Salvage charges
What salvors are owed for saving property at sea, recoverable under the cover.
Definition
Charges recoverable under maritime law by a salvor independently of contract. Institute Cargo Clauses (A), (B) and (C) all cover salvage charges incurred to avoid loss from any cause except those excluded. Salvage is distinct from general average, although a single casualty frequently produces both: the salvor is paid for the service, and the cost is then apportioned between the interests.
Why it decides money
Salvage awards on a large container ship casualty run to very large sums, and the cargo's share is assessed on its value. It is a liability created by somebody else's emergency.
Related terms
- General average
- A shared bill when something is sacrificed to save the whole venture.
- Sue and labour
- Your duty to minimise a loss, and the insurer's duty to pay for the effort.
More in claims and recovery
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