Browsing by Author "Chitoshi, Kaoma"

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    The interplay between indemnity and subrogation in eliminating unjust enrichment in insurance contracts: Zambia in perspective
    (Kampala International University.College of Law, 2017-07) Chitoshi, Kaoma
    In a society characterized by high and unavoidable accidents and losses, insurance remains an important tool for management of risks and remedying losses. However, attaining a successful insurance industly requires a balance in the application and operationalisation of the key principles of insurance which include indemnity and subrogation principles. Research on the relationship of these two principles has become an important subject because the two principles are not mutually enforcing in certain aspects in flying to eradicate unjust enrichment in the transactions and this stands as a ch"llenge in the industry. This study was thus C(lrried out to explore appropri"te legal mech"nisms for ensuring " bal"nce in the operation"lisation of the two principles in the Zambian insurance industry. Using a doctrinal type of research, reliance was placed on statutes, case law, adopted systems as well as books that are relevant to the matter. The .findings reve"led that there is no b(ll(l11ce between the principles in certain conditions. A situation where both subrogation and salvage rights are exercised is one of them as it enriches the insurers. Coupled with this is the concept of abandonment which either affects the insurer's subrogation rights where the insured abandons his rights to an "ction against a tortfesor but cfaims indemnity, or enriches the insurers where they indemnify for a lost chattel which (f recovered appreciates in value. The findings further revealed that the principles do not meet where the loss is caused by an "ct of God and that the insurers tend to claim fi>r subrogation when they h"ve not provided indemnity. Based on the .findings, the study has recommended application of the principle of constructive trust (lnd test mechanisms to estopp any of the parties from obtaining more than they deserve. In addition, the lawyers, insurers and loss adjusters should be educated continuously to avoid.frivolous claims.