Right of Subrogation in Insurance

When will the right of subrogation apply in insurance?

The right of subrogation shall apply only to property insurance and not to life insurance. This is anchored from the idea that human life is priceless and no amount of money would compensate for its loss. Property insurance contract is basically a contract of indemnity whereby one binds himself in an agreement to indemnify the other in the case of loss. On the other hand, life insurance contract is basically not a contract of indemnity.


Is the right of subrogation dependent upon the privity of contract of insurance?

The right of subrogation is not dependent upon the privity of contract of insurance or upon written assignment of claim. The right of subrogation accrues to the insurer by operation of law or upon payment of the insurance claim by the insurer.