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Class 1 (Chief Engineer) Engineering Management 📅 Jan 2023

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.

(i) To take disciplinary action against the crew member or master?

(ii) To cancel COC of crew members.

(iii) For payment of compensation.

Reference Answer

### (a) SCOPIC and its Role in Salvage
#### What is 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 provides an alternative method for remunerating salvors, distinct from the traditional "No Cure, No Pay" principle of salvage awards under Article 13 of the 1989 Salvage Convention.
- **Purpose**: The primary purpose of SCOPIC is to provide a financial "safety net" for salvors. It ensures they are fairly compensated for their efforts, especially in cases where the salved property's value is low or insufficient to generate a meaningful award under Article 13, or where the main objective is pollution prevention rather than property salvage.

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