Subrogation in Marine Insurance
The insurer's right under MIA 1906 s.79 to step into the assured's recovery against carriers and other third parties after paying a claim.
Subrogation is the insurer’s right, after paying a loss, to the assured’s rights and remedies against third parties. Under the Marine Insurance Act 1906 s.79(1) a total loss subrogates the insurer from the time of the casualty and entitles it to whatever remains; under s.79(2) a partial loss subrogates it only so far as the assured has been indemnified.
The full article will cover cargo recoveries against carriers under the Hague-Visby Rules and other regimes, the interaction with package limitation and time bars, sharing a recovery between primary and increased value insurers, and the carrier and bailee exclusion in Institute Cargo Clauses clause 15.2. The cargo insured value article covers how this topic affects the sum insured on a cargo policy.