Superquote Terms: Subrogation

In many instances, insurers receive claims from policyholders where there is a liability incurred elsewhere.

Often the provider will pursue the third party at fault to settle the claim.  However, the insurer may also pay the claim directly to the policyholder whilst making this pursuit of liability elsewhere.

This process is called subrogation and is common place in UK claims.  As an example, if Johnparks his car next to a lamp-post and the cover of the lamp-post suddenly falls and damages his car, then the council are ultimately liable.  the principle of subrogation allows Johns insurer to pay for the damage to his car and then pursue the council for the claim costs.