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.

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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.


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
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