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.

Read more

Get right expert advice

Hassle free policy

Speedy Claims

Fast-track your search with instant quotes from top insurers

Get ₹10 lakh cover
starting at ₹591/transit+

Step 1/2
Instant policy copy
All commodities available
Single transit and annual covers

Get ₹10 lakh cover starting at ₹591/transit+

Instant policy copy
All commodities available
Single transit and annual covers
secure-icon We don't spam
Get Updates on WhatsApp
Check Your Premium Now

Get ₹10 lakh cover
starting at ₹591/transit+

Step 2/2
Fast-track your search with instant quotes from top 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:

  1. 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.

  2. 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.

  3. 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.
  4. 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.

  5. 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

  6. 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.

  7. 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.

  8. 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.

  9. 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.

  10. 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.


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


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.

Written By: PolicyBazaar - Updated: 12 January 2023

Marine Insurance Premium Calculator

Select Commodity

  • New machinery machine tools & spares in closed ISO containers
  • Solar panel
  • Machinery machine tools & spares duly packed/lashed
  • Electronic & white goods
  • New machinery machine tools & spares in closed ISO containers
  • Solar panel
  • Machinery machine tools & spares duly packed/lashed
  • Electronic & white goods
  • New machinery machine tools & spares in closed ISO containers
  • Solar panel
  • Machinery machine tools & spares duly packed/lashed
  • Electronic & white goods

Select Mode of Transport

  • Road
  • Air
  • Sea
  • Courier
  • Rail

Cover Amount Required

Enter value between 10 thousand to 10 crore


Premium starts from

Great! Now Unlock Best Plans for You

No online plans found!

But, we have offline plans ready.
Connect with our advisor to explore more

Schedule a callback

Now help your friend get Business Insurance

Your referral is greatly appreciated!

Our team will reach out to your friend soon to help with their business insurance requirements.

Marine Insurance Articles
Transit of goods through waterways involves high risks. Marine insurance plays a significant role in safeguarding...Read more
23 Nov 2022 by Policybazaar 7182 Views
When moving to a new home, safeguarding your household articles during transit is crucial. Transit insurance...Read more
27 Oct 2020 by Policybazaar 9353 Views
Warranties in marine insurance are referred to as assurances or promises by the policyholder about a certain act...Read more
20 Jul 2023 by Policybazaar 3199 Views
Traders who export or import their goods across distant lands are aware of the risks during transit. While there...Read more
23 Feb 2022 by Policybazaar 8087 Views
In addition to the basic carrier policy, a Freight insurance policy will provide additional protection for your...Read more
18 Mar 2019 by Policybazaar 21167 Views
Within the transportation industry, where goods traverse vast...Read more
29 Apr 2024 by Policybazaar 68 Views
The accumulation clause in marine insurance is a crucial...Read more
05 Apr 2024 by Policybazaar 135 Views
Transporting goods across the vast expanse of oceans comes with...Read more
05 Apr 2024 by Policybazaar 229 Views
Shipping insurance for high-value items is crucial to mitigate...Read more
03 Apr 2024 by Policybazaar 122 Views
Intermediate storage in marine insurance plays a crucial role in...Read more
03 Apr 2024 by Policybazaar 142 Views
Policybazaar for Business - Marine Insurance - Customer Reviews
View all
Based on 114 reviews
out of 5
Based on 114 reviews
14 users
87 users
13 users
0 users
0 users
3.8 April 20, 2023
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.
4.3 April 03, 2023
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.
4.3 March 17, 2023
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.
4.3 February 28, 2023
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
4.3 February 11, 2023
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.
3.8 February 10, 2023
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.
3.8 January 31, 2023
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.
3.8 January 21, 2023
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.
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.
3.8 January 01, 2023
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.