Plaintiff cargo insurer underwrote the cargo policy for the cargo owner, which entrusted the carrier to transport a shipment of steel. The carrying vessel, owned by the carrier, was underwritten by Defendant ship insurer. The vessel, when carrying the cargo, collided with another ship and sank together with the cargo. Post the incident, the ship insurer made a settlement with the carrier at a lump-sum payment of RMB9.9m to cover all affairs excluding the matter of cargo. But, later, the ship insurer paid refloatation fee and others for the carrier. Meanwhile, the cargo owner recovered the proceeds from the cargo insurer.