On payment of a claim the insurer succeeds to the insured's rights against whoever caused the loss — the principle is stated in section 79 of the Marine Insurance Act 1906. The insurer then pursues the carrier or other third party, in the insured's name and on the insured's rights.

Why does my insurer care what my delivery receipt said?

Because the recovery runs on your rights, not theirs. A clean receipt, a missed notice period or an expired time bar reduces what the insurer can recover, and Clause 16.2 of the Institute Cargo Clauses makes preserving those rights a duty of the insured.

Can I claim from the carrier and from my insurer?

You cannot be paid twice for the same loss — insurance is an indemnity. In practice you claim on the policy, which pays the agreed insured value quickly, and the insurer pursues the carrier for whatever the convention cap allows.

Does the carrier get the benefit of my insurance?

No. Clause 15.2 of the Institute Cargo Clauses states that the insurance shall not extend to or otherwise benefit the carrier or other bailee. Carriers sometimes argue otherwise in their trading conditions; the clause exists because they do.

Subrogation: the insurer pays, then chases the carrier on your rights

Because the recovery is brought on your rights rather than the insurer's, anything you did that weakened them weakens the recovery. That is why a policy asks about a delivery receipt signed two weeks before the claim was made.

MIA 1906 s.79Clause 16 dutyClause 15.2 — not for the carrier

How it works

1.A loss happens and you claim on the cargo policy. The policy pays the agreed insured value, less the deductible, without waiting for anybody to establish fault.
2.On payment, the insurer succeeds to your rights against whoever caused the loss — section 79 of the Marine Insurance Act 1906.
3.The insurer, usually through a recovery agent, pursues the carrier, terminal or warehouse keeper, capped by whichever carriage convention governs.
4.Whatever comes back reduces the net cost of the claim, which is what your renewal is rated on.

The important asymmetry: you are paid the insured value, the insurer recovers the capped figure. The difference between the two is what you bought.

What the caps actually are →

Six things that keep the recovery alive

Clause 16.2 of the Institute Cargo Clauses makes this a duty of the insured: ensure that all rights against carriers, bailees and other third parties are properly preserved and exercised. The insurer reimburses the reasonable cost of doing it.

Claus the delivery receipt

Note the damage on the receipt at the moment of delivery. A clean receipt creates a presumption in the carrier's favour that the goods arrived in apparent good order, and rebutting it afterwards is expensive.

Give written notice inside the convention window

Three days for non-apparent damage by sea, seven days under CMR, fourteen days for damage to air cargo, fifteen consecutive days under the Hamburg Rules. These run from delivery, not from the day somebody opened the carton.

Hold the carrier liable in writing

A short letter reserving your rights, sent to the carrier and to any intermediate bailee. It costs nothing and it is the document a recovery agent will ask for first.

Do not sign away recourse

Trading conditions and settlement offers sometimes ask you to waive claims against the carrier. Signing one after a loss can be a breach of the duty in Clause 16.2 to preserve rights against third parties.

Preserve the goods and the evidence

Do not move, repack or dispose of damaged cargo before the survey. The surveyor's report supports both the claim and the recovery, and once the evidence is gone neither can be rebuilt.

Watch the time bar

One year under Hague-Visby, COGSA, CMR and CIM; two years under the Hamburg and Montreal Conventions. A time bar extinguishes the right, and under Montreal it cannot be paused.

Time bars by regime

The period within which suit must be brought against the carrier, taken from each convention. Missing it extinguishes the right entirely.

Regime	Time bar	Article
Hague-Visby Rules	One year from delivery, or from the date the goods should have been delivered. Extendable only by agreement.	Article III rule 6
Hague Rules	One year from delivery or from the date of intended delivery.	Article III rule 6
Hamburg Rules	Two years, which is twice the Hague-Visby period.	Article 20
US COGSA	One year from delivery or from the date of intended delivery.	Section 3(6)
CMR (road)	One year. Three years where the loss was caused by wilful misconduct, or by default treated as equivalent to wilful misconduct under the law of the court seised.	Article 32
CIM / COTIF (rail)	One year. Two years in defined cases, including a claim based on loss caused with intent to cause the loss.	Article 48
Montreal Convention (air)	Two years from arrival, from the date the aircraft ought to have arrived, or from the date carriage stopped. This is a hard extinction of the right, not a limitation period that can be paused.	Article 35
Warsaw Convention (air)	Two years.	Article 29
CMNI (inland waterway)	One year from the day the goods were delivered or should have been delivered.	Article 24
Carmack Amendment (US domestic)	A minimum of two years from the carrier's written declination, again as a floor.	49 U.S.C. § 14706(e)

Common questions

What is subrogation?: On payment of a claim the insurer succeeds to the insured's rights against whoever caused the loss — the principle is stated in section 79 of the Marine Insurance Act 1906. The insurer then pursues the carrier or other third party, in the insured's name and on the insured's rights.
Why does my insurer care what my delivery receipt said?: Because the recovery runs on your rights, not theirs. A clean receipt, a missed notice period or an expired time bar reduces what the insurer can recover, and Clause 16.2 of the Institute Cargo Clauses makes preserving those rights a duty of the insured.
Can I claim from the carrier and from my insurer?: You cannot be paid twice for the same loss — insurance is an indemnity. In practice you claim on the policy, which pays the agreed insured value quickly, and the insurer pursues the carrier for whatever the convention cap allows.
Does the carrier get the benefit of my insurance?: No. Clause 15.2 of the Institute Cargo Clauses states that the insurance shall not extend to or otherwise benefit the carrier or other bailee. Carriers sometimes argue otherwise in their trading conditions; the clause exists because they do.

Deadlines by mode How to file a claim

Sources

This page summarises the instruments above. It is not the wording, and it is not legal advice. Where a summary conflicts with a convention text, a policy wording or a certificate, that document governs.

InsuranceScanner is an insurance intermediary, not an insurer — see the Terms for our role. Nothing here is a personal recommendation that a particular cover, sum insured or deductible is suitable for you. Where anything on this page conflicts with the certificate, policy schedule or wording issued by an insurer, that document governs.