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LSDefine
Simple English definitions for legal terms
salvage award
Read a random definition: voluntary abandonment
A quick definition of salvage award:
A salvage award is a reward given to someone who helps save a ship or its cargo from danger. This reward is not based on any agreement or contract, but is given as a way to encourage people to help save lives and property. The amount of the reward is usually decided by a court. Sometimes, the salvage award is also used to describe the property that is saved after a fire or other loss, which may be kept by an insurance company that has compensated the owner for the loss.
A more thorough explanation:
A salvage award is a compensation given to a person who helps save a ship or its cargo from shipwreck, capture, or other loss. This reward is payable by the shipowner or the owners of goods carried in the ship to the person who saves the property. The right to salvage is an ancient rule of maritime law and is not based on contractual rights.
For example, if a ship is sinking, and a person helps to rescue the crew and cargo, they may be entitled to a salvage award. The amount of the award is usually assessed by the court, but sometimes an express agreement is made before the assistance is rendered.
Another example is when a fire damages a property, and the insurance company compensates the owner for the loss. The remaining property that is saved from the fire is called salvage, and the insurance company may retain it.
Overall, a salvage award is a form of compensation given to those who voluntarily render their services to save life and property. It is a reward to encourage others to undertake the saving of life and property.