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CHAPTER 16 The Club’s Right of Subrogation

P. &. I Clubs Law and Practice

Page 285


The Club’s Right of Subrogation


16.1 Subrogation is an equitable doctrine which is “a corollary of the great law of indemnity”1 and is applicable, therefore, to all contracts of indemnity.2 The doctrine is as applicable to the contracts of indemnity between P&I Clubs and their members as to any other type of contract of insurance. It is, however, seldom that the claims in the nature of protection and indemnity insurance give rise to rights in the shipowner over and against third parties other than claims for an indemnity under the Inter-Club Agreement discussed in Chapter 15.3 Nevertheless, occasions arise where a shipowner may be found liable for a claim for which he will seek reimbursement from the club and be in a position to claim against, for example, charterers, stevedoring contractors, shipbuilders, ship repairers or other third parties who were the actual tortfeasors.

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