In order to explain Subrogation it is better to take a case as an example. Suppose, in case of a car crash, if the car owner owns an insurance which covers the damage to the car and his/her personal injury as well, then you can file a claim to the company. As a result the company has to pay all your expenses relating to the accident. If a third party is found to have caused the accident then your insurance carrier may claim a reimbursement from the other driver’s insurance carrier since the driver to whom they pay the insurance is in fault of the accident.
The above process is known as subrogation and it takes place almost behind the scenes with little effort from the insured. How subrogation works:
In general, subrogation allows an insurance carrier to pursue the negligent party on behalf of the insured and get the reimbursement from the party’s insurance carrier.
● Subrogation and vehicle accidents: Subrogation applies when your car has an accident due to another driver’s negligence. In that case, the insurer will obtain your signature from you for a subrogation release which gives you the right to recover to them the amount they have paid against the person responsible for your loss. Subrogation occurs after the original claim has been settled.
● Subrogation and Health Insurance: If a vehicle insurer subrogate for medical bills then it could be against the other driver’s insurance carrier. But it can also be against a health insurance policy owned by the driver in loss himself.
The insured is always sent documents describing the expenses of the insurance company for his/her accident or injury and also explain the company’s subrogation rights if you should later recover for those same injuries or damages in any lawsuit.
MedAdvo can assist in managing the subrogation process throughout the claim process. We are skilled in how to best negotiate subrogation matters. Our efforts reduce the overall liability for repayment and reduce exposure to the insured.
Let us help manage the maze in the subrogation process.
We are always ready to help you. Please contact us if you need help.
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Written by Ray Shoemaker | |