Under the principles of subrogation, an insurer who has indemnified the insured for loss or damage to property steps into the shoes of the insured and may enforce the insured's rights against a third party responsible for the loss, provided a valid insurance policy exists, indemnification has occurred, and the action is brought in the name of the insured. (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!)

A contract of bailment arises by express or implied agreement when goods (such as a motor vehicle) are delivered by the bailor to the bailee for a specific purpose (such as service or repair), with the obligation to return the goods in the same or improved condition upon accomplishment of the purpose, pursuant to sections 101, 102, 104 and 105 of the Contracts Act 1950. (!) (!) (!) (!)

The bailee owes a duty to exercise reasonable care over the bailed goods equivalent to the care it would take of its own property, and is liable for loss or damage resulting from failure to do so, even if caused by an accidental event such as fire, where no evidence is adduced of reasonable precautions taken to prevent or mitigate the loss. (!) (!) (!) (!)

A prior settlement between the insured (bailor) and the bailee does not extinguish the insurer's subrogation rights if subrogation vested prior to the settlement. (!) (!) (!)