A neat description of subrogation appears in a recent UK case:
‘The concept of subrogated rights is well known. If a party is insured against an insured risk, and that risk eventuates and causes loss, the insurer will make good to the insured party the loss suffered as a result of the occurrence of the event, the risk of which was an insured risk. However, the insurer is entitled to bring a subrogated claim, that is a claim in the name of the insured party, against any other party legally responsible for the event. The existence of the insurance does not relieve the wrongdoer (or the other party legally responsible for the event) of any liability it would otherwise have, absent the existence of the insurance policy, to make recompense for having caused that event.’
This presupposes that the third party is not entitled to the benefit of the insurance under which subrogated rights arise.