Mataracy
VIP Contributor
CONTROL OF CLAIMS AND SUBROGATION CONDITION
The insured has a right to claim either from the negligent third party, who was responsible for the damage/ loss insured. If he claims from the latter then the insurer shall be entitled to subrogation rights. That is , the insurer steps on to the shoes of the claimant with respect to making claims from the negligent third party or inheriting any salvage. In theory, a claim must first be settled before the insurer can exercise his right of subrogation. In practice, most policy conditions allow an immediate exercise of this right while the claim is being pricessed . This is probably because the insurers fear that the principal witness ( that is the insured) may not be eager to cooperate in bringing the negligent third party to book if he ( the insured) has earlier been indemnified. In this respect, the insured is made to cooperate with the insurer in actualizing the claim.As a further step to control the claim, insurers usually advise the insured never to accept liability under any circumstances and not to enter in to any communication with the third party in order not to jeopardize their interest and efficient handling of the claim.
The insured has a right to claim either from the negligent third party, who was responsible for the damage/ loss insured. If he claims from the latter then the insurer shall be entitled to subrogation rights. That is , the insurer steps on to the shoes of the claimant with respect to making claims from the negligent third party or inheriting any salvage. In theory, a claim must first be settled before the insurer can exercise his right of subrogation. In practice, most policy conditions allow an immediate exercise of this right while the claim is being pricessed . This is probably because the insurers fear that the principal witness ( that is the insured) may not be eager to cooperate in bringing the negligent third party to book if he ( the insured) has earlier been indemnified. In this respect, the insured is made to cooperate with the insurer in actualizing the claim.As a further step to control the claim, insurers usually advise the insured never to accept liability under any circumstances and not to enter in to any communication with the third party in order not to jeopardize their interest and efficient handling of the claim.