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10. Subrogation
All insurance contracts other than life insurance contracts provide for subrogation of rights after payment for both total loss46 and partial loss under the Act.47 The insurer is entitled to take over the interest of the remained subject matter for which the payment has been made in the case of a total loss. The insurer, in the case of indemnity of partial loss, would not acquire a title to the remainder of the subject matter after payment but would be subrogated to all rights and remedies of the assured in and in respect of the subject matter insured.
The right of subrogation represents the equitable rights in theory. So the basic requirement of the right is that the insurer must have paid a debt for which some others were primarily responsible, otherwise the insurer having no right of subrogation.
11. Contribution
Contribution is also called double insurance with indemnity nature. The Act says:
Where the assured is over insured by double insurance, each insurer is bound, as between himself and the other insurers, to contribute rateably to the loss in proportion to the amount for which he is liable under the contract.48
Where the insured amount is less than the insurable value, then the assured himself is deemed to be his own insurer in respect of the uninsured balance.
V. The Relevance between Sale of Goods, Carriage of Goods by Sea, Marine Insurance and Letter of Credit
International trading terms constitute the main content of the contract of sale of goods and further decide the whole proceedings of goods transaction. Under the cif contract, the seller endures the obligations to pay the cost of the goods, the marine insurance and all transportation charges to the named port of destination. The passage of property and the transfer of risks are finished when the documents are delivered. The buyer will pay the seller against the receival of the bill of lading, document of insurance and invoice rendered by the seller. But the buyer’s right to examine the goods and reject them if they are not in conformity with the contract still remains unimpaired. In other trading terms contract, delivery of goods, passage of property and transfer of risks are different. Any breach of the special terms will cause remedies under the sale of goods contract. Insurable interest in marine insurance, arrangement of carriage of goods by sea and the letter of credit are all based on the international trading terms which are included in different contracts of sale of goods.
VI. Conclusion
In conclusion, the contemporary international trade is underpinned by the elaborate trade system from the ancient practice. The uniform of trans-national trade has greatly improved by Hague Rules, Hague-Visby Rules and Hamburg Rules which have been and will be incorporated into main trade countries’ laws. The harmonization of international trade legal system is greatly increasing the certainty and confidence of the pursuers on international business transaction.
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Reference
1 Lakshman Marasinghe, Principle of International Trade Law, Butterworths, 1998, p487.
2 [1982] 2 WLR 1039.
3 100 CLR 231 (HC-Australia).
4 [1981] 3 All ER 607.
5 [1958] 2 QB 127, [1957] 2 Lloyd’s Rep549.
6 Lakshman Marasinghe, Principle of International Trade Law, Butterworths, 1998, p507.
7 Ian Stach Ltd v Baker Bosley Ltd [1958] 2 QB 130 at 138; and Baltimex etc v Metallo Chemical Refinery Co Ltd [1956] 1 Lloyd,s Rep 450, 455.
8 Lakshman Marasinghe, Principle of International Trade Law, Butterworths, 1998, p511.
9 Lakshman Marasinghe, Principle of International Trade Law, Butterworths, 1998, p258.
10 [1962] 2 QB 26.
11 FC Bradley & Sons Ltd v Federal Steam Navigation Co Ltd (1927) 27 L1 L Rep 395.
12 Lakshman Marasinghe, Principle of International Trade Law, Butterworths, 1998, p321.
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