Report No. 21
Rights of Insurer on Payment
80. Right of subrogation.-
(1) Where the insurer pays for a total loss, either of the whole, or, in the case of goods, of any apportionable part, of the subject-matter insured, he thereupon becomes entitled to take over the interest of the assured in whatever may remain of the subject-matter so paid for, and he is thereby subrogated to all the rights and remedies of the assured in and in respect of that subject-matter as from the time of the casualty causing the loss.
(2) Subject to the foregoing provisions, where the insurer pays for a partial loss, he acquires no title to the subject-matter insured, or such part of it as may remain, but he is thereupon subrogated to all rights and remedies of the assured in and in respect of the subject-matter insured as from the time of the casualty causing the loss, insofar as the assured has been indemnified, according to this Act, by such payment of the loss.
(3) Nothing in clause (e) of section 6 of the Transfer of Property Act, 1882 (4 of 1882), shall affect the provisions of this section.
[Cf. section 79, English Act, and section 135A, Transfer of Property Act]