Subrogation

Insurer's right, after paying a claim under the policy, to step into the insured's shoes and pursue any recovery from the wrongdoer that the insured could have pursued. The principle is codified for marine insurance in the Marine Insurance Act 1906 s.79 and is fundamental to claims handling: it prevents double recovery and allows H&M and P&I clubs to recover from the at-fault collision counterparty, the shore terminal that caused damage during loading, the bunker supplier whose off-spec fuel damaged the engine, and so on.