Principle Of Subrogation Insurance. Based on the principle of subrogation, once the insured is compensated for the losses as a result of injury to his insured property, then. Subrogation is a right where a person has the standing in the place of another and availing himself of all the rights and remedies of that another, whether already enforced or not.
The doctrine of subrogation has its roots in equity. By using subrogation, an insurance company can recover the amount of the insurance claim paid to the insured client from the party that caused the damage. Principle of subrogation means substituting one creditor for another.