Doctrine of subrogation & contribution

Question 1

What is subrogation

Answer 1

Insurer claims against third party for damage caused to insured

Question 2

John Edwards v Motor Union

Answer 2

States that the principal of subrogation is that it does not become operative until actual payments are made by the insurer

Question 3

Morris v Ford Motor

Answer 3

Court held that where the risk of a servant’s negligence is covered by insurance, his employer can’t seek to make him liable nor can subrogation occur

Question 4

Page v Scottish Corpn

Answer 4

Insurers had no right to be subrogated to because they had not settled in all the clad under the policy relating to the accident

Question 5

Scottish Union & National insurance v Co

Answer 5

Insurer couldn’t claim under subrogation because despite them making payment they did not settle policy requirements which included fixing the car

Question 6

HSBC Rail(UK) v Network Rail

Answer 6

Insurer is only able to sue under the insured’s name

Question 7

Simpson & Co v Thompson

Answer 7

Insurers can’t claim under subrogation where the property and cause of damage are both owned by the insurer thus insured can’t sue themself

Question 8

Castelliain v Preston

Answer 8

An insurance policy is a contract of indemnity thus insurers can only recover what they paid to the vendor

Question 9

What’s Contribution

Answer 9

This is where insured takes out more than one policy on the same risk thereby giving the insurers an option to each contribute to the loss
Contribution exist were more than one policy exit at the same time

Question 10

Yorkshire insurance v Nisbet Shipping

Answer 10

Insurers can’t recover more than they paid the insured from the insured

Question 11

The Sea insurance v Hadden

Answer 11

Abandonment entitles the insurers to every benefit the insured’s entitled to in respect of the contract but nothing more