Assertion (A): According to principle of subrogation the insured should not be allowed to make any profit by selling damaged property or in the case of lost property being recovered.
Reason(R): Principle of subrogation is a corollary to the Principle of Indemnity and the damaged goods will belong to the insurance company, once the compensation is paid. It also states that insurance is not a contract of making profit.
On the basis of above Assertion and Reason choose the correct answer from the options given below.
(A) Both Assertion and Reason are correct and the Reason is a correct explanation of the Assertion.
(B) Both Assertion and Reason are correct but Reason is not a correct explanation of the Assertion.
(C) The Assertion is correct but Reason is incorrect.
(D) Both the Assertion and Reason are incorrect.
