Purpose of Legal Subrogation

What is the purpose of legal subrogation condition in the insurance policy?

The main purpose is to hold responsible the person who caused the loss and consequently prevent the insured from unjustly enriching himself from receiving a double recovery from the wrongdoer and the insurer.

Is the insurer entitled to recover from the wrongdoer?

The insurance carrier or the insurer is warranted to recover from the wrongdoer in a suit against the latter or as a real party in interest in a suit filed by the insured. The rationale is in order for the insurer to at least recover what it has paid the insured if not fully, at least reduce the considerable amount of what it has paid the insured. Also, offenders are at least prevented from getting away from the liabilities of the loss or damage they have caused thereby upholding the public order and policy.