Subrogation Flashcards
Subrogation
Entitles the insurer after payment of a loss to take over any rights and benefits the insured may have such as sueing the guilty party.
How does subrogation support indemnity
It ensures that the insured cant get money from the insurer and through the courts/scrap value.
What is the common law basis of subrogation?
Castellain v Preston
What is the insurer entitled to in subrogation
Any “profits the insured makes”
How can insurers recoup the claim? (4)
Tort
Contract law
Statuite - riot = council claim
Salvage/scrap value
Can an insurer take over subrogation right before indemnification?
Yes but this is very rare
What happens to your premiums if you are in an accident that wasn’t your fault
They go up until it is proved that it wasn’t your fault.
Can insurers make a profit from subrogation?
No, they can only recoup the amount they indemnified for
What is the average formula
(Sum insured x actual loss) / value of property
What happens if you under-insure and claim, then sue the negligent party?
You need to give back what the insurance company paid out but you can keep the rest so you haven’t profited
What case set presednt for the average in subrogation?
Driscoll v Driscoll
MIBI
A fund insurers pay into that they sure if you are hit by an uninsured driver, the fund can then take action against the driver
What are the limits to subrogation?
- Doctrine of the unnamed co-insured
- Waived the right of subrogation
Doctrine of the unnamed co-insured
An insurer cant subrogate against somebody who is covered by the policy (named or unnamed)
What case do we get the doctrine of the unnamed co-insured?
Rowlands v Berni Inns
