How Subrogation Works in Marine Insurance
Example of Subrogation
Subrogation Process for the Insured
Benefits of Subrogation
Waivers of Subrogation
Key Things to Remember about Subrogation in Marine Insurance
- Subrogation permits insurers to sue third parties after compensating the policyholder for the claimed amount.
- Subrogation is crucial in marine insurance due to valuable goods and multiple parties involved in shipping.
- Marine insurance policies often include the right of subrogation.
- The insured can waive the right of subrogation, and in such cases, the insurer may charge a fee.
- Laws like the ‘package limitation’ may restrict the right of subrogation, limiting carrier liability for cargo loss/damage.
- In marine insurance, subrogation lets the insurer sue a third party responsible for covered loss or damage.
- Insurers may choose to forgo subrogation if they project that the costs of recovery will exceed the loss amount or if the third party is insolvent.
- Insurance company with a well defines subrogation acts can offer a policy at lower premium.
About The Author
Simran
MBA Insurance and Risk
With extensive experience in the insurance industry, Simran is a seasoned writer specializing in articles on marine insurance for SecureNow. Drawing from 5 years of expertise in the field, she possesses a comprehensive understanding of the complexities and nuances of marine insurance policies. Her articles offer valuable insights into various aspects of marine insurance, including cargo protection, hull insurance, and liability coverage for marine-related risks. Renowned for their insightful analysis and informative content, Simran is committed to providing readers with actionable information that helps them navigate the intricacies of marine insurance with confidence.