Class 1 (Chief Engineer) Engineering Management 📅 Jun 2025

Exam Question

(a) What is SCOPIC? How does it solve the difficulties of salvors?

(b) In case of a collision between two ships on high seas, which state has the right & responsibility for following with justification and briefly describe the salient points of the applicable convention.

ii) To cancel COC of crew members.

iii) For payment of compensation.

Reference Answer

### (a) SCOPIC and its Role in Salvage
**1. Definition of SCOPIC**
SCOPIC stands for **Special Compensation P&I Club Clause**. It is a supplementary clause that can be incorporated into a Lloyd's Open Form (LOF) salvage contract. It is designed to provide a guaranteed financial safety net for salvors, particularly in cases where a traditional salvage award under the 'No Cure - No Pay' principle of LOF would be insufficient to cover the salvor's costs, or where the primary objective is the prevention of pollution rather than saving property of high commercial value.
When invoked by the salvor, SCOPIC replaces the special compensation provisions of Article 14 of the International Convention on Salvage 1989.

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