In the context of insurance, who has the right of salvage?

The insurer has the right of salvage because, after a loss that results in a claim payment, the insurer may take possession of any damaged property. This allows the insurer to recover some of its payout by selling the salvaged property or otherwise mitigating their loss. The principle behind the right of salvage is to prevent the insured from profiting from a loss, thus ensuring that insurance exists to indemnify—not to enhance the insured's financial position.

In many insurance policies, once the insurer has compensated the insured for the loss, they can pursue the salvage rights to reduce the financial impact of the claim. This is rooted in the concept of subrogation, where the insurer is stepping into the shoes of the insured to recover what was lost.

The insured does not typically have a salvage right in these cases as their claim has been satisfied by the insurer, and they no longer have an interest in the property. This prevents any possibility of double recovery by the insured. Thus, the arrangement is designed to maintain fairness and equity within the insurance system.