Question

Identify the principle of insurance which means the insurer gets all the rights against the third party with respect to the subject matter insured, after compensating the loss of the insured. Also tell in which type of insurance it is not applicable. Explain any two functions of insurance​

Answer 1

Answer:

Subrogation means one party stands in for another. As per this principle, After the insured, i.e. the individual has been compensated for the incurred loss to him on the subject matter that was insured, the rights of the ownership of that property goes to the insurer, i.e. the company.