Technology Swiss Pty Ltd v AAI Ltd, trading as Vero Insurance – Fed Ct of Australia (Allsop CJ) [2021] FCA 95 – 12 February 2021

Marine insurance – Cargo policy – Subrogation and recoupment – Under-insurance – Insurer disputing quantum of insured’s claim – Insurer paying insured AUS$425,000 to settle claim – Insured subsequently recovering significantly greater sum from contractual carrier – Quantification of insurer’s entitlement to recoupment

The respondent (Vero) was the insurer of a cargo of fog cannons shipped by the applicant (TS) from Melbourne to Bangkok on board the vessel CMA CGM Quartz. The insurance policy had a limit of indemnity for exports of AUS$500,000 for any one conveyance or location, with an excess of AUS$250 each and every loss. The CIF value of the cargo was AUS$770,095.58.