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The purpose of this study aims to analyse the Japanese subrogation system under marine insurance contract. Subrogation is an equitable principle incident to all contracts of indemnity and to all payments on account thereof, probably arising by virtue of terms implied in such contracts. The underlying purpose of a contract of indemnity insurance is the provision of an agreed indemnity to an assured for a loss. The doctrine of subrogation is often used to describe a series of related legal principles which can be best understood as having two major functions. The first is to prevent the assured from being over-indemnified under the contract of insurance for the loss insured against, at the expense of the insurer. The second is to facilitate recoupment of the insurer for the indemnity paid to the assured-often, though not invariably, at the expense of the party responsible for causing the loss.
