Monday, June 16, 2008

The Principle of Subrogation

The aggrieved party has the legal right to recover from the offending party. However, if the aggrieved party has insurance on his property, claimed from and indemnified by the insurance company, the legal right to recover is transferred to the insurance company. This is called “subrogation”. Without “subrogation” the insured can still recover from the offending party; thus he could profit from his misfortune.


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