Laws of Salvage in Marine Insurance: The 10 Must know facts

The laws of salvage in marine insurance differ from one country to another. The maritime industry is governed by certain laws which are created both by international bodies as well as specific nations. Certain requirements must be satisfied for a claim of salvage to be valid. Salvage activity is governed by maritime law, which has been established for many years and covers complex legal issues.

Get right expert advice

Hassle-free policy

Speedy Claims

Fast-track your search with instant quotes from prominent insurers

Insure Your Goods in Transit - ₹10 Lakh Cover at ₹591⁺ only!

Instant policy copy

All commodities available

Single transit and annual covers

Insure Your Goods in Transit - ₹10 Lakh Cover at ₹591⁺ only!

Instant policy copy

All commodities available

Single transit and annual covers

Mobile number

We don't spam

Get Updates on WhatsApp

Check Your Premium Now

Fast-track your search with instant quotes from prominent insurers

Expert advice

Buy right

Instant policy

Quick & Hassle free

Dedicated team

Speedy Claims

Defining Laws of Salvage in Marine Insurance

The law of salvage in marine insurance states that anyone who helps rescue or recovers another person’s ship or cargo that is in danger at sea is entitled to receive compensation.

10 Must-Know basics about Laws of salvage in marine insurance:

The 10 things that you must know about the maritime law of salvage under marine insurance are explained below:

Familiarity with various marine salvage types and the elements involved with them:

The most important aspect that a player in the maritime industry must know about the law of salvage in marine insurance is the various laws and rules. Each location will require a unique approach to recover the ship in the best possible manner. Depending on the type of vessel damage, and other factors, various methods must be used in salvage law under marine insurance to compensate the loss to the owner.
Operators might not ask to rescue the entire ship, just specific components of it

The whole vessel may not be rescued if an incident poses threat to the contents of the ship, if people are involved, or harm the environment. Depending on the feasibility of rescuing the damaged vessel, it can be chosen to only recover specific valuable components.
Situations deemed to be salvageable must meet a certain criterion

The law of salvage in marine insurance may require the below criteria for a given incident to qualify as a maritime salvage act:
- Salvaged property must be either the ship or the vessel, the cargo or the payable freight.
- The mentioned property must be in actual danger.
- The salvor is legally required to accomplish a certain level of success to be compensated for the damage.
The award and contractual payment made to the salvor are subject to specific criteria.

To safeguard payments or compensation to the salvor, certain conditions must be met under the rules and Articles 13 and 14 of the IMO Convention.
Attempts to protect and safeguard the environment are given special emphasis.

A salvor will be given a special award if he helps in rescuing a vessel that carries toxic materials which may harm the environment
Foreign military warships and submarines are not included in salvage.

Foreign navy warships and submarines can lend aid to other vessels, but they can't be rescued or salvaged under any circumstances.
Some coastal platforms and installations are not covered by the IMO Convention.

The IMO Convention covers the majority of maritime salvage of ships and other vessels but excludes offshore buildings such as boring units or drilling rigsand other infrastructure.
To earn the appropriate prize, a tight deadline must be met.

Salvage efforts are limited to a specific period which is pre-determined in the policy terms and conditions. If efforts are made after the specified period to recover the ship and its cargo, the salvager will have no legal right over the cargo.
The phrase "No Cure; No Pay" is enforced to avoid incorrect claims for prizes and other advantages.

"No cure; no pay" is a phrase to describe the idea that without a decent level of achievement in rescuing operations, no money will be compensated.
Ship owners may hire salvor to avoid their property and vessels from being stolen.

Salvors are contracted by ship owners primarily for two purposes: recovering valuable items and preventing ship piracy.

Case:

A ship loaded with toxic chemical {LPG} was on verge of sinking. The in charge of the ship raised the flag for help. With the help of a few salvors, the vessel was rescued with minimum damage and harm to the environment. The salvor was rewarded with a special reward for saving the environment and the vessel.

Learn more about Marine Insurance

Annual open Policy

Read More

Single Transit Policy

Read More

Sales turn over Policy

Read More

Transit Insurance

Read More

Marine Insurance

Read More

Cargo Insurance

Read More

Read More

Conclusion:

Online marine insurance, also sometimes known as transit insurance or cargo insurance policy, protects the insured in case of an unfortunate event of salvage. Thus, the insured must know the basics of the Laws of Salvage in Marine Insurance.

View More

Marine Insurance Premium Calculator

Select Commodity

Select Mode of Transport

Cover Amount Required

Calculate

Why Buy From Policybazaar

Marine Insurance Companies

Reliance Marine

View more insurers

Disclaimer: Above mentioned insurers are arranged in alphabetical order. Policybazaar.com does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

Commercial Insurance Products

Group Health Insurance

Marine Insurance

Cargo Insurance

Workmen Compensation Insurance

Professional Indemnity

Fire Insurance

Shop Insurance

Comprehensive Liability Insurance

Construction All Risk

Erection All Risk

Cyber Insurance

Directors & Officers Insurance

Contractor's Plant & Machinery

Office Package Policy

Group Personal Accident Insurance

Group Life Term Insurance

Drone Insurance

Marine Insurance Articles

Popular Articles
Recent Articles

Why Is Insuring Your Household Articles Important During Transit?

Why Is Insuring Your Household Articles Important During Transit?

When moving to a new home, safeguarding your household articles during transit is crucial. Transit insurance...Read more

27 Oct 2020 by Policybazaar 13377 Views

6 Not to Forget Principles of Marine Insurance

6 Not to Forget Principles of Marine Insurance

The principles of marine insurance are essential for maintaining fairness and consistency in the delivery of...Read more

10 Feb 2020 by Policybazaar 14394 Views

Difference between Marine Open Cover & Marine Open Policy

Difference between Marine Open Cover & Marine Open Policy

Marine insurance and its advantages cannot be ignored if you are in a shipping business or your business needs...Read more

19 Aug 2022 by Policybazaar 8428 Views

Warranties in Marine Insurance

Warranties in Marine Insurance

Warranties in marine insurance are referred to as assurance of coverage provided by the insurer. It outlines the...Read more

20 Jul 2023 by Policybazaar 6610 Views

Types of Marine Losses

Types of Marine Losses

In the shipping business, different types of losses can happen. Marine insurance helps manage these risks by...Read more

23 Nov 2022 by Policybazaar 10708 Views

Insurance for Transporting Goods in India

Insurance for Transporting Goods in India

In the intricate web of India's transport industry, the movement of goods plays a vital role in driving the...Read more

03 Nov 2023 by Policybazaar 2966 Views

Documents Required for Import-Export Customs Clearance

Documents Required for Import-Export Customs Clearance

Any shipment moving from one country to another requires customs clearance. Apart from international laws and...Read more

22 Nov 2022 by Policybazaar 6963 Views

Incoterms Explained Marine Insurance

Incoterms Explained Marine Insurance

Incoterms or International commercial terms are some standard terms published by the ICC (International Chamber of...Read more

10 Aug 2023 by Policybazaar 3755 Views

International Cargo Clauses & Inland Transit Clauses in Marine...

International Cargo Clauses & Inland Transit Clauses in Marine...

Marine insurance coverage is divided into two types. One is International Cargo Clause (ICC) and the second is the...Read more

13 Aug 2022 by Policybazaar 10385 Views

Inland Transit vs Marine Cargo insurance

Inland Transit vs Marine Cargo insurance

If your business involves the transportation of finished or unfinished goods or raw materials, you probably need a...Read more

15 Nov 2022 by Policybazaar 5561 Views

What is Freight Insurance?

What is Freight Insurance?

In addition to the basic carrier policy, a Freight insurance policy will provide additional protection for your...Read more

18 Mar 2019 by Policybazaar 24396 Views

What is Carrier Legal Liability Insurance?

What is Carrier Legal Liability Insurance?

Within the transportation industry, where goods traverse vast distances across different modes of transport,...Read more

29 Apr 2024 by Policybazaar 2405 Views

What do Perils of the Sea Mean in Marine Insurance?

What do Perils of the Sea Mean in Marine Insurance?

Transporting goods across the vast expanse of oceans comes with inherent risks. Perils of the sea, a term used in...Read more

05 Apr 2024 by Policybazaar 2964 Views

Documents to Submit Along with Claim Form in Marine Insurance

Documents to Submit Along with Claim Form in Marine Insurance

The marine policy covers several kinds of risks faced by ship or cargo owners. It is an essential insurance policy...Read more

25 May 2023 by Policybazaar 4264 Views

Voyage Charter Vs Time Charter

Voyage Charter Vs Time Charter

The shipping industry relies heavily on chartering, essentially the leasing of vessels between shipowners and...Read more

29 Mar 2024 by Policybazaar 2589 Views

What is Export?

What is Export?

Export is the sale of goods and services manufactured in a...Read more

30 Apr 2025 by Policybazaar 20 Views

Types of Shipping Containers with Size & Dimensions

Types of Shipping Containers with Size & Dimensions

Shipping containers have evolved over the years. Now, businesses...Read more

25 Apr 2025 by Policybazaar 54 Views

How to Choose the Right Shipping Line in 2025: Top 5 Key Factors

How to Choose the Right Shipping Line in 2025: Top 5 Key Factors

Selecting the right shipping line is crucial for Indian...Read more

07 Apr 2025 by Policybazaar 141 Views

How to Create a Freight Forwarding RFP for Shipping?

How to Create a Freight Forwarding RFP for Shipping?

RFP, or Request for Proposal in freight forwarding, is a formal...Read more

03 Apr 2025 by Policybazaar 155 Views

What is Pallet Shipping?

What is Pallet Shipping?

Pallet shipping is a mode of transporting goods using pallets to...Read more

02 Apr 2025 by Policybazaar 161 Views

What are High Cube Containers in Shipping?

What are High Cube Containers in Shipping?

‘High Cube containers’ is a category of shipping containers...Read more

02 Apr 2025 by Policybazaar 155 Views

International Shipping - How to Start Shipping Internationally From...

International Shipping - How to Start Shipping Internationally From...

Expanding your business to international markets can be a...Read more

01 Apr 2025 by Policybazaar 161 Views

Products to Export from India

Products to Export from India

India has largely been an agricultural economy but has turned...Read more

18 Mar 2025 by Policybazaar 189 Views

Modes of Transportation Covered Under Marine Insurance

Modes of Transportation Covered Under Marine Insurance

Marine insurance is essential for protecting goods during...Read more

23 Oct 2024 by Policybazaar 827 Views

What is Carrier Legal Liability Insurance?

What is Carrier Legal Liability Insurance?

Within the transportation industry, where goods traverse vast...Read more

29 Apr 2024 by Policybazaar 2405 Views

Accumulation Clause in Marine Insurance

Accumulation Clause in Marine Insurance

The accumulation clause in marine insurance is a crucial...Read more

05 Apr 2024 by Policybazaar 1795 Views

What do Perils of the Sea Mean in Marine Insurance?

What do Perils of the Sea Mean in Marine Insurance?

Transporting goods across the vast expanse of oceans comes with...Read more

05 Apr 2024 by Policybazaar 2964 Views

Shipping Insurance for High-Value Items

Shipping Insurance for High-Value Items

Shipping insurance for high-value items is crucial to mitigate...Read more

03 Apr 2024 by Policybazaar 1935 Views

Intermediate Storage in Marine Insurance

Intermediate Storage in Marine Insurance

Intermediate storage in marine insurance plays a crucial role in...Read more

03 Apr 2024 by Policybazaar 1614 Views

Over Dimensional Cargo in Marine Insurance

Over Dimensional Cargo in Marine Insurance

The world of marine transportation caters to a vast array of...Read more

03 Apr 2024 by Policybazaar 1604 Views

Policybazaar for Business - Marine Insurance - Customer Reviews

View all 114 reviews

View all

4.3

out of 5

Based on 114 reviews

14 users

87 users

13 users

0 users

0 users

3.8 April 20, 2023

Anas

Great Experience

I recently purchased Marine insurance from Policybazaar for my shipping business and I must say I am thoroughly impressed with their service and coverage. From start to finish, the experience has been smooth and hassle-free.Thankyou.

Mizoram

4.3 April 03, 2023

Vaishnav

Provides Comprehensive Protection

When it comes to coverage, Marine insurance that i bought from PolicyBazaar has exceeded my expectations. It provides comprehensive protection for my cargo and vessels during transit, ensuring I can focus on my business operations with peace of mind. Thankyou.

Assam

4.3 March 17, 2023

Umang

Excellent Services

I highly recommend Marine insurance from PolicyBazaar website to anyone in the shipping or logistics industry. Their user-friendly website, comprehensive coverage, and excellent customer service make them stand out from the competition. With Policybazaar, I feel confident in navigating the high seas, knowing that my business is well-protected. Thank you, Policybazaar.

Chennai

4.3 February 28, 2023

Vishal

User Friendly Interface

The website's user-friendly interface made it easy to compare different plans and find the perfect fit for my business needs.Thanks

Gurugram

4.3 February 11, 2023

Parth

Prompt Services

I appreciate the transparency and honesty with which Policybazaar handled my claims. They were prompt in processing my claim and their claim settlement process was hassle-free.Thanks PolicyBazaar.

Noida

3.8 February 10, 2023

Rishabh

Exceeds Expectations

I recently had the pleasure of purchsing marine insurance from Policy bazaar website and I must say it has been an outstnding experience from start to finish. I am thrilled to share my positive customer review, as this truly exceeded my expectations. Thanks PB.

Jamshedpur

3.8 January 31, 2023

Arvind

Easy Navigation

The ease of navigating the Policy bazaar website and finding the right marine insurance policy was impressive. The website's user-friendly interface and intuitive design made it incredibly simple to compare various options, understand the coverage details and make an informed decision. I appreciated the transparency provided throughout the process. Thanks.

Ajmer

3.8 January 21, 2023

Vishal

Excellent Support

The customer service provided by Policy bazaar was decent. Their team was responsive, knowledgeable and went above and beyond to assist me at every step. Their professionalism and commitment to customer satisfaction were truly commendable.Thankyou.

Mumbai

4.3 January 11, 2023

Sanjeev Rathor

Efficient Process

When it came to claims processing, Policy bazaar demonstrated remarkable eficiency and effectivenes. I had an unfortunate incident during the coverage period and filing a claim was a breeze. The entire process was streamlined and their team guided me throuugh every necssary step, making it hassle-free. The promptness with which my claim was setled reflected their commitment to their customers' well-being and peace of mind. Thankyou.

Pune

3.8 January 01, 2023

Kunal

Comprehensive Coverage

I must mention the comprehensive coverage provided by the marine insurance policy I purchasd through Policy bazaar. It offered me the necesary protection and peace of mind. Thankyou PolicyBazaar.

Indore

114 Review Item

Disclaimers⁺
*Savings of 42% are based on the comparison between the highest and lowest premiums for a Rs 50 lakh sum insured under Inland Transit Clause B or Institute Cargo Clause B for single transit cover of auto spare parts with shipment type of Inland(Domestic) and road as mode of transport. Premium varies on the basis of Occupancy, Business Activity & Coverage Type
By clicking on "View Plans" you agree to our Privacy Policy and Terms Of Use and also provide us a formal mandate to represent you to the insurer and communicate to you the grant of a cover.
The details of insurance coverage, inclusions and exclusions are subject to change as per solutions offered by insurance providers. The content has been curated based on the general practices in the industry. Policybazaar is not responsible for the factual correctness of these details.