The parties may apply to the maritime court with jurisdiction for the establishment of a limitation fund for maritime claims liability. The maritime court with jurisdiction includes the maritime court at the place where the accident occurred, the place where the contract was performed or the place where the ship was arrested. An application for the establishment of a liability limitation fund may be made before prosecution or litigation, but it must be made before the judgment of first instance is made. The applicant includes the shipowner, charterer, operator, salvor and insurer. The limitation fund of maritime claims liability includes personal injury liability fund and property damage liability fund, which refers to the deposit required by the person responsible for limiting maritime claims liability to be set up in a court with jurisdiction to ensure the repayment of limited debts within the scope of liability limitation. After the court hears the case, if it is determined that the responsible person should not be liable, the limitation fund for maritime claims liability shall be returned to the responsible person.

Legal objectivity:

Article 101 of the Special Maritime Procedure Law of People's Republic of China (PRC), if the shipowner, charterer, operator, salvor and insurer apply for limitation of liability according to law after a maritime accident, they may apply to the maritime court for the establishment of a limitation fund for liability for maritime claims. Where a ship causes oil pollution damage, the shipowner, liability insurer or other person providing financial guarantee shall set up a limitation fund for maritime claims for oil pollution damage to the maritime court in order to obtain the right of limitation of liability stipulated by law. An application for the establishment of a liability limitation fund may be filed before prosecution or litigation, but it shall be filed before the judgment of first instance is made at the latest.