Under which clause would insurers pay a proportion of the loss when a claim is also covered by another insurer?

The concept of contribution refers to the principle under which multiple insurers share the liability for a claim when an insured has coverage under more than one policy for the same loss. If a policyholder suffers a loss that is covered by two or more insurance contracts, the insurers involved will each pay a portion of the claim, typically in proportion to the limits of their respective policies.

This principle ensures that the insured is not reimbursed more than the total loss, as it maintains fairness among the insurers and prevents the insured from profiting from the claim. Therefore, when a loss is triggered and multiple policies apply, contribution becomes the guiding rule for determining how much each insurer will pay, reflecting their share of the coverage.

In contrast, the indemnity principle deals with restoring the insured to the financial position they were in prior to the loss, while salvage involves recovering lost assets or reducing the claim amount through the sale of damaged property. Subrogation allows insurers to pursue a third party that caused the loss after they have compensated the insured. Each of these concepts plays a different role in the insurance process, but in the context of sharing claim payments between insurers, contribution is the relevant clause.