Consequences of subrogation

Subrogation does not affect the proportion of the parties to the dispute, but the insurer has the right to recover from the responsible person within its own claim scope, and the responsible person will repay the loan in time without other adverse consequences. If it refuses to pay compensation, it may be sued by the insurer, and if it refuses to perform the judgment after losing the case, it will be enforced.

What is subrogation?

Refers to the loss of the insured goods caused by the liability of a third party within the scope of insurance liability. After the insurer (insurance company) performs the liability for compensation to the insured (owner), the insurer (insurance company) has the right to claim compensation from the third responsible party within the limit of the amount paid by the insurance company. After the insurer (insurance company) obtains this right, it can replace the position of the insured (owner) and claim compensation from the third responsible party. Simply put, "subrogation compensation" means that your insurance company advances the maintenance fee to you first, and then claims from the responsible party.

The content of subrogation

Power subrogation: If the insured accident is caused by the fault or illegal behavior of a third party, the third party must be liable for the losses of the insured. The insurer may pay the insured in advance according to the stipulations of the insurance contract or the provisions of the law. Then, the applicant transfers the right of recourse to the insurer and assists the insurer to recover from the third party.

Substantive right of subrogation: In property insurance, when an insured accident causes a presumed total loss, the insurer shall obtain the ownership of the subject matter insured according to law after performing the liability for compensation in accordance with the contract.

Legal basis: Article 60 of People's Republic of China (PRC) Insurance Law * * * If an insured accident is caused by damage to the subject matter insured by a third party, the insurer shall subrogate the insured's right to claim compensation from the third party within the compensation amount from the date of compensation to the insured.