THE USE OF OTHER DOCUMENTS TO PROVE THE SUBROGATION OF THE MARINE CARGO INSURER
In cases where the subrogation letter is absent, the insurer who submits to the debate a copy of the insurance policy, accompanied by a dispatch of his agent and cheques or transfer orders provided an ideal subrogation folder.
It is safe to say here that except from the subrogation letter, subrogated recovery can be justified by other documents such as: cheques and transfer orders.
The cheque is an unconditional written order to pay a specified amount of money to the payee (beneficiary). It is also a document by which the client of a bank orders his banker or a financial institution to pay a fixed sum either for his benefit or for the benefit of a third party. In this case, the insurer who has a guarantee obligation to his insured is compelled to give an unconditional written order to his bank or a financial institution to pay a specified sum in favor of his insured, victim of damage covered by an insurance policy following a transport operation. The main requirement here is that the cheque should not be blank; it must be a cheque that has provisions that will actually allow the insured to turn this page.
Except from the cheque, the subrogated insurer may also hold proof of bank transfer, that is, a transfer order. Bank transfer is the most widely used method of payment internationally. The buyer (the marine insurance company) orders his banker to pay his creditor (the insured) by bank transfer. It is a cheap, safe and fast method of payment, thanks to the telex and especially to the Swift transfer. The Swift system is a remote transmission network that eliminates the distances between the banks of the different countries connected by this system. It allows a fast and inexpensive payment. However, it does not include any guarantee of payment and, as such, must be used between business partners maintaining trust relationships. So once the transfer is made or the amount of the cheque paid, the insurer is now subrogated in the rights of his insured. It only remains for him to complete with the documents raised that is to say the valid insurance policy and the dispatch of his agent to obtain an ideal file and go against the real author of the damage so as to be refunded. He can now exercise his recourse within the limits imposed by law.
