Subrogation – founded legally transfer the right to claim debt recovery from the guilty for damages from the insured to the insurer. The amount of subrogation hull may not exceed the amount paid to the insured damage.
What is Subrogation?
When an insured event occurs comprehensive insurance, subrogation becomes a kind of legal protection insurance companies against various contingencies, including the and fraud. It is often the insured (beneficiary) to get a refund, especially when the amount covers the losses incurred, loses all interest in further. Moreover, the culprit is an insured event could go unpunished. Subrogation allows the recovery of damages from the guilty, thus facilitating the burden of liability of the insurer.
Recourse to the hull – a legally enforceable right of recourse of the insurance company (insurer) to reimburse the damage to the person responsible for the damage caused. That is, although the perpetrators and to exempt victims from the obligation to reimburse their damage within the amount paid, however, they have a different duty – to pay off the expenses incurred by the insurer.
The right of recourse is established when:
- guilty was intentionally harmed the health and life of the insured, as well as property damage caused;
- perpetrator inflicted loss, driving a car in a drunken or drugged condition;
- the guilty person had no right to drive, the operation of which was caused by damage to the insured;
- guilty in the accident fled the scene of the accident;
- guilty of causing the damage was not specified in the insurance contract as a person admitted to the operation of the vehicle;
- Casco insurance case occurred while using the car in the time is not provided compulsory insurance agreement.
Differences of Subrogation And Recourse
Subrogation is often considered a form of recourse. However, it is not. The difference between the concepts of principle and the main difference is that the regression involves the presence of two obligations. The first (key), performed by a third party, and the second (subrogation), a derivative of the first. Those. Recourse obligation arises after the performance of any other obligation.
Subrogation implements one action, the essence of which the change in persons in the obligation. When there is a succession of subrogation, and for the regression of the emergence of a new law. Besides the differences observed in the different stages of the limitation period established by law for such institutions.
Watch this video to learn more about the difference between recourse and subrogation: