MANAGEMENT

Detailed explanation-1: -To prevent the insured from collecting twice for the same loss. To hold the negligent person responsible for the loss.

Detailed explanation-2: -Subrogation. When insureds accept loss payment from the insurance company, they must transfer their rights to recovery to the insurer. This prevents the insured from collecting twice for the same loss, and allows the insurer to indemnify the insurance company.

Detailed explanation-3: -Subrogation allows your insurer to recoup costs (medical payments, repairs, etc.), including your deductible, from the at-fault driver’s insurance company, if the accident wasn’t your fault. A successful subrogation means a refund for you and your insurer.

Detailed explanation-4: -Principle of subrogation refers to the practice of substitution of a person or group by another in cases of debt claims in insurance. Subrogation is an important component of indemnity principle, which is a differentiating factor between a commercial contract and an insurance contract.

Detailed explanation-5: -Subrogation means substituting one creditor for another. In insurance contracts, except for personal accidents, health, and life, subrogation applies to recover the loss from the errant party.