i-law

Marine Insurance Law


Page 396

Chapter 13

Subrogation

Özlem Gürses

Definition


Page 397

A person who has taken out a marine insurance policy may also have a claim against a third party if loss has been caused by him. In such a case the assured will have two remedies, one from the insurer and one from the third party. If the assured makes his first claim against the third party the latter cannot argue that the assured first must claim from the insurer. Moreover, in assessing damages recoverable from the third party the proceeds of insurance are to be disregarded.1 If the assured first directs his claim to the insurer, the insurer cannot refuse to indemnify the assured since the assured may have distinct rights against some other persons.2 In such a case the assured may obtain a double recovery. He may first recover his loss from the insurer whose payment will not discharge the third party from his liability to the assured. Otherwise the third party would be permitted to take advantage of an insurance contract under which he did not pay any premium.

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