Tag archives: Subrogation

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

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

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

Subrogation summarised (UK)

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

The dangers of compromising subrogation rights

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