That rule of thumb applies to ambient light shooting. Basically, the smaller the field of view, the less the amount of camera shake that can be tolerated without visible blurring of the image. There are exceptions, such as when shooting with lenses/cameras that include an image stabilizer (for example, when I use my 100-400IS lens above water, I would normally have to follow the rule and try to stay at 1/400 for telephoto shots -- however, the image stabilizer has allowed me to get sharp images as low as 1/45 if I do a good job of stabilizing the camera).
As Peter implies, most underwater shooting is done with a strobe. The strobe "flash" is of very short duration and tends to freeze the action to a certain extent so it tends to make shutter speed less important. As long as you shoot above 1/60 or a bit higher for faster-moving subjects, you'll usually be able to stop the action underwater. I'll also add that, in additon to shutter speed, the aperture also affects the exposure of the background (however, it will also affect foreground exposure as well) . . .