Projects and Reports
2016 substantive report: Subrogation
This project addresses insurers’ rights of recovery (or subrogation/recourse) – an area where jurisdictional differences could catch out the unwary.
One of the key benefits of insurance for policyholders is that when they suffer insured loss or damage at the hands of a third party, they do not need to concern themselves with proving that the third party is legally liable for the loss.
Provided that the loss in question falls within the scope of cover, the insurer must indemnify the policyholder. However, where a third party is responsible for the loss, there is the potential for that party to effectively escape the legal consequences of their wrongful actions, simply because the policyholder has been prudent enough to obtain insurance.
Most jurisdictions have addressed this potentially unjust state of affairs by affording an insurer a right of recovery against culpable third parties, sometimes known as subrogation.
This report contains responses from law firms in 42 jurisdictions on key questions about the nature and scope of insurers’ rights of recovery against third parties. Read full report and country responses