Page 230 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

claim from each insurer his rate able proportion and
thus save him from paying the entire loss and then
collecting the contribution from the other insurers. In
effect, the condition establishes agreement amongst
all the interested insurer parties before the settlement
of loss.

k. Subrogation - If the insurer is able to recover the whole
or part of his loss from a third party responsible for the
loss, then the indemnity payable by the insurer is then
reduced by that extent. Subrogation also means the rights
of recovery of loss from the third party responsible for
the loss are transferred to the insurers, who may recover
the loss from the party concerned.

The condition in Fire Insurance policy modifies the
Common Law aspect. The Common Law right of
subrogation accrues to the insurers only after the insured
is indemnified in respect of his loss.

This condition provides that the subrogation take place

much before indemnification. This is necessary to enable

the insurers to act quickly against the third parties, and

trying to ensure that their rights of recovery are not

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