment taking into account the fault rate of the collision.
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Claim Notification: The incident must be reported to the insurer in writing as soon as possible.
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Submission of Documents: Captain's report, radar/AIS records, port records, photographs, and witness statements.
6.5. Gross Negligence and Intent
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Article 1446 of the Turkish Commercial Code , collision damage resulting from the insured's intentional or grossly negligent act is excluded from insurance coverage.
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For example, operating a vessel while intoxicated, a clear violation of COLREG regulations, may prevent insurance payment.
6.6. Relationship between Insurance and Liability
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Insurance of the at-fault party guarantees the compensation to be paid to the other party.
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In a collision caused by mutual fault, each party pays compensation in proportion to their degree of fault; this amount may be covered by the insurer.
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Insurance generally does not cover faultless collisions because there is no liability for damages; however, the policy may be used to cover damage to one's own vessel or cargo.
6.7. Case Study
A container ship makes a maneuvering error while leaving the port and collides with another cargo ship:
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Damage: 12 million USD (ship + cargo + port structures)
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Fault rate: 100% on the crashing ship
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H&M insurance: Pays $8 million (as per 3/4 collision clause)
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The remaining 4 million USD will be covered by the P&I club.
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The losses incurred by cargo owners are compensated through cargo insurance.
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7. Conclusion
Liability for collision damages is determined according to the nature of the fault involved in the incident.
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In a perfect clash, the parties bear their own losses.
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one party is at fault , that party shall compensate for all damages.
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In collisions where both parties are at fault, the damages are shared according to the degree of fault.
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By analogy, in a collision, the at-fault party is liable even if there is no physical contact.
Therefore, in collision cases, accurately determining the fault nature and collecting all evidence completely are of crucial importance in the legal process.
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