Q.Explain the principle of Subrogation with an example.

Subrogation exists specifically to prevent an insured from being paid twice for the same loss — once by the insurer, and again by whoever actually caused the loss. …

Subrogation means that once an insurer has paid a claim under a contract of indemnity, it acquires (steps into) the insured's legal right to recover that same loss from any third party who was actually responsible for causing it. This prevents the insured from being compensated twice for one loss — once by the insurer under the policy, and again by the responsible third party — which would give the insured a profit from the loss, contrary to the principle of indemnity. …

Confusing Subrogation with Contribution — subrogation concerns recovering from a THIRD PARTY responsible for the loss, while contribution concerns MULTIP …