Modes of Recovery :

1. Excess/deductible – That portion of the claim which is to be borne by the insured is called an excess or deductible.

2. Subrogation – Rights and remedies preferred against the third party.

3. Contribution – This occurs when the insured property is insured by more than 1 insurer- insuch cases recovery would be made by the lead insurer from the co insurer.

4. Reinsurance – Reinsurance is the most common method of risk transfer – where the risk is re insured with reinsurers and after the claim the same is recovered from them after payment to insured.