Salvage charges incurred in preventing a loss by perils insured against may be recovered as a loss by these perils. Salvage Charges means the charges recoverable under maritime law by a salvor independently of contract. They do no include expense of services in the nature of salvage rendered by the assured or his agents or any person employed for hire by them, for purpose of averting a peril insured against. Such expenses, where properly incurred, may be recovered as particular charges or as a general average loss, according to the circumstances under which they were incurred. Salvage charges incurred in connection with an insured peril are recoverable under insurance policies.

In Contract salvage, the owner of the property and the salvor enters into a salvage contract prior to the commencement of salvage operations. The amount may be fixed based on “time and effort” or any other mutually acceptable basis. Normally, in contract salvage, “LOF (Lloyd’s Open Form)” is used worldwide whereby the salvage amount is not mentioned but merely states the principle “No Cure, No Pay.”

An organization whose duties are limited to preventing further damage to property during or after a fire. They are established by Property Insurance companies.

The Mumbai Salvage Corps works hand in hand with the Mumbai Fire Brigade responding to all the Fire calls transmitted to its station through a hotline from the Fire Brigade. While the Fire Brigade is busy fighting the Fire, the Salvage Corps attempts to remove property not involved in the Fire to a place of safety. Sometimes it covers such property to prevent smoke and water damage and also assists in removing the water from Fire-affected premises, thus reducing water damage. In many instances, the Salvage Corps also provides security service by posting salvage men on watch duty till the Insurance surveyor completes his work.

A group, created by a property insurance company, charged with limiting property damage due to a fire, whether during or after the fire itself.

An agreement whereby a guarantor agrees to meet a salvage award if the party responsible fails to pay it to the salvor. Such an agreement enables a salvor safety to release the maritime lien to which he is entitled on the salved property.