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Flashcards in 8 Insurance & Liability Deck (2)
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1
Q

What is Subrogation and when may it arise?

A
  • Subrogation is the substitution of one person in the place of another in relation to a claim.
  • it commonly arises in relation to insurance policies where the insurer will often need the right to step into the shoes of the insured in order to pursue a claim against a third party with a contractual obligation to be insured
2
Q

Why is Subrogation required?

A
  • allows insurers to attempt to recover the cost of the compensation they may have paid to the insured
  • often insurance policies are requested to be changed to waive Subrogation rights ie. The insurer agrees not to pursue a claim to recover compensation they have paid out. Eg. A main contractor may demand that a subcontractor waive their Subrogation rights against them.