Three friends, Ashok, Lalit and Hari-teamed up to start a lobster export business. Ashok owned a ship which was used in the business for fishing as well as for transporting the processed lobsters to foreign shores. They

Salvage refers to the process of recovering or preserving insured property that has been damaged or lost. The duty of an insurer pertaining to salvage involves several key aspects: Duty to Preserve Salvage: Insurance companies have a responsibility to make every effort to preserve salvage. This involves attempting to safeguard and salvage the insured property in the event of a loss. For the purpose of evaluating the damage and determining the salvageable value of the property, insurers may use surveyors or adjusters. Right of Subrogation: After paying a claim, insurers have the option to assume the role of the insured and seek all appropriate legal remedies to recoup their expenses from liable parties. This is known as the right of subrogation. This includes the right to salvage damaged property and recoup any remaining value. To lessen their losses, insurers may decide to sell recovered products, salvage rights, or other recoverable assets. Salvage Value Considerations: When resolving disputes, insurers must take salvage value into account. The estimated worth of the damaged item or its remaining parts that can be recovered or sold is known as the salvage value. Usually, this sum is subtracted from the total claim settlement given to the insured. Salvage Disposition: The way the recovered items or assets are handled is up to the insurers. They could decide to auction off salvage, bargain salvage deals with specialised salvage firms, or give salvage rights to interested parties. The type of property, the state of the market, and the possibility of recovering value are frequently taken into consideration when choosing a salvage disposition.