SUBROGATION: THE ENIGMA SIMPLIFIED FOR INSURER AND INSURED by
Mitansha Chopra
An insured must have a complete understanding of the risks
involved in transferring its rights under the rule of subrogation.
Subrogation is an important concept when it comes to understanding
the relationship between an insurer, an insured and a third party
in case of loss suffered by the insured. Will the insurer be liable
to bear the entire loss claimed by the insured? Can the insurer sue
the third party/ wrong-doer responsible for the loss suffered by
the insured? This article deals with these major questions
regarding subrogation.
What is Subrogation?
The concept of subrogation involves one person or group
substituting another in cases of insurance claims by transfer of
all the rights and duties associated with it. According to
Black's Law dictionary, subrogation is “the
principle under which an insurer that has paid a loss under an
insurance policy is entitled to all the rights
