Subrogation is the theory which enables an insurance company to recoup the costs that it has paid out on a claim from a party. It allows the insurance company to pursue the right to legal remedy on their behalf and take on the legal duty of the casualty. This is frequently a normal portion of an insurance contract and requires an arrangement between the insurance company and insured party. The insurance company in this case is the insured party and the subrogee is called the subrogor.
Someone (let’s call them Party X) is driving negligently and they crash in your car, they’re responsible for the injury.
You have insurance coverage with “Insurance Company A” and that coverage comprises crash insurance, and so you claim with your insurer to ask them to repair your car.
Insurance Company A then pays the complete amount to you (less the deductible) required to fix or replace your automobile, according to the conditions of your coverage.
However neither you, nor Insurance Company An is legally responsible for the injury, that’s the duty of Party X.
This really is regarded as fair as your own car has been fixed or replaced by Insurance Company An and as the consequence of the legal action you haven’t incurred any monetary loss for their neglect but also wins an amount in excess of what had been paid to support your first claim, this excess would belong to you.
This will prevent you from regaining the same loss twice – this will be unfair to Party X, once this procedure is finished you lose the right to sue Party X personally. In the event of subrogation Insurance Company A will almost always must sue in your name, and you’ll be asked to work reasonably with the proceeding due to this.