What can be retained by either the insured or the insurer as defined under salvage?

Salvage refers to the rights either party—the insured or the insurer—may have regarding property that has been damaged. When a claim is made, the insurer may pay the insured for the loss of the damaged property, but they might also retain the right to any salvageable value from that property. This means that the damaged article that is the subject of the claim can be either retained by the insured or the insurer, depending on the terms of the policy and the specific circumstances of the claim. Retaining the salvage helps mitigate the loss, as the damaged item might still hold some value, which can then be recouped or put to use.

The other options do not pertain to salvage. Funds allocated for policy renewal, penalized amounts for late claims, and overall profits from the insurance premium do not relate to the concept of salvage in the context of a claim. Salvage specifically involves the physical assets and their value.