Question

Which one of the following generalisations can be drawn from the principle of subrogation?

• A. It is the principle by which the insurer, after having paid the loss to the insured, steps into the shoes of the insured person and acquires all rights and remedies as the insured would have enjoyed regarding the said loss
• B. A person who keeps a stock of inflammable material in his premises
• C. The insured can get only the compensation against the actual loss and he can't make profit out of insurance
• D. In marine insurance the immediate cause and not the remote cause shall be considered for bearing the loss

Answer 1

The correct option is A It is the principle by which the insurer, after having paid the loss to the insured, steps into the shoes of the insured person and acquires all rights and remedies as the insured would have enjoyed regarding the said loss

In principle of subrogation the insurer, after having paid the loss to the insured, steps into the shoes of the insured and acquires all rights and remedies as the insured would have enjoyed regarding the said loss.

It basically means that insurer has a legal right to claim any future gains from the property after the said loss for any recovery/settlement.