Page 24 - Motor Insurance Ebook IC 72

The Insurance Times

is insured by a package policy. In case the insurer of
vehicle 'A' settle the own damage claim of vehicle 'A',
it accrue the right of the insured to claim against the
vehicle 'B' to the extent of the claim amount.

This happens because of the subrogation right accrued
to the insurance company on settlement of the claim.

However, in India, due to prevalent of knock for knock
agreement amongst public sector insurance companies,
in case of collision between two vehicles giving rise to
own damage claim, respective insurer of the vehicles
will settle claim of their respective vehicle, and will
not resort to claim against the other based on the extent
of negligence for the accident, though the same is
permissible under the doctrine of subrogation.

Therefore, the doctrine was diluted to the extent noted
above, as a industry practice for the purpose of own
damage claim.

So far as claims under Liability Only policy is concerned,
a duty has been cast upon the Tribunal to apportion the
negligence as well as liability amongst the tort-feasor
under Motor Vehicles Act 1988, thus the principles of
subrogation becomes ineffective

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