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MARINE CLAIMS | SCOPIC clause In association with brand MARINE CONSULTANTS
The positive impact of SCOPIC on salvage Mark Hoddinott, Senior Adviser, brand MARINE CONSULTANTS, explains the benefits brought by the SCOPIC Clause for the whole salvage market Prior to the introduction of the SCOPIC Clause into Lloyd’s Open Form (LOF) contracts, the role of the marine consultant was very singular. Every party involved in a collision, salvage and/ or pollution case was entitled to appoint its own representative, a marine consultant, which led to numerous appointments for a single incident. Each marine consultant acted in the best interests of their client, whether the client was the shipowner, hull insurer, charterer, P&I insurer, or cargo owner. In cases where there were numerous cargo owners, the number of cargo representatives could, and did, become unmanageable. The large number of representatives inevitably led to disagreements and disputes amongst the various parties involved which often hindered operational progress and put the success of the operation at risk. The incorporation of the SCOPIC Clause into Lloyd’s Open Form in August 1999 introduced a fundamental shift in the way in which salvage cases were represented. Where SCOPIC cover is provided by or agreed with the P&I insurer, a special casualty representative (SCR) is usually appointed. In practice, this appointment is normally made by the P&I insurer, who pays the SCOPIC costs, on behalf of the shipowner. The primary role of the SCR is the same as that of the salvage master ie to use their best endeavours to salvage the property and to prevent or minimise damage to the environment. Essentially, the salvage master and the SCR are on the same side with broadly the same contractual obligations. The SCR represents all salved interests, namely, shipowner, cargo owner(s), charterers and their insurers, The Marine Insurer Claims Edition | September 2021
but does not represent the salvor. In summary, SCOPIC drastically reduces the number of representatives involved with a salvage operation, although only when SCOPIC is invoked as part of an LOF contract.
RIGOROUS PROCESS For a marine consultant to become an SCR he or she must apply to Lloyd’s to be added to the list of approved SCRs. There is a rigorous approval process whereby the marine consultant must demonstrate relevant, recent experience, medical fitness and proper insurance cover. The SCR list consists of about 50 marine consultants, all leaders in the field of marine salvage consultancy. Since 1999, SCRs have developed and honed their skills in being the single representative for multiple interests. They have also gained experience in working more closely with salvors, particularly with the salvage master and have embraced the concept of a collaborative working relationship in order to achieve contractual success. That is not to say that there are not disagreements between the salvage master and the SCR, human nature dictates that there will be from time to time, however, the good SCR will resolve disagreements on site rather than refer them back to their client(s) for action. What SCOPIC has done is to develop a culture of cooperation, rather than confrontation, between the salvor and the various parties involved, and between the various parties themselves. This culture has, in my view, been carried over into other, non-LOF salvage cases and wreck removal.
