Subrogation, in terms of third-party claims, is a crucial legal concept that can significantly impact the conduct and outcome of a claim. In essence, subrogation allows an insurance company that has an interest in a claim to “step into the shoes” of the at-fault driver and defend a claim from a third party where the insurer’s client may be responsible for the loss or damage.
This process typically occurs when the insurer’s client causes damage to someone else’s property due to negligence or wrongdoing. Once the insurance company determines responsibility for the loss (liability) they generally manage the claim against the third party (quantum). In some cases, liability may be denied by the insurer and this issue may have to be litigated.
For the not-at-fault driver, subrogation means dealing with the insurer and not their client. This can be a positive in terms of knowing that the probability of getting compensation is increased due to the financial capacity of the insurer as opposed to the unknown capacity of the tortfeasor (at-fault driver), however, insurers are professional litigants which means not-at-fault drivers are generally at a procedural disadvantage without professional representation such as a claim manager (ie Third Party Claims) or a lawyer.
Furthermore, subrogation depends on various factors, including the actual making of a claim and the paying of excess, the availability of evidence, the cooperation of all parties involved, and applicable laws and regulations. When liability is established, subrogation may result in partial or full reimbursement to the not-at-fault driver. Often, if the at-fault driver (or the owner of the vehicle) has not made a claim or not paid their excess, the insurer will not act.
In summary, understanding subrogation is crucial for not at-fault drivers in their claims against a tortfeasor who is insured.
Contact TP Claims if you having problems dealing with the insurer of an at-fault driver – online or via our 24 hr hot-line 0407 294 580. We are here to help.
Important Notice
TP Claims only deals with negligence claims for not-at-fault drivers. We do not manage claims and disputes between the insured and their insurers. Further, we do not provide advice on insurance products and policies. If you are insured and you have a dispute with your insurer, we suggest that you contact AFCA or obtain legal advice.