A Code of Practice between the International Group of P&I Clubs and IUMI has recently been agreed in relation to future casualty situations that may give rise to the need for third party salvage services.
The document sets out rules and procedures to be followed by property and liability underwriters in case of such incidents, including the payment of fees and disbursements to the Special Casualty Representative (SCR).
#1 In the event of a casualty or other occurrence giving rise to the insured vessel requiring assistance such as but not limited to a salvage response, the property underwriter will:
#2 In relation to salvage services under Lloyd’s Standard Form of Salvage Agreement where the Special Compensation P&I Clubs (SCOPIC) Clause has been invoked by the contractor the following provisions will apply:
In the event the Liability Underwriters pay the fees and disbursements of the SCR on behalf of the owner of the vessel, the property underwriters will, where practicable, reimburse their above proportion of those fees and disbursements agreed by them, whether interim or final, directly to the liability underwriter concerned within 28 days of a payment request.
