There are some principles on which Insurance Act and Rules framed. What do you know about: Principle of Subrogation.

The principle of subrogation derives from the fundamental doctrine of indemnity in insurance law, which states that insurance should restore the insured to their financial position before the loss, no more, no less. Subrogation supports this by preventing policyholders from profiting through multiple recoveries for the same loss, thereby preserving the indemnity principle. Legally, subrogation rights automatically transfer to insurers upon claim payment in most jurisdictions, though the specific implementation varies across legal systems. This principle creates an equitable balance within the insurance ecosystem by shifting the financial burden of a potential loss to a third party. Most insurance contracts explicitly include subrogation clauses that oblige policyholders to cooperate with recovery efforts and refrain from actions that might prejudice the insurer's recovery rights, such as settling directly with or releasing claims against the at-fault party without the insurer's consent. Subrogation refers to the legal right of an insurance company to pursue a third party that caused an insurance loss to the insured. After the insurer has compensated the policyholder for the loss, it essentially "steps into the shoes" of the policyholder and assumes their right to legal action against the responsible party. This principle prevents double recovery by the insured while enabling insurers to recoup their pay-outs, ultimately helping to keep insurance premiums more affordable for all policyholders by offsetting claim costs through recovery actions.