WHY DO INSURERS INCLUDE A SUBROGATION CLAUSE IN THE POLICY WORDING? – MENGAPA ASURANSI MENCANTUMKAN KLAUSUL SUBROGASI DALAM WORDING/SUSUNAN KATA-KATA POLIS?

0
1524

WHY DO INSURERS INCLUDE A SUBROGATION CLAUSE IN THE POLICY WORDING?

 

A: Because it allows them to commence a recovery action at an earlier stage

B: Because it allows them to peruse a recovery in their own name

C: Because it prevents the insured from recovering twice for the same loss

D: Because subrogation rights to not arise automatically

Answer

A: At common law, the insurer must wait until it has paid a claim before it can exercise subrogation rights. However, because this delay might prejudice its chances of making a recovery, the insurer includes a clause in the policy that allows it to commence a recovery action before it has settled a claim.

Facebook Comments