DR.

RAM MANOHAR LOHIYA NATIONAL LAW UNIVERSITY,

LUCKNOW
SESSION- 2018- 2019
BANKING AND INSURANCE LAW

SYNOPSIS

ON

PRINCIPLE OF INDEMNITY AND SUBROGATION IN INSURANCE LAW

UNDER THE SUPERVISION OF: SUBMITTED BY:

DR. APARNA SINGH ANAND PRAKASH YADAV

ASSISTANT PROFESSOR (BANKING AND INSURANCE) B.A. LL.B (HONS.)
DR. RMLNLU, SEMESTER- VITH
LUCKNOW ENROLMENT NO. 160101030
INTRODUCTION

Indemnity and Subrogation are very salient feature of the contract. If we confine ourselves within
the periphery of the contract and that too in facile and general term then the indemnity principle
applies where one party (indemnifier) assures another party (indemnity holder) for the loss suffered
because of the any third party (indemnitor) that he/ she will be compensated. But the incorporation
of this principle only cinch that only one party will be protected and he/ she would suffer no loss
and if we leave this principle intact from here then it will tantamount to grave injustice to the party
who indemnified. So further to protect the interest of the indemnifier, the principle of subrogation
begets. Subrogation makes it certain that the indemnifier will jump into the shoes of the indemnity
holder and from then indemnifier will took upon himself/ herself the rights and liabilities of the
indemnity holder. Insurance is a contract between insurer and insured for the protection of the
insured from any future loss. Insurance is type of indemnity in which insurer assures insured that
he will be compensated for the loss. But what if the loss has been caused because of act of any
third party? Then after compensating insured the insurer will be in the position of the insured to
sue the third party. That is hoe the indemnity and subrogation are very much pertinent for the
discussion on the insurance law.

OBJECTIVE

To study the concept and application of indemnity and subrogation in insurance.

To study what are the exceptions to this/ these principle/s.

RESEARCH METHODOLOGY

For the purpose of doing the project doctrinal research methodology has been adopted for
presenting the materials in the project. And for this this purpose various book and internet sources
have been consulted. To present the information due care has been taken to present the material in
the correct perspective.

2|Page
BIBLIOGRAPHY

 Principles of Insurance Law by Justice Ranganath Mishra

 Law of insurance by Avtar Singh

ONLINE SOURCES

 SCC Online
 Manupatra
 https://www.investopedia.com/terms/i/indemnity_insurance.asp
 https://www.investopedia.com/terms/s/subrogation.asp
 http://www.mondaq.com/india/x/392864/Insurance/Doctrine+Of+Equitable+Subrog
ation+In+Indian+Law
 https://www.insureon.com/insurance-glossary/subrogation
 https://www.sid.ir/En/Journal/ViewPaper.aspx?ID=466006
 http://www.legalservicesindia.com/article/565/Extent-of-Indemnity-in-Insurance-
Claims.html

3|Page