Subrogation

Subrogation. The doctrine in the law of insurance whereby, as between insurer and insured the insurer is entitled to the advantage of every right of the insured, connected with the insurance which was effected between them. See Assicurazioni Generali de Trieste v. Empress Assurance Corporation, (1907) 2 KB 814. The doctrine is not confined to insurance, but extends inequity to many other cases, e.g., where money has been borrowed without authority but applied in payment of existing debts; in such cases the quasi-lender is entitled to stand in the shoes of the creditors thus paid. See Re Wrexham, etc., Railway (1899) 1 Ch 440; see INDEMNITY; GUARANTY.