CMFAS BCP Claims question: insurer's right

CMFAS BCPClaims

The insurer's right to take over and dispose of salvage is an example of the operation of which principle?

A Contribution
B Utmost good faith
C Subrogation
D Insurable interest

Show the answer and explanation

Answer: C. Subrogation

Salvage rights arise under subrogation. Having indemnified the insured for a total loss, the insurer steps into the insured's shoes and takes ownership of the damaged property, preventing the insured from profiting.

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A loss of S$400 occurs. Under Policy X the S$500 provision is an excess; under Policy Y the S$500 provision is a franchise. What is paid under each?Where two policies cover the same loss on the same property, the sharing of the claim between the insurers is governed by An insured suffers a genuine fire loss of S$10,000 but deliberately inflates the claim to S$18,000. What is the likely consequence?

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