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 potential benefits of this principle for both the insurer and the insured ?

Answer & Explanation:

The doctrine of subrogation is an essential attribute of a contract of indemnity and general insurance, is akin to the contract of indemnity, therefore, applicable. In insurance law subrogation is the name given to the right of the insurer who has paid a loss to be put in the place of the assured so that he can take advantage of any means available to the assured to extinguish or diminish the loss for which the insurer has indemnified the assured.

Topics: Principles of Insurance

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