Subrogation
The insurer stepping into your shoes to recover from whoever caused the loss.
Definition
On payment of a claim, the insurer succeeds to the insured's rights against third parties in respect of that loss — the principle is stated in section 79 of the Marine Insurance Act 1906. The recovery action is still brought in the insured's name and on the insured's rights, so anything the insured did to weaken those rights weakens the insurer's position too: a signed clean receipt for damaged goods, a missed notice period, an expired time bar, or a contractual waiver of recourse given to a carrier.
Why it decides money
Subrogation is why an insurer cares what your delivery receipt said. It is also the mechanism by which claims experience, and therefore your premium, improves.
Related terms
- Sue and labour
- Your duty to minimise a loss, and the insurer's duty to pay for the effort.
- Time bar
- The deadline after which the carrier cannot be sued at all.
- Clean receipt
- Signing for goods without noting damage weakens the claim against the carrier.
More in claims and recovery
InsuranceScanner is an insurance intermediary, not an insurer — see the Terms for our role. Nothing here is a personal recommendation that a particular cover, sum insured or deductible is suitable for you. Where anything on this page conflicts with the certificate, policy schedule or wording issued by an insurer, that document governs.