Which of the function explains the following :

After the insured is compensated for the loss or damage to the property insured by him or her then the right of ownership of such property is passed on to the insurer.

Insurable Interest

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Utmost good faith

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Indemnity

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Subrogation

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Solution

The correct option is D
Subrogation

After the insured is compensated for the loss or damage to the property insured by him or her then the right of ownership of such property is passed on to the insurer. This is because the insured should not be allowed to make any profits by selling the damaged property or in the case of lost property being recovered.

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Similar questions

Mention which function explains the following:

It is the duty of the insured to take reasonable steps to minimise the loss or damage to the insured property.

State the following statement is True or False:

The principle of insurance under which the compensation paid to the insured which is equal to the actual loss is indemnity.

Which principle states that it is the duty of insured to take reasonable steps to minimise the loss or damage to the insured property?

Name the principle of insurance for each of the following statements:

(a)The insured is expected to disclose all the important facts related to the property insured.

(b) Insured must have some economic interest in the subject matter of Insurance contract.

(d) Insured is entitled to recover the loss suffered by him, up to the limit of policy amount

It is the prime responsibility of the insured party to take reasonable steps to minimise loss/damage to the insured property. Name the principle of insurance in this scenario.

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Which of the function explains the following : After the insured is compensated for the loss or damage to the property insured by him or her then the right of ownership of such property is passed on to the insurer.

Which of the function explains the following :

After the insured is compensated for the loss or damage to the property insured by him or her then the right of ownership of such property is passed on to the insurer.