General insurance Principle of Subrogation

[Mataracy]

If an insured obtains more that the amount of his loss, the doctrine of indemnity has been breached. But certain conditions might make the insured receives more than indemnity. For instance if a third party is responsible for the loss or damage and at the same time he is adequately insured , he has the right to claim from the negligent third patty as well the insurer or if he has more than one policy on the same risk, he can decide to claim from all the insurers.

The second situation has partly or fairly be addressed by contribution, but the mist appropriate principle that deals with over indemnification is the subrogation right of the insurer. Both the principles of contribution and subrogation complements one another because they preach equity.
The principle of subrogation preached that an insured cannot receive more than indemnity. That is even if he can claim from more than one source, once his insurer has indemnify him fully, the insurer takes his right and recoup whatever is due to the insured from the third party.

 

[Mika]

Insurance is a contract between the insured person and the insurance company. The terms and conditions are explicitly written in black and white. I do not think the person receives more money than the amount insured. Why would an insurance company do that? In most cases, insurance companies try to devalue the loss.