Tag archives: Subrogation

Subrogation – The circumstances and remedies for an insurer’s compromised rights

By Bongubuhle Sibanda on September 15, 2023 Posted in Insurance

An indemnity policy constitutes a contractual agreement in terms of which the insurer indemnifies the insured in the event of a loss. The policy is neither intended to unjustifiably enrich nor undercompensate the insured. Its primary purpose is to restore the insured to their prior financial position subject to indemnity limits and avoid double indemnity. … Continue reading

Subrogation, co-insurance and CAR insurance policies

By Donald Dinnie on August 2, 2022 Posted in Insurance

This United Kingdom judgment dealt with the issue of co-insurance under project construction all-risk policies, and the extent of cover when facing a subrogated claim from the project insurers. It depends on the terms of the project contract. The Rugby Football Union (RFU), as the employer insured under the CAR policy, engaged CSP to design … Continue reading

When can an insured institute action to recover its excess from a third party wrongdoer?

By NRF Digital Team on October 5, 2021 Posted in Insurance

This blog was co-authored by: Anika de Kock, associate and Zinhle Mdluli, candidate attorney The doctrine of subrogation literally means the substitution of one party for another as creditor. The doctrine is an incidence of the law of indemnity. The Court would allow the insurer to do so “in the name of the insured whether … Continue reading

Subcontractor required to provide own insurance held not entitled to project insurance (UK)

By Patrick Bracher (ZA) on April 5, 2018 Posted in Insurance

Where project-wide cover was taken out for a construction contract for extensions to a school but the roofing contractor was obliged to take out its own insurance, it was held that the roofing contractor who caused a fire and a loss of £8.75 million was not entitled to the benefit of the project-wide insurance. The facts … Continue reading

Subrogation summarised (UK)

By Patrick Bracher (ZA) on March 29, 2018 Posted in Insurance

A neat description of subrogation appears in a recent UK case: ‘The concept of subrogated rights is well known. If a party is insured against an insured risk, and that risk eventuates and causes loss, the insurer will make good to the insured party the loss suffered as a result of the occurrence of the … Continue reading

No rights of subrogation where insurance for joint benefit

By Patrick Bracher (ZA) on June 6, 2016 Posted in Insurance

In two UK cases the court confirmed that, when there is an underlying contract between parties who may become liable to each other but who take out insurance as part of their deal, the agreement is likely to be construed as being an agreement to insure for the joint benefit of both parties. It follows … Continue reading

The dangers of compromising subrogation rights

By Donald Dinnie on October 13, 2015 Posted in Insurance

The principle is trite that an insurer who pays the insured’s loss so that the insured receives a full indemnity has the right to step into the insured’s shoes and bring an action against the person responsible for the insured’s loss. Many policies also now provide for contractual subrogation even in circumstances where a complete … Continue reading