An Evaluation of the Shipowner’s Liability Challenges arising out of Autonomous and Remote-Controlled Vessels: Are these new issues covered under P&I insurance?

Abstract

Research questions: I: Which are the new shipowner’s liability challenges arising out of autonomous and remote-controlled vessels? II: Are these new issues covered under P&I Insurance? Particularly, under the statutes of Gard P&I Club. III: If not, which amendments or clarifications would be necessary to provide coverage to the new matters? Purpose: The aim of the project is to analyze the most relevant shipowner’s liability challenges that may arise from remote-controlled and fully autonomous vessels and to determine whether the analysed liability concerns are covered by the conditions of Gard P&I Club. Findings: The main findings of this study show that the technical development introduced in fully autonomous and remote-controlled vessels does not involve relevant changes concerning shipowner’s own fault and strict liability regimes neither does cargo damage liability regime. Concerning vicarious liability, the author found that remote controllers and the autonomous decision-making software could be included within the scope of Section 151 MC. Regarding collision liability, the key point is whether in autonomous vessels, a wrong navigational decision taken by the software triggers shipowner’s liability under Section 161 MC, and the conclusion is affirmative. However, if there is a failure in the system that could not have been prevented, no fault shall be deemed to exist, therefore, no liability is triggered. In relation to P&I insurance coverage, the principal amendment is concerning the definition of crew and the inclusion of liability scenarios adapted to remote controllers.