Mataracy
VIP Contributor
Contribution is the right of an insurer yo call upon others who have insured the same subject matter of insurance yo share the cost of an indemnity payment. That is full indemnity must have been paid before it can recoup an equatable proportion from other insurers of the risk.
Contribution will not apply unless the following conditions is met.
(1) Two or more insurers must insure the risk
(2)The policies must cover the sane interest i.e. if Mr. Fecon is the owner of the first policy, he must be the owner of the other policies.
(3) The policies must cover a common peril which gave rise to the Loss's.
(5) The policies must be on the same subject matter of insurance.
(6) Each policy must be liable for the loss.
In other to test the legal effects of contribution, a friendly action must be brought by one insurer against the other. Remember a contribution is a supporting of indemnity.
Contribution will not apply unless the following conditions is met.
(1) Two or more insurers must insure the risk
(2)The policies must cover the sane interest i.e. if Mr. Fecon is the owner of the first policy, he must be the owner of the other policies.
(3) The policies must cover a common peril which gave rise to the Loss's.
(5) The policies must be on the same subject matter of insurance.
(6) Each policy must be liable for the loss.
In other to test the legal effects of contribution, a friendly action must be brought by one insurer against the other. Remember a contribution is a supporting of indemnity.
