Right To Subrogation

RIGHT TO SUBROGATION
A rough research proposal submitted in partial fulfilment

of the course of Property law during the academic session
2018-22, Semester III
Submitted by: Aanchal
Roll no: 181602
B.B.A. LL.B.(Hons.)
Submitted to: Mr. BRN Sharma
Property law I
August 2018
Chanakya National Law University, Mithapur, Patna,

800001
1
A. INTRODUCTION
Subrogation is the right or rights of the insurer to assume the rights of the insured. Legal
rights or to step into the shoes of. Rights of subrogation can arise two different ways:
automatically as a matter of law, or by agreement as part of a contract. Subrogation by
contract commonly arises in contracts of insurance. Subrogation as a matter of law is an
equitable doctrine, and forms part of a wider body of law known as unjust enrichment. Two
areas where subrogation is relevant are insurance and sureties. In each case, the basic premise
is that where one person (i.e. typically an insurer or a guarantor) makes a payment on an
obligation which is the primary responsibility of another party, the person making the
payment is subrogated to the claims of the person to whom they made the payment with
respect to any claims or remedies which are exercisable against the primarily responsible
party. For example, if a car owner has collision insurance coverage on his car and the car is
damaged by a negligent third party, and if the car owner elects to claim under his or her
insurance policy, then any claims which the car owner had against the negligent party will
pass to the insurance company in jurisdictions which recognise the doctrine. Similarly, if a
father guarantees the debts of his son to the bank (i.e. a contract of suretyship), and the bank
elects to call upon the guarantee rather than claiming against the son directly, and the father
pays out on the guarantee, the father will become subrogated to the bank’s claims against the
son. The doctrine of subrogation can also pass proprietary rights such as a security interest or
claim to ownership of goods. If a work of art is stolen, and the insurance company pays out
under a policy of insurance to the owner and the art is later recovered, the art will belong to
the insurance company under rights of subrogation. Similarly, if an insured ship sinks, the
rights of salvage will pass to the insurer if the claim is paid out as a total loss. If a guarantee
is paid out by a guarantor and the bank also held a mortgage over the debtor’s home, the
guarantor will be subrogated to the bank’s rights as a mortgagee with respect to the debtor’s
home. In many areas where subrogation arises as a matter of law, subrogation may be limited
under the terms of the relevant contract. For example, in a contract of guarantee, the
guarantee will often provide that the guarantor waives the right of subrogation or agrees not
to exercise it unless the bank has been paid in full. In an insurance contract, in addition to
right of subrogation at law, there will often be a right of subrogation bolstered by the insured
party’s agreement that the party will provide all necessary assistance to the insurance
company in pursuing any subrogated claims. Subrogation is sometimes misunderstood by lay
people and criticized on the basis that payment under an insurance claim is simply a right
2
based upon the payment of insurance premiums, and a belief that they should also retain a
right to exercise any claims arising from the insured event. An insurance contract is a contract
of indemnity, however, and to allow a party to receive insurance proceeds and claim against
third parties would mean that the recipient might recover more than the total loss. Because
subrogation operates to prevent such over-recovery, it is considered to form part of the
general law of unjust enrichment (i.e. preventing a party by being unjustly enriched by
pursuing a claim for a loss in respect of which they have already been indemnified).
Subrogation is an equitable remedy and is subject to all the usual limitations that apply to
equitable remedies. Although the basic concept is relatively straightforward, subrogation is
considered to be a highly technical area of the law.
B. OBJECTIVE OF THE STUDY:
The aim of researcher is to:
1. To gain knowledge about the topic.

2. Read and analyse the given topic.
3. Give the detailed information
C. HYPOTHESIS:
This paper would focus on If you are involved in any aspect of the real estate
business, sooner or later you will come across the term, "subrogation." Most often it
appears in leases, but you may also find it in mortgages, insurance policies,
guarantees and other agreements. The phrase may appear in a document where a party
agrees to "waive his right of subrogation," or where it is stated that one party is
"subrogated to the claims of another."
RESEARCH METHODOLOGY
1. Doctrinal method :- Books, internet, journals, judgements etc.
2. Researcher will mainly rely on library based study.
3. The researcher would like to follow doctrinal research methodology.
D. SOURCES OF DATA COLLECTION:-
1. Primary sources- Judgements of apex court, provisions of Transfer of
Property Act, statute, precedent & other official document.
3
2. Secondary sources- statement of judges, websites, articles, news paper,
books, journals etc.
E. LIMITATION & SCOPE OF THE STUDY.

Due to lack of time, finance and lack of resources my research work is
wholly based on doctrinal method of research, my research work doesn’t
rely on non-doctrinal research or empirical research.
F. Tentative Chapterization.
1. Introduction.
2. Historical Perspective
3. Kinds of Subrogation
4. Indian Courts on Section 92
5. Analysis of Cases.
6. Conclusion & Suggestion.
BIBLIOGRAPHY.
Books:
1. Transfer of Property Act- S.K. MALLIK
2. Transfer of Property Act- Mulla
3. Property Law- Dr. Poonam Pradhan Saxena.
Article:
1. Charles Mitchell; Stephen Watterson (2007). Subrogation (1st ed.). Oxford

University Press. ISBN 9780199296644.
2. Henry Newton Sheldon (2017). The Law of Subrogation (1st ed.). Andesite
Press. ISBN 978-1375572576.
4
Websites:
 https://indialawyers.wordpress.com
 https://Manupatra.com
 https://lexisnexis.com
 https://www.essay.uk.com/free-essays/law/subrogation-transfer-property-
act.php

Right To Subrogation

Uploaded by

Copyright:

Available Formats

Right To Subrogation

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Right To Subrogation

Uploaded by

Copyright:

Available Formats

RIGHT TO SUBROGATION

A rough research proposal submitted in partial fulfilment

Submitted by: Aanchal

Roll no: 181602

Submitted to: Mr. BRN Sharma

Chanakya National Law University, Mithapur, Patna,

B. OBJECTIVE OF THE STUDY:

The aim of researcher is to:

1. To gain knowledge about the topic.

E. LIMITATION & SCOPE OF THE STUDY.

2. Transfer of Property Act- Mulla

3. Property Law- Dr. Poonam Pradhan Saxena.

1. Charles Mitchell; Stephen Watterson (2007). Subrogation (1st ed.). Oxford

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.