The doctrine of subrogation is considered as one of the fundamental principles of insurance that applies to both indemnity insurance: property and liability. Despite this fact, the Com. Code is silent about the applicability of the doctrine in respect of liability insurance which could possibly challenge subrogating insurers. To this end, the researcher, using qualitative methodology, argues that insurers can do away the problem by incorporating clear „subrogation clause‟ into their liability policies. Short of such clauses, however, the legal gap must be filled by interpretation. In doing so, the basic canon of interpretation, i.e. analogy from property insurance must be employed. On the top of this, the legal, social and economic benefits of subrogation in liability insurance must be weighed to fill the gap in favor of insurers. However, as such approach alone doesn‟t warrant the application of the doctrine to the gap, the researcher recommends for a legislative measure to be taken.