Insurance guide - subrogation

UK Principles of Insurance - Subrogation

There are five basic legal principles of insurance that must be seen to apply before the policy is valid - Insurable Interest, Indemnity, Umberrima Fides, Subrogation and Contribution.

Subrogation - This means that an insurer who has sustained a loss under a policy of indenimity is entitled to avail himself of any rights the insured had against the third party who caused the loss or damage. In other words, should a third party be responsible for the events leading to the loss by the insured, the insurance company having compensated him, is entitled to make a claim against the third party, using the name of the insured person in many cases.

Another aspect of subrogation is that the insurance company is entitled to salvage any of the property or goods that were damaged by the event, where possible, and where possible to sue any third party who was responsible for the loss for the balance of the compensation.

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