Definition: Insurance subrogation, also known as "subrogation" or "recovery", occurs when a principal insurance policyholder acquires a secondary claim against another party by filing an action in court on behalf of the claimant's rights under that primary policy. This allows the insurer to recover its own losses from the other party's claims. The term is derived from the Latin phrase 'subrogetos,' which means to take back or return the amount paid out of a claim, and was first used during the 19th century in connection with insurance litigation involving seamen on board merchant ships. It is an important part of the legal system as it allows injured parties to recover their losses from their insurers. The primary goal of insurance subrogation is to make sure that the secondary insurer can recover all or a portion of the insured's losses, while also protecting the original claimant and the interest of creditors in the underlying policy. This often involves seeking a court order for payment of the secondary insurer's share of the loss, which can be complicated and time-consuming. The detailed definition of insurance subrogation is complex and varies depending on the country or jurisdiction, but generally it refers to the process by which an insurer pays off its own losses under another party's claims. This involves using the proceeds from a secondary claim against the primary insurer to make up for any losses suffered by the policyholder in a court action. The goal is often to ensure that the original claimant gets their fair share of the recovery, while also providing security for creditors and protecting the interests of other parties involved in the insurance dispute.

insurance subrogation