Subrogation is ... The concept of subrogation in insurance

One of the integral and most important elements of insurance is the so-called subrogation institution. Surprisingly, despite the fact that subrogation is not a new phenomenon known to Roman law, in modern society, however, not everyone understands and can explain its essence. For most, this remains a mystery behind the seven locks. Ignorance, and sometimes reluctance to get acquainted with the basic terminology, banal frivolity can result in the result that the insurer with whom the contract is entered into, refuses to compensate for the damage caused to the property of the insured by a third party. Moreover, cases are quite common where, due to their legal illiteracy, the beneficiary is forced to pay for the damage himself. Therefore, in order to protect yourself from such troubles, you need to know the basics of insurance and be able to protect your rights in any situation.

Institute subrogatsii: interpretation of the concept and the legal essence

The term "subrogation" first appeared in ancient Rome and comes from the Latin. Words subrogare / subrogatio, which in translation means "replace, replenish". According to ancient sources, this is a case of assignment of rights (ie, a transaction that implies that one of the parties transfers another right to require a certain third party to fulfill certain obligations). Later, the notion of subrogation was borrowed by the national systems of France, England, Germany, the United States and other countries. The father of insurance law is the Englishman Mansfield, who argues that subrogation is a means that makes it impossible to enrich the insured at the expense of double payments: for the first time at the expense of the insurer, and after - thanks to the person responsible for causing property damage.

In the United States, such a right was recognized since colonial times and implied nothing more than the replacement of the beneficiary by an insurance company in actions directed against a third party.

In the Russian Federation subrogation is regulated by Article 965 of the Civil Code, as well as Article 281 of MWC.

Subrogation is ...

Using legal terminology, the average person is difficult to understand the essence of this phenomenon. What it is is much easier to explain on specific examples.

Suppose you overslept and are late for work. Leaping off the bed, you got dressed, grabbed the car keys from the bedside table and jumped out of the house. Maneuvering on the track in the morning rush hour among hundreds of other vehicles, you were in an accident. Fortunately, you have CASCO insurance, and all the repair costs were incurred by the insurance company. However after carrying out the analysis of road accident it was established that you are not at all responsible for it, but the driver of the second car involved in the incident. In addition, the true culprit of the accident has its own insurer. In this case, your insurance company has the right to demand from the company representing the interests of the culprit to reimburse her in full all costs.

Thus, subrogation is the right under which an insurance company can demand from the person responsible for an accident the reimbursement of expenses incurred under the terms of the contract concluded with the client. The main rule is that as soon as the insurer has fulfilled its contractual obligations to you, it has a legitimate and reasonable right to demand from the insurance company the culprit of the accident or personally from him to reimburse all losses.

What if you are the culprit of the accident?

If you caused an accident, but in the damage to another person you are only partially to blame, you will have to answer only for damages received by the car through your fault. The insurer of the victim probably will not miss the opportunity to use the right of subrogation and collect from you or your insurance company all the costs incurred by him. If your car was not insured, it would be advisable to seek assistance from a lawyer.

What does subrogation entail?

Above we tried to understand what subrogation is. In insurance there is also such a thing as "the right of subrogation". What does it mean? This right (subrogation of the insurer) arises only after the company has paid the insurance compensation. Until that moment, she has no such right. In addition, it should be noted that for an amount exceeding the amount of the payment made, the insurer can not claim. Still need to remember that the insurance company passes the right to demand only what the victim had (the insured) at the time of the damage to him. In other words, depreciation of property is taken into account. For example, if the age of the car is 10 years old and during the repair old spare parts have been replaced with new ones, then from the culprit of the accident it is possible to demand compensation of costs not for the full cost of repairs, but only for the cost of spare parts that have become unusable and have to be replaced as a result of what happened Accident. Thus, the insurer, as well as the injured person, can demand compensation of expenses only taking into account the depreciation of the insured property.

Is there any difference in the right to subrogation from the right to subrogation?

Indeed, the notions of "the right to subrogation" and "the right to subrogation" are not identical. They differ from each other in the same way as different types of insurance.

The point is that the process of exercising the right to subrogation consists of two main stages. At the first stage, the insurer takes measures that will subsequently lead to the emergence of subrogation rights. For this, the insurance company only needs to provide for the relevant item in the contract.

At the second stage there is a practical realization of the right to subrogation, which arises only after the payment of compensation to the beneficiary. Until then, this right belongs to the insured. Therefore, the right to subrogation, arising from the moment of signing by the insurer and the beneficiary of the contract, from the right to subrogation, which appears only after payment of the full amount of compensation for losses, should be clearly distinguished.

Subrogation and the right of regressive action

In the Russian legislation, in addition to the concept of subrogation, there is another similar legal construction, known as the right of a regressive claim, stipulated in Article 14 of the OSAGO Law. The similarity of these two concepts is as follows:

• First, subrogation is a right that fulfills an educational function, which is the imposition of civil liability on the person who caused property damage. The same can be said about the recourse requirement of the insurer.
• Secondly, both in subrogation and in regression are involved 3 parties - the victim (the insured), the one who caused the harm, and also the party that reimbursed the damage (the insurer).

However, there is a difference between subrogation and regression, which consists in the fact that under subrogation a new obligation does not arise, and when regression - on the contrary.

Is there a limitation on subrogation?

Of course, and it is 3 years, starting immediately from the time when the damage was done. Because of ignorance of the law, many people find themselves in a rather delicate situation and pay damages twice. For example, immediately after an accident that you provoked, you agree with the injured party to compensate her for damage on the spot. At the same time, it did not occur to you to demand a receipt about the transfer of money. However, it seems to little to the useless victim of this. He turns to his insurance company, keeps silent about your arrangement, and receives an insurance payment. Naturally, after this, the insurer subrogates suing you. If in court you can not present a receipt, the court will rule in favor of the insurance company.

But the insurers themselves do not always act honestly and lawfully. Knowing about the statute of limitations, they can still try to sue you in the hope that you have no idea about the three-year action of this right. And indeed, if you do not know about this, the court is likely to lose you.

What kinds of insurance can be talked about, meaning subrogation?

Initially, it is necessary to emphasize that the right to subrogation appears only on the basis of the property insurance contract. To personal insurance (life, human health) it does not apply.

So, analyzing the subject of subrogation, it is necessary to note the following main types of insurance: OSAGO, CASCO, DSAGO.

Be carefull! Know your rights and do not hesitate to protect them!