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CHAPTER 9 SUBROGATION

Insurance Disputes

9 SUBROGATION NEIL BERESFORD AND JON TURNBULL 1. THE PRINCIPLES OF SUBROGATION Legal basis Page 233 9.1 Subrogation is a legal institution by which underwriters, having paid an indemnity, become entitled to pursue an action in the name of the assured to enforce the rights and remedies of the assured. It arises in all classes of indemnity insurance 1 including marine insurance, 2 non-marine insurance 3 and reinsurance. 4 In Simpson v Thomson , Lord Cairns described subrogation in the following terms 5 :

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