Mr. Sharma insured his goods in a warehouse against fire with XYZ Insurance Company. The goods were burnt and Mr. Sharma recovered the full value of ₹10,00,000 from the insurance company. Subsequently Mr. Sharma also sue

Principle of Subrogation: Subrogation is an equitable doctrine now assumed statutory recognition, 'Subrogation' comes from Roman law which means substitution. 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. Subrogation means substitution of one person for another. The doctrine of subrogation confers upon the insurer the right to receive the benefit of such rights and remedies as the assured has against third parties in regard to the loss to the extent that the insurer has indemnified the loss and made it good. According to the doctrine of subrogation in a contract of indemnity, an insured cannot be allowed to make any profit from an insurance claim. Mr. Sharma cannot take benefit of an insurance policy as well as any other alternative remedies. Based on the above principle, Mr. Sharma ought to return a sum of ₹10,00,000 to the insurance company.