Subrogation

Question 1

What is subrogation?

Answer 1

The substitution of one person for another so that the person substituted or subrogated succeeds to the rights of the person whose place he takes.

Question 2

What does the doctrine of subrogation do?

Answer 2

It establishes the rules that allow for the reimbursement of an insurer which has indemnified its insured under an indemnity insurance contract.

Question 3

What are the purposes of subrogation?

Answer 3

1. To prevent the insured from receiving double compensation
2. To enable the insurer to recoup its loss, and thereby keep the cost of insurance down.

Question 4

What are the requirements for subrogation?

Answer 4

1. A valid insurance contract
2. Insurer must have indemnified the insured
3. Insured’s loss must have been fully compensated by the insurer
4. Right must be susceptible of subrogation.

Question 5

What are the rights of an insurer under subrogation?

Answer 5

1. Right of recourse against the insured for the profit the insured has received
2. Entitled to prosecute the claim against the third party on behalf of the insured as dominus litis.

Question 6

What is the case for subrogation?

Answer 6

Ackerman v Loubser.

Question 7

What are the facts of Ackerman v Loubser?

Answer 7

Lawsuit for damage done to a car through a dog belonging to Loubser coming into contact with the car,