A cargo insurer expects the possibility: should there be a loss, of exercising subrogation rights against any carrier or other bailee legally responsible for the loss. It follows that any unusual agreement reached by the assured with his carriers, exempting them from liability, or limiting their liability, must be disclosed. “The arrangements must be unusual, so that where a lighterage contract for the carriage of cargo was obtained at a reduced freight rate, in consideration of a clause which exempted the lighterman from his usual liability as a common carrier, it was held that this was disclosable.
Finally it should be noted that it is common practice, to waive subrogation rights against carriers or bailees associated with the assured, as where a group of companies including carriers are insured under one contract of insurance. In such cases the practice is for the “Assured”, as described in the open cover, to be widely defined to include “associated and/or affiliated companies” against whom it would not be open to underwriters to exercise subrogation rights
Takis Kalogerakos
Marine Cargo Underwriter
