While removing paint from Mr. Whites office, the decorators accidentally started a fire, which caused serious damage to the extent of $3,000,000. Mr. White has a fire insurance cover with UCC Insurance Group. Suppose that the insurance cover is adequate and UCC Insurance has full responsibility to Mr. White for the amount claimed. In order to avoid any inconvenience, Mr. White has decided to claim from his insurer, UCC Insurance. UCC Insurance has subsequently made a full claim payment to the insured, Mr. White.

i. Does subrogation apply in the above case and how would subrogation rights arise?

ii. Explain how subrogation supports the principle of indemnity.