Original scientific paper
Insurer's right to subrogation and to a wreckage in case of abandonment
Marin Kružičević
; Slavija Lloyd, Zagreb
Abstract
Provisions of the Yugoslav Maritime Law dealing with the insurer's rights to subrogation and to a wreckage in case of abandonment are not precise enough and may give rise to varied interpretation. On some important issues they are actually silent.
The author suggests answers to some questions arising in cases where the insured value is lower than the value on which recovery from the third party has been effected. His view is that Yugoslav law is almost identical to English law and should be interpreted in the same way.
Abandoned property may be subject to mortgagee's rights and maritime liens. These claims have preferential rank. Such payments against liabilities which are otherwise covered by the terms of the insurance policy (salvage, salvage charges, sue and labour expenses, maintenance of the abandoned ship after abandonment) should definitely stay with the insurer. For payments against other liabilities of the insured arising ex contractu before accident (mortgage etc.) the insured should compensate the insurer.
Keywords
insurer's right to subrogation; wreckage; abandoned property; abandoned ship;
Hrčak ID:
214903
URI
Publication date:
18.12.1989.
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