ABSTRACT
There is no doubt that the right of subrogation is a ‘necessary incident of a contract of indemnity’.22 In the words of Lord Justice Brett in Castellian v Preston, subrogation is ‘… a corollary of the great principle law of indemnity’, and it is from this principle that an assured is not permitted to recover more than his actual loss. In the Act, the law relating to subrogation is contained in s 79 which is divided into two subsections. Subsection 79(1) refers to subrogation in the event of a total loss and sub-s 79(2), a partial loss.
