The interplay between indemnity and subrogation in eliminating unjust enrichment in insurance contracts: Zambia in perspective
Loading...
Date
2017-07
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University.College of Law
Abstract
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.
Description
Dissertation submitted to the School of Law in partial fulfilment for the award of the bachelors of Laws at Kampala International University
Keywords
Interplay, Indemnity, Subrogation, Eliminating, Enrichment, Insurance