Rights of the Insurer


 The insurer under a fire policy has the following rights

Right of avoiding the contract for non-disclosure of material fact:- If the assured mis-states any fact or conceals any material fact, the insurer can avoid the contract. The assured is bound to disclose not only the facts which he really knows but also those which he is deemed to know.

Right of control over the property:- When the property or goods are damaged or destroyed, the insurer has an implied right to assume control over the damaged property. In order to safeguard his interests he can adopt any means he likes to mitigate further loss.

Right of entering the property:- The insurer, on a notice of fire by the assured, has the right to enter the premises insured or the premises where the things insured are lying.

Right of subrogation: When the insurer pays the amount of loss to the assured, he steps into the shoes of the assured. He gets all the rights which the assured has against the third persons. If the assured receives any benefit from a third person by way of compensation, he shall have to pay this amount to the insurer. He cannot get more than the actual amount of loss.

Right of salvage:- When the subject-matter is destroyed or damaged by fire, the insured has a right to take possession of the salvage. ie. the property or things saved after fire.

Right of reinstatement:- The insurer has a right that instead of paying the loss to the assured in money, he carn replace the property. This is known as the insurer's right of reinstatement.

 Right of contributions:- If the same subject-matter is insured with two or more insurers and if in case of loss one of the insurers has paid the full amount of loss-to the assured the insurer has a right to claim contribution from the other co-insurers. The loss in such a case is to be borne by all the insurers in rateable proportion.

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