Mataracy
VIP Contributor
Subrogation can be defined as the right of one Peron, having indemnified another under a legal obligation to do so , to stand in the place of the other and avail himself of all the rights and remedies of that other, whether already enforced or not.
It therefore implies that the insured is entitled to indemnity but not more than that. Subrogation allows the insurer to prevent the insured from making a gain out of his loss as any profit the insured might make from an insured event is retrieved from him by way of subrogation. It is also wrong for an insurer to make more than he has paid under the policy. If more money is recovered from the third party more than the amount of indemnity paid by the insurer. The insured is entitled to the balance.
The inaured may therefore receive a full indemnity but may later succeed in receiving more than the claim payment from third party though value may remain the same.
It therefore implies that the insured is entitled to indemnity but not more than that. Subrogation allows the insurer to prevent the insured from making a gain out of his loss as any profit the insured might make from an insured event is retrieved from him by way of subrogation. It is also wrong for an insurer to make more than he has paid under the policy. If more money is recovered from the third party more than the amount of indemnity paid by the insurer. The insured is entitled to the balance.
The inaured may therefore receive a full indemnity but may later succeed in receiving more than the claim payment from third party though value may remain the same.
