New Register here for RBI, SEBI & NABARD strategy workshop! April 9 at 7 PM

    Question

    What does "subrogation" mean in the context of

    insurance?
    A The insured's right to choose any repair shop. Correct Answer Incorrect Answer
    B The insurer's right to recover losses from a third party. Correct Answer Incorrect Answer
    C The obligation of the insured to mitigate losses Correct Answer Incorrect Answer
    D The duty of the insurer to settle claims promptly. Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Subrogation is the right of the insurer, after paying a claim to the insured, to step into the shoes of the insured and pursue legal action against a third party who may be legally liable for the loss.

    Practice Next