CONTRIBUTION AND SUBROGRATION

The insured can only recover the total amount of a loss sustained, regardless of the number of policies held. 

DUAL INSURANCE:

Two types of insurance provide cover in the event of loss. 

Contribution condition:

They can claim from any insurers. Up to the insurers to then recover appropriate shares from the other. 

Contributionn is the right of an insurer to recover part of a claim payment where two or more policies cover the same interest and risk.

Common insurable interest:

The insurable interest must b the same (owner, user, bailee etc). 

Common peril: i.e. both covering fire

Common subject matter: 

APPLYING THE CONTRIBUTION PRINCIPLE:

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