Article 262 of the Saudi Commercial Maritime Law
المادة 262 من النظام البحري التجاري · الفصل الثاني: الإنقاذ البحري
The Article provides that the salvage reward is set by agreement of the parties, failing which the court sets it and its apportionment among owner, master, and crew; for a foreign salvage ship, apportionment follows its flag state's law.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يتفق الطرفان على مقدار المكافأة، فإن لم يتفقا حددت المحكمة مقدارها، وتحدد بالكيفية نفسها نسبة توزيعها بين مالك السفينة وربانها وبحارتها.
2- إذا كانت السفينة التي قامت بالإنقاذ البحري سفينة أجنبية فيخضع توزيع المكافأة بين مالكها وربانها والأشخاص الذين في خدمتها لنظام الدولة التي تتمتع السفينة بجنسيتها.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 262 explained in plain English
This Article answers two questions: how much is the salvage reward? and how is it distributed?
Setting the amount: the principle is that the parties agree on the amount of the reward. If they do not agree, the court sets the amount.
Distribution: in the same way, that is, by agreement and otherwise by decision of the court, the proportion in which the reward is distributed among the ship's owner, master, and crew is set. So the reward does not all go to the owner, but is shared with the master and crew.
A foreign ship: if the ship that carried out the salvage is foreign, the distribution of the reward among its owner, master, and the persons in its service is subject to the law of the State whose nationality the ship has, not to the rule of agreement or judicial determination in paragraph 1. This exception is limited to distribution of the reward; setting its amount remains subject to paragraph 1.
To be entitled to a reward in the first place, salvage must lead to a useful result under Article 261. Anyone disputing the amount of the reward or its distribution may consult a lawyer specializing in maritime matters.
Practical example
A Saudi ship rescued another disabled ship in the Red Sea, and the owners of the two ships did not agree on the reward. The court sets its amount, and also sets the proportion of it that the owner, master, and crew of the salvaging ship receive.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 262 of the Saudi Commercial Maritime Law
Who sets the marine salvage reward?
The parties agree on it, and if they do not agree, the court sets the amount.
Do the crew have a share in the salvage reward?
Yes. The proportion of distribution among the ship's owner, master, and crew is set by agreement, and otherwise by the court.
How is the reward for salvage by a foreign ship distributed?
Its distribution among its owner, master, and those in its service is subject to the law of the State whose nationality the ship has.
More articles on Collision and Maritime Salvage
- Article 111
The master submits a report on unusual incidents to the Authority within 24 hours of arrival; the Authority verifies it and draws up a record, and the master may not unload the affected cargo before the report except in extreme necessity.
1- إذا طرأت أثناء الرحلة حوادث غير عادية تتعلق بالسفينة أو بالركاب أو بالشحنة وجب على الربان أن يعد تقريراً بذلك يقدمه إلى الهيئة خلال أربع وعشرين ساعة من وصول
- Article 254
The article specifies who bears compensation for a maritime collision according to its cause: fault of one ship, force majeure or an unknown cause, or common fault, and sets out the cases of joint liability toward third parties.
1- إذا حدث تصادم بسبب خطأ إحدى السفن التزمت السفينة المحدثة للضرر بالتعويض الذي يترتب على هذا التصادم. 2- إذا وقع التصادم بسبب قوة قاهرة، أو كان هناك شك في أسبا
- Article 255
The Article provides that the liability set out in the collision chapter also arises if the collision occurs through the pilot's fault, even if pilotage is compulsory, without prejudice to the general rules of liability.
تترتب المسؤولية المنصوص عليها في هذا الفصل, إذا وقع التصادم بخطأ المرشد، ولو كان الإرشاد إجباريًّا، وذلك مع عدم الإخلال بالقواعد العامة في المسؤولية.
- Article 256
The Article requires the master of each ship involved in a collision to help the other ships and those aboard without endangering his own ship, and to give them his ship's particulars; the shipowner is liable only on his express instructions.
1- على ربان كل سفينة من السفن التي حدث تصادم بينها أن يبادر إلى مساعدة السفن الأخرى وبحارتها وغيرهم من الأشخاص الموجودين عليها، وذلك بالقدر الذي لا يعرض سفينته
- Article 257
The Article lists the courts before which a claimant may bring a maritime collision action, and allows arbitration agreements provided it takes place within the area of one of these courts, as the claimant chooses.
1- للمدعي إقامة الدعوى الناشئة عن التصادم البحري أمام إحدى المحاكم الآتية: أ- المحكمة التي يقع في نطاق اختصاصها موطن المدعى عليه، أو مقر عمله الرئيس. ب- المحكمة
- Article 258
The Article bars hearing a collision compensation action after two years from the incident and a recourse action after one year from the death, and suspends the periods if the ship cannot be arrested and the claimant is Saudi or domiciled in the Kingdom.
1- لا تسمع الدعوى بالتعويض الناشئة عن التصادم بعد مضي سنتين من تاريخ وقوع الحادث. 2- لا تسمع دعوى الرجوع المنصوص عليها في الفقرة (5) من المادة (الرابعة والخمسين
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.