sukharn has taken fire insurance for his factory. due to fire he suffered a loss of Rs.2 lakhs and he gets the compensation for the same. the half burnt goods can be sold for Rs.30, 000 who has the right over it ?why?
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Hey!!
The insurer has the right over it.
This is because of the principle of SUBROGATION, this says that it is the right of the insurer to stand in the place of the insured, after settlement of a claim.
After the insured is compensated with the loss to the property insured by him/her, the right of ownership of such property passes on to the insurer.
Therefore, in this case, the residues amounting Rs.30000 rightly belongs to the insurer.
Hope this helps you!!
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