Chapter 10

Question 1

Define Subrogation

Answer 1

The right of one person, having indemnified another under a legal obligation to do do, to stand in the place of that other and avail himself of all the rights and remedies of that other, whether already enforced or not

Question 2

What is unjust enrichment?

Answer 2

Preventing someone from profiting from a loss and to preserve the principle of indemnity

Question 3

Nature of Subrogation case example

Answer 3

Castellain v Presto 1883

A doctrine in favour of the underwriters or insurers in order to prevent the insured from recovering more than a full indemnity

House fire/house sale example

Question 4

Give two examples of insurance that Subrogation doesnt apply to

Answer 4

Life insurance

Personal accident

Question 5

The insured is only accountable to the insurers if he has been idemnified for his loss

Case example

Answer 5

Scottish union and National insurance v Davies (1970)

Car not repaired example

Question 6

Explain express Subrogation

Answer 6

Allows insurers to begin proceedings against a TP before they have settled the insured own claim. Giving the insurers the right to control the proceedings

Question 7

Recovery greater than the loss example

Answer 7

Yorkshire insurance co Ltd v Nisbet Shipping co Ltd 1962

Interest on ship payout

Question 8

Source of Subrogation rights, provide the 3 examples

Answer 8

Tort

Contract

Statute

Question 9

Example of contract in Subrogation rights

Answer 9

Property insurers paying claim then look to rights of recovery against a tenant of the insured who is legally responsible for the damage under the terms of the lease

Question 10

Statute example in Subrogation rights

Answer 10

Riot compensation act 2016

Allows an insurer to sue the relevant authority in their own name

Question 11

Subrogation rights example

Answer 11

Lister v Romford Ice and Cold Storage Ltd 1957

Father son injury at work

Sons negligence

Question 12

Court of appeal refusing Subrogation case study example

Answer 12

Morris v Ford Motor Co 1973

Public policy

Question 13

Define Contribution

Answer 13

The right of an insurer to call upon others similarly, but not necessarily equally liable to the same insured, to share the cost of an indemnity payment

Question 14

Conditions which must be satisfied before contribution can arise

Answer 14

Each policy is liable for the loss
Each insures the same interest in the subject matter
Two or more policies of indemnity exist
Each insurers the subject matter of the loss
Each insurers the peril which brings about the loss

Question 15

Two or more policies of indemnity example

Answer 15

Body Corporste 74246 v QBE insurance and Allianz Australia Ins (2017)

Earthquake

50% Contribution request

Seamless view

Contribution not agreed

Question 16

Common interest case study

Answer 16

North British and Mercantile Insurnace Co v London Liverpool and Globe Insurance Co (1877)

Grain

Different interests, Bailee and owner of the grain

Question 17

What’s an escape clause

Answer 17

Condition that forbids the insured from taking out another policy with the consent of the insurers

Question 18

Case study regarding No- Contribution payout

Answer 18

Gale v Motor Union Insurance Co Ltd 1928

Any driver
Driving other vehicles extension

Both policies excluded liability for losses that were insured elsewhere but the judge ruled that the loss should be shared equally by the two insurers