ABSTRACT
The subrogation provides the insurer with a method of setting off sums recovered from third parties against sums actually paid under the insurance contract. The doctrine of subrogation has two limbs. The first is that the insurer is entitled to stand in the shoes of its insured and to enforce any claims possessed by the insured against third parties which will have the effect of diminishing the loss insured. The second is that the insurer is entitled to recover from the insured any benefits received by him from a third party in diminution of the loss. The inclusion of a rateable proportion clause in the policy limits the right of the insured to proceed against any one party for more than that party would be liable if all other insurers were contributing to the insured at that time. Reinstatement is a concept that arises in several places in insurance law, with a different meaning in each.
