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Subrogation: The Insurance Involved Is Property Insurance 1

1. If a plaintiff's property is insured and they receive indemnity from their insurance company for injury or loss arising from a wrong or breach of contract, the insurance company is subrogated to the rights of the insured against the wrongdoer. 2. If the amount paid by the insurance company does not fully cover the injury or loss, the aggrieved party is entitled to recover the deficiency from the person causing the loss or injury. 3. For subrogation to apply, the insurance must be for property, there must be a loss arising from an insured risk, the insured must receive indemnity from the insurer for the loss, and the indemnity must be covered by the

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Esto, Cassandra Jill Sumalbag
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59 views

Subrogation: The Insurance Involved Is Property Insurance 1

1. If a plaintiff's property is insured and they receive indemnity from their insurance company for injury or loss arising from a wrong or breach of contract, the insurance company is subrogated to the rights of the insured against the wrongdoer. 2. If the amount paid by the insurance company does not fully cover the injury or loss, the aggrieved party is entitled to recover the deficiency from the person causing the loss or injury. 3. For subrogation to apply, the insurance must be for property, there must be a loss arising from an insured risk, the insured must receive indemnity from the insurer for the loss, and the indemnity must be covered by the

Uploaded by

Esto, Cassandra Jill Sumalbag
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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SUBROGATION

Cassandra Jill S. Esto

ART. 2207, NCC. If the plaintiff’s property has been


insured, and he has received indemnity from the
insurance company for the injury or loss arising out
of the wrong or breach of contract complained of,
the insurance company shall be subrogated to the
rights of the insured against the wrongdoer or the
person who has violated the contract. If the amount
paid by the insurance company does not fully cover
the injury or loss, the aggrieved party shall be
entitled to recover the deficiency from the person
causing the loss or injury.

requisites

1. The insurance

involved is

property

insurance ;

2. There is a loss

arising from the

risk insured

against ;

3. The insured

received

indemnity from

the insurer for

the loss ; and

4. The indemnity

is covered by

the face value

of the policy .
NO SUBROGATION

If the assured , by his

own act , releases the

wrongdoer or third

party liable for the

loss or damage , from

liability ;

Where the

insurer paid in

excess of the

amount of the

loss ;

When there

is voluntary

payment ;

When life

insurance is

involved ;

Where the insurer pays

the assured the value

of the loss goods

without notifying the

carrier who
PRESENTATION

OF THE POLICY

General Rule: Any person who relies on the


policy as basis of his cause of action must
also attach the same to the complaint as an
actionable document.
EXCEPT : Where there is no dispute regarding

the existence and validity of the policy and the

terms and conditions thereof .

LIMITATIONS

As to the amount

recoverable : only the

amount that is

recoverable by the

insured .

Insurer -
subrogee is

bound by the same

contractual

stipulation as the

insured .

EFFECT OF

PRESCRIPTION

If the claim of the insured

is subject to a prescriptive

period , the claim of the

insurer is also subject to

the same prescriptive

period .

 Based on the time

the cause of

action accrued

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