This harsh principle is called "No cure – no pay"; and at the top of page one of the LOF, beneath the title "Salvage Agreement" is a statement of this fundamental premise.
This situation alarmed coastal states (whose beaches were liable to pollution from oil slicks) and P&I Clubs (who might be responsible to "pick up the tab" and indemnify those third-party risks).
[4] To remedy the position, the Lloyd's Open Form (LOF) 1980 made provision for a stricken tanker to engage salvage services and guarantee a reward provided that the salvor had exercised due diligence in attempting to save the marine environment from pollution.
This innovation proved very successful, and the international community was so delighted and impressed that only a few years later the 1989 Salvage Convention came into force, adopting this new LOF idea.
[d][e] Although the 1989 Convention has been a success, the House of Lords decision in The Nagasaki Spirit[5] showed that it had been poorly drafted in places, and did not always provide adequate reimbursement to salvors.