Dileep Sharma has an insurance policy with Active Insurance Ltd. His car got damaged in an accident caused by another vehicle of Raja, whose vehicle is insured with Robust Insurance Co. Ltd. Dileep incurred an expenditur
CS Professional · Banking and Insurance - Laws and Practice · PYQS · December 2025
Dileep Sharma has an insurance policy with Active Insurance Ltd. His car got damaged in an accident caused by another vehicle of Raja, whose vehicle is insured with Robust Insurance Co. Ltd. Dileep incurred an expenditure of ₹ 25,000 for repairs of his car, which he claims and receives from Active Insurance Ltd. In this situation, answer the following: Under what legal principle does Active Insurance Ltd have the right to pursue Robust Insurance Co. Ltd or Raja for the cost of the repairs ?
Answer & Explanation:
Active Insurance Ltd have the right to pursue Robust Insurance Co. Ltd or Raja to recover the cost of the repairs under the doctrine of subrogation. The doctrine confers upon the insurer the right to receive the benefit of such rights and remedies as the assured has against third parties about the loss to the extent that the insurer has indemnified the loss and made it good. Subrogation means substitution of one person for another.
Topics: Principles of Insurance
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- Dileep Sharma has an insurance policy with Active Insurance Ltd. His car got damaged in an accident caused by another ve...
- Dileep Sharma has an insurance policy with Active Insurance Ltd. His car got damaged in an accident caused by another ve...