Subrogation Flashcards
1
Q
What is subrogation?
A
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.
2
Q
What does the doctrine of subrogation do?
A
It establishes the rules that allow for the reimbursement of an insurer which has indemnified its insured under an indemnity insurance contract.
3
Q
What are the purposes of subrogation?
A
- To prevent the insured from receiving double compensation
- To enable the insurer to recoup its loss, and thereby keep the cost of insurance down.
4
Q
What are the requirements for subrogation?
A
- A valid insurance contract
- Insurer must have indemnified the insured
- Insured’s loss must have been fully compensated by the insurer
- Right must be susceptible of subrogation.
5
Q
What are the rights of an insurer under subrogation?
A
- Right of recourse against the insured for the profit the insured has received
- Entitled to prosecute the claim against the third party on behalf of the insured as dominus litis.
6
Q
What is the case for subrogation?
A
Ackerman v Loubser.
7
Q
What are the facts of Ackerman v Loubser?
A
Lawsuit for damage done to a car through a dog belonging to Loubser coming into contact with the car,