Subrogation in Marine Insurance

Subrogation in marine insurance occurs when an insurance company pays a claim for damage or loss to a ship or cargo, and then gains the legal rights to pursue recovery from third parties responsible, such as another vessel's owner or a shipping company, who caused the damage. This process allows the insurer to recoup their payout, preventing the insured from collecting twice. Essentially, once they've compensated the insured, the insurer steps into their shoes to seek restitution from the liable party, ensuring fair distribution of loss and discouraging negligence.