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Salvage developments
During the year, the International Group of P&I Clubs and
the International Salvage Union have reached agreement on an
optional new scheme to replace the special compensation arrangement
for salvors who have failed to earn a sufficient traditional
'no cure no pay' award and have prevented or minimised damage
to the environment. The so-called Special Compensation P&I
Clause ('SCOPIC') would allow salvors to contract out of the
special compensation provisions of Lloyd's Open Form and apply
the new scheme at any time of their choosing, regardless of the
circumstances.
SCOPIC includes a provision intended to discourage salvors from
invoking the new scheme where the traditional 'no cure no pay'
award would exceed the remuneration payable under SCOPIC.
ICS has supported SCOPIC to the extent that it seeks to provide
clarity and thereby reduce the need for expensive and time consuming
litigation. However, there are some continuing concerns both
about the departure from the fundamental principles of the 1989
Salvage Convention (e.g. that threat of damage to the environment
should be the trigger for payment of special compensation) and
about the lack of balance of the clause itself. ICS therefore
welcomes the proposal that SCOPIC should initially be introduced
on a two year trial basis and then reviewed.
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