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Subrogation: risk allocation

Insurance Law Monthly

Subrogation: risk allocation

The Court of Appeal in Herculito Maritime Ltd and Others v Gunvor International BV and Others (The Polar) [2021] EWCA Civ 1828 has affirmed the first instance judgment of Sir Nigel Teare on issues arising out of the insurance arrangements in a charterparty. The main questions were: had the shipowners agreed to grant immunity to the charterers for general average contributions by accepting an obligation to insure against piracy risks with the charterers paying the premiums; and if there was such immunity, did it extend to the holders of the bills of lading.

Herculito : the facts

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