Page 23 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

indemnity, which typically arises when a loss was caused
to the insured property, due to the negligence of another
person, to whom the insured could have sued for the
loss in ordinary course, but prefer to claim against the
insurance company in pursuance to a contract of
insurance. In such a circumstances insurance company
accrue the right of the insured to sue the person
responsible for the loss to the extent of compensation
paid.

Doctrine of subrogation is one of the most important
ingredient and essential features of the principles of
indemnity, which, distinguish an ordinary commercial
contract from an insurance contract.

This principle is equally applicable to motor policy in the
same manner and same force as it is applicable to other
policy. Motor policy in India provides for a condition of
subrogation.

For example in case vehicle 'A' hit vehicle 'B' resulting
in damage to the vehicle 'B', the owner of the vehicle B
had a right to claim damages from the owner of the
vehicle 'A'.

At the same time he had a right to claim compensation
for accidental damages to his vehicle in case the same

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