Subrogation in Insurance, similarities and variations against the other Institutions


Subrogation is a legal institution inherent in non-life insurance and it appears equally in motor hull insurance, MTPL insurance, Marine insurance etc. On the other hand, it is easy to assume situations where insurer discharges from further liability by settling the sum insured in full for constructive total loss and taking over salvaged remains, as well as that an insurance policy serves as colateral for receivables from contract on credit for, by the insurance policy, covered risks of loss or destruction of the interest insured etc. For this reason numerous legal institutions are in use with different purpose and producing various effects on the contract parties. Author analyzes similarities and variations among subrogation and other legal institutions used on different occasions in insurance practice, particularly common points and features that clearly separate subrogation from the institutions like abandonment, cession, recourse and loss payable clause.