Noncontractual liability is liability for damages caused by a civil tort and arises when the assumptions specified by law are met, regardless of the will of the parties. Noncontractual liability of ship owners and ship operators in inland navigation refers to the liability for damages that are not provided for in the contract, caused by the ship to persons and things outside the ship, to enviroment in the internal waters of the Republic of Croatia, and includes damages caused by ship collisions and nuclear damage. Inland navigation is navigation that is carried out on internal waters, i.e. on stagnant and flowing waters such as rivers, canals and lakes, except for the rivers of the Adriatic basin up to the limit to which they are navigable from the sea side. Noncontractual liability of shipowners in inland navigation is regulated primarily by the Inland Water Navigation and Ports Act and the provisions of the Maritime Code are applied secondarily to all issues not regulated by that Act. In oreder to insure the risks in shipping business, a limitation of the shipowner's liability for all claims arising from a single event was introduced. As the Republic of Croatia has not ratified the Strasbourg Convention on the Liability of the Vessel Owners in Inland Navigation from 2012, and the Inland Water Navigation and Ports Act does not contain provisions on the general limitations of liability of shipowners, the Maritime Code applies to the limitation of liability in inland navigation in the Republic of Croatia, aligned with the Convention on the Limitation of Liability for Maritime Claims from 1976, which was amended by the LLMC Protocol from 1996 and the Resolution from 2012. The Institute of Limitation of Liability was established with the intention of protecting the shipowner. Since the risks of the shipping venture are so great, many shipowner's businesses would fail in the absence of liability limit, which would lead to a drop in competitivness in the shipping business.