The right of the insurer to stand in the place of insured after the settlement of a claim and it gives…
A corollary to the principle of indemnity in fire and marine insurance, the 'Principle of Subrogation' states that once the insurer has fully indemnified the insured and…
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The right of the insurer to stand in the place of insured after the settlement of a claim and it gives the insurer right to recover from an alternative source, the principle involved in this case is called :
Answer and explanation
Correct answer B
A corollary to the principle of indemnity in fire and marine insurance, the 'Principle of Subrogation' states that once the insurer has fully indemnified the insured and settled the claim for a loss, the insurer steps into the legal shoes of the insured and acquires all rights and remedies to recover the loss from any responsible third party or alternative source.
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UGC NET Commerce