NCERT · Class 11 · Business Studies · Business ServicesWhich insurance principle states that after the insured is paid the compensation, the insurer steps into the shoes of the insured?
Step-by-Step Solution
Principle of subrogation allows the insurer to claim rights against third parties after compensating the insured for the loss.
Detailed Options Breakdown
Option : Contribution
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Business Services.
Option 1: Subrogation (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Mitigation
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Business Services.
Option 3: Causa Proxima
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Business Services.
💡 Study Guide: This question tests core syllabus concepts from Business Services. For formulas, key summaries, and mock exam reference guides, read the full Business Services Revision Notes.