Answer
SCOPIC- Special Compensation P&l Club Clause.
Scopc was introduced due to shortcomings reported by both Shipowners and Salvors.
Salvors Concern-
1. Onus of proof of Environmental damage.
2. Geographical restrictions of Coastal waters, Inland waters and areas adjacent to it.
Shipowners concern-
1.Delay by salvors to let the damage turn to Environmental damage (high risk).
2.Uplift for the salvors was too high.
3.Tariff rates for additional services/ equipment by salvors was not fixed and led to inflated charges borne by the shipowner.
To fix these issued, the International Salvage Union (ISU), the International Group of P&I Clubs, and property underwriters came together in 1999 and created SCOPIC as an optional, pre-negotiated tariff regime.
SCOPIC can be incorporated in the agreement beforehand, but can be
invoked later.
Invocation by Salvor: The salvor can invoke the SCOPIC clause at any time during a salvage operation, at their own discretion—regardless of geographical position or whether an environmental threat can be proven.
Fixed Tariff Rates: Once invoked, the salvor stops relying on Article 14 and is paid based on fixed, pre-agreed hourly/daily SCOPIC tariff rates for tugs, personnel, and equipment, plus a fixed 25% uplift.
P&I Club Financial Security: Within 2 working days of SCOPIC being invoked, the shipowner's P&I Club must provide financial security (up to US$ 3 million) to guarantee the salvor’s payment.
Special Casualty Representative (SCR): A neutral technical expert (SCR) is appointed to oversee the Salvage operation to decide Rewards/ Out of pocket expenses.