Since 2000, it has been common case law to attach a SCOPIC (Special Compensation – P&I Clubs) clause to the LOF in order to circumvent the restrictions of the “Special Compensation” provisions of the 1989 Convention (as in the case of The Nagasaki Spirit).  [Clarification needed] The 1989 Convention aims to address this shortcoming by providing for an enhanced rescue premium that takes into account the capacities and efforts of rescue companies to prevent or minimise environmental damage. The 1989 Convention introduced “special compensation” to be paid to Rescuers who did not receive a reward in the normal manner (by recovering the ship and cargo). Environmental damage is defined as “significant physical damage to human health or to marine life or resources in coastal or inland waters or adjacent areas caused by pollution, contamination, fire, explosion or similar major incidents”. Traditionally, the rescue reward depended on the rescue fight that successfully saves the ship or cargo, and if neither is rescued, the rescue reward receives nothing, no matter how much time and money is spent on the project. This harsh principle is called “No Healing – No Reward”; and at the top of the first page of the LOF, under the heading “Rescue Agreement”, is an explanation of this basic premise.  This is a limited overview – please log in or subscribe to learn everything we know about the term “recovery contract”. The amount of the surcharge depends in part on the value of the rescued ship, the degree of risk and the degree of danger in which the ship was located. .