Sarthak has taken a fire insurance policy for the warehouse. Due to fire, he
suffered a loss of Rs. 500000 and gets compensation claim from the insurance
company. The damaged stock can be sold for Rs.15000. Who has the right over
this amount? State the relevant insurance principle in this regard.
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Answer:
The insurance company has the right over the amount realised by selling the half burnt goods after it has paid compensation for the less to the insured. Sukram cannot make any profit by selling the half burnt goods. (Principle of subrogation
Answer:
insurer ie, insurance company has the right over damaged stock.
Principle of subrogation