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Subrogation is one of the insurance principles that very co-related to the principle of indemnity which say that the insured should not benefit of the insurance any how , because the objective of the insurance is to indemnify the insured or to return the insured to his financial position where he was before the event of loss occurrence no more no less .Therefore the principle of subrogation operates to fulfill this condition as by suborgation the insurer will have all the rights of the insured to follow any financial obligation that stand against any third party (or otherwise) , after paying the claim .It is a common practice in insurance claims that the insured after receiving the amount of his claim from insurance company agree the suborgation principle and transfer all his rights against the third party ( or otherwise ) to the insurance company and confirm this by formally sign a letter or form of suborgation as an official document.
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