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.

₹10 Lakh cover at only ₹591/transit⁺

Protect your goods with

single transit cover

We don't spam

Check premium now

By clicking on "Check premium now" you agree to our Privacy Policy and Terms Of Use

Get Updates on WhatsApp

Wallet-friendly plans
24/7 claim support
IRDAI-certified advisors

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.

Marine Insurance Premium Calculator

Type of Cover

Single Transit

Annual Open

Where will your products be shipped to?

Inland

Import

Export

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

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

Download Policy Wordings of TATA AIG

Why Buy From Policybazaar

Marine Insurance Companies

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

We don't spam

View plans

By clicking on " Check Your Premium Now " you agree to our Privacy Policy and Terms Of Use

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 17706 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 13059 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 11398 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 9449 Views

Top Import Export Business Ideas for Sellers in India

Top Import Export Business Ideas for Sellers in India

India's import-export sector has experienced rapid growth in recent times. This is due to globalisation...Read more

27 Aug 2025 by Policybazaar 3522 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 5995 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 13465 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 17233 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 5098 Views

Transit Insurance for Delivery Business

Transit Insurance for Delivery Business

Whenever goods and commodities are on the move, they are at risk of damage. A logistics company's reputation can...Read more

28 Feb 2024 by Policybazaar 4612 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 13793 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 9013 Views

What is Export?

What is Export?

Export is the sale of goods and services manufactured in a country to other countries. It is a part of...Read more

30 Apr 2025 by Policybazaar 2207 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 6356 Views

Products to Export from India

Products to Export from India

India has largely been an agricultural economy but has turned towards exports in recent years. Products exported...Read more

18 Mar 2025 by Policybazaar 3384 Views

What is the Customs Tariff Act 1975?

What is the Customs Tariff Act 1975?

India's international trade relies on rules that define how...Read more

05 Jan 2026 by Policybazaar 287 Views

What are E-commerce Exports?

What are E-commerce Exports?

E-commerce exports refer to selling and delivering products or...Read more

26 Sep 2025 by Policybazaar 621 Views

What is Anti-Dumping Duty?

What is Anti-Dumping Duty?

Anti-Dumping Duty (ADD) is a tariff imposed by governments to...Read more

25 Sep 2025 by Policybazaar 972 Views

What is MEIS?

What is MEIS?

The Merchandise Exports from India Scheme (MEIS) was introduced...Read more

11 Sep 2025 by Policybazaar 777 Views

Top Import Export Business Ideas for Sellers in India

Top Import Export Business Ideas for Sellers in India

India's import-export sector has experienced rapid growth in...Read more

27 Aug 2025 by Policybazaar 3522 Views

12 Documents Required for Exporting Goods from India

12 Documents Required for Exporting Goods from India

In foreign trade, the significance of proper documentation...Read more

09 Jun 2025 by Policybazaar 2368 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 2207 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 1278 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 1577 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 1379 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 1518 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 2286 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 1543 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 3384 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 2732 Views

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.

Claude

Insure your shipment & protect your goods from

overturning