Subrogation Rights

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Subrogation Rights The Right of an insurer to recover from a negligent party for causing injuries/damages to the insured. A successful subrogation means a refund for you and your insurer. One example of subrogation is when an insured driver's car is totaled through the fault of another driver. The insurance carrier reimburses the covered driver under the terms of the policy and then pursues legal action against the driver at fault. The doctrine of subrogation allows an insurer to: -Bring a claim in the insured’s name against a third party responsible for a loss suffered by the insured; and -Claim from the insured any double recovery that has been made. The right of an insurer to be subrogated to the rights of its insured is typically based upon: -The terms of the policy of insurance; or, -The right of equitable subrogation, i.e., by operation of law. Subrogation rights are usually not at issue when an insurer is faced with a claim caused by the intentional act of its insured. Thus, in such instances the insurer will generally have a right to properly deny coverage because the loss, as required by most policies, was not accidental, and because of the typical exclusion, under most policies, for intentional acts committed by an insured. There are certain situations where it makes sense to waive the right of subrogation. Leases, for example, frequently contain a provision stating that the landlord and tenant waive rights of recovery against one another. The right of subrogation is not available when a person pays a debt that s/he is already obligated to pay based on an obligation already owed. The right of subrogation is not available to a person who is simply paying his/her own debt. Also right of subrogation is not applicable to “volunteers” who, without any moral or legal duty, pay the debt of another. When a person pays the debt of another without any assignment or agreement of subrogation, s/he can be considered such a “volunteer”. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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