ABSTRACT
Subrogation is an equitable doctrine adopted solely for the purpose of preventing the insured from recovering more than full indemnity. The insurer’s right of subrogation is considered as the ‘fundamental correlative of the principle of indemnity.’ The implications of the right of subrogation being regarded as an equitable proprietary claim are that the insurers’ right cannot be defeated if the insured, who is in receipt of the monies, goes bankrupt or becomes insolvent. Subrogation applies to all types of insurance that are contracts of indemnity. The policy contained a provision reserving for the insurer the option of payment, reinstatement or repair. Valued policies are commonly found in indemnity insurance where a valuation of the subject matter is undertaken, constituting conclusive evidence as to the measure of the indemnity under that insurance policy, in the absence of mistake or fraud, where that subject matter is totally destroyed by an insured peril.
