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: What are the key elements that must be present for this principle to apply in this situation ?

Answer & Explanation:

Subrogation is an equitable doctrine that has assumed statutory recognition, 'Subrogation' comes from Roman law which means substitution. In Roman Law, a creditor who lent money to the debtor for the purpose of payment of a mortgage on condition that he was to be substituted in place of the mortgagee, was entitled to claim the benefit of the security discharged with his money. This law of Roman System has now been recognized in all modern system.

Topics: Principles of Insurance

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