Answer
The modern international framework is the International Convention on Salvage, 1989, adopted on 28 April 1989 and in force since 14 July 1996. It replaced the older 1910 salvage regime, which was heavily based on “no cure, no pay.”
The main development was that modern salvage law recognizes not only the value of saving property, but also the salvor’s efforts in preventing or minimizing environmental damage.
Art 13- It outlines how an arbitrator, tribunal, or court calculates the monetary award for a successful salvage operation. It retains the traditional concept that a reward is payable only if property (ship, cargo, freight) is saved, and the total reward cannot exceed the total salved value of the property.
Criteria for fixing Reward-
1.Salved value of the property
2.Skill and efforts in protecting property and environment.
3.Measure of success achieved.
4.Nature of degree of danger.
5.Time and skill, expenses and losses incurred by salvor.
6.Promptness in rendering services.
7.State of readiness of equipment and their value.
Article 14- Special Compensation: It applies where a salvor assists a vessel which threatens damage to the environment, but the normal Article 13 reward is insufficient.
1.Onus on proof of environmental salvage on salvor.
2.Geographical restriction pertaining to- Coastal waters, Inland waters and areas adjacent to it.
Key criteria for Special Compensation are:
- The vessel itself must threaten damage to the environment.
- The salvor must have carried out salvage operations in respect of that vessel.
- The salvor’s normal Article 13 reward must be less than the Article 14 special compensation otherwise payable.
- The salvor can recover reasonable expenses incurred in the operation, including a fair rate for equipment and personnel actually and reasonably used.
- If the salvor’s efforts prevent or minimize environmental damage, the compensation may be increased by up to 30% of expenses.
- If the tribunal considers it fair and just, the increase can be up to 100% of expenses.
- If the salvor was negligent and thereby failed to prevent or minimize environmental damage, the special compensation may be reduced or denied.