SECTION IX. Marine Casualties and Emergencies.

Chapter 3. Reimbursement of Losses Caused by Collision of Vessels.

Clause 296. Application of Law to Collision of Vessels.

The relationships connected with reimbursement of losses at collision of vessels within the internal waters or in a territorial sea shall be regulated by the Law of the state where the collision occurred. If the collision occurred in the open sea and the ensuing dispute is considered in Ukraine, the rules of Clauses 297-304 shall apply.

If all collided vessels fly the same flag and if the interests of the third party are not involved, the Law of the flag state of said vessel shall apply irrespective of the place where said collision occurred.

Clause 297. Scope of Application.

The rules of this Chapter shall apply to collisions at sea or other waters of sea vessels as well as sea vessels and inland trade vessels.

As used in this Chapter, a collision of vessels shall be equated with the cases when the losses are incurred by one vessel to the other or to the persons, cargo or other property located on board, by a performance or non-performance of a maneuver or by a non-observance of navigation rules even if no physical contact between the vessels took place.

No rule in this Chapter shall affect the liability of any party/person stipulated by any agreement as well as the right of any person to limit the liability as determined by this Code.

Clause 298. Consequences of Collision in Absence of Fault.

In case a collision occurred accidentally or due to the natural calamity (the Act of God) as well as when it is impossible to determine collision causes, the losses shall have to be borne by the party who suffered them (the victim).

This rule shall apply as well if the vessels or one of them were anchored at the moment of collision or were secured in any other way.

Clause 299. Collision Caused by One Vessel.

If a collision was caused by incorrect action or omissions of one of the vessels, the losses shall be reimbursed by the party who is to blame.

Clause 300. Collision Caused by All Collided Vessels.

If a collision was caused by the fault of all collided vessels, the liability of each party shall be established in proportion to a degree of fault. If it is impossible to determine the fault of each of the parties, the liability shall be distributed among them equally.

Clause 301. Fault of Vessel in Collision.

Neither of the vessels participating in the collision shall be assumed guilty until her fault is proven.

Clause 302. Joint and Several Liability.

In the instances mentioned in Clause 300 of this Code the Shipowners shall bear joint and several liabilities to the third parties for losses inflicted by death or injury to human health. In so doing, the Shipowner who has paid a sum greater than his due shall have a right to claim reimbursement from the other Shipowners.

Clause 303. Collision Caused by Pilot's Fault.

The liability stipulated by Clauses 299,300 and 302 of this Code shall also ensue in that case when the collision occurred because of the pilot's fault or the fault of Vessel Traffic Control Service.