The Principle of Subrogation
June 16, 2008The aggrieved party has the legal right to recover from the offending party. However, if the aggrieved party has insurance on his property, claimed from and indemnified by the insurance company, the legal right to recover is transferred to the insurance company. This is called “subrogation”. Without “subrogation” the insured can still recover from the offending party; thus he could profit from his misfortune.
Once the insurance company indemnified the insured, the insured will sign a document subrogating the right to recover to the insurance company.
The principle of subrogation is applicable to contracts of indemnity only.
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u gus are assisting students.
Posted by simon ejeh at November 12, 2008, 8:53 pmejeh simon o.
ND1 Acct. Benue State Polytechnic Ugbokolo
Nigeria.