SALVAGE REWARD IN TRANSPORT INSURANCE

By protecting the Insured, the Insurance business engages in maritime and aviation salvage. It covers the risks present in sevices of salvors engaged to save or help save a recognised subject of salvage when in danger. As a rule, salvors who render the services of this description acquire a maritime lien on the property saved and they are entitled to remunaration.
The legal institute of salvage should be recognized as the institute of maritime law. It does not exist anywhere else. Salvage of a house on fire by a neighbour does not grant any entitlement to salvage reward.
Salvors may enforce their rights by proceedings in rem, by arresting the subjects of salvage, maritime res, consisting of a vessel, cargo and freight and by arresting an aircraft, or by proceedings in personam against their owners. The lien includes jus in re and jus in rem.
The salvage reward is covered by hull insurers of vessels, cargo, freight and aircrafts. Liability of salvors is also covered by insureres.
The Serbian Marine and Aircrft Insurance Laws have endorsed provisions of international conventions regulating liens.