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April 2018 Q3 subrogation

J

JayR

Member
Hello,

I am still confused about the difference between salvage and subrogation.
I thought salvage was to do with property, e.g. the remains of a car or marine vessel and subrogation was when the insurer became legally responsible and could make recoveries through court proceedings.

In Q3, it seems subrogation is counted as the remains of damaged machinery and scrap from downed aircraft. I thought this is classed as salvage and not subrogation.

Please could someone explain this.

Thank you
 
The two are related. Subrogation is the legal transfer of rights and responsibilities, think of it as just a legal mechanism. Let's take an example of cargo washed up on a beach. You might think that this belongs to the insured. But subrogation means that it now belongs to the insurer, who can sell it and make salvage recoveries.
 
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