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Insurance vocabulary · Claims

Subrogation

Meaning in insurance, with examples

/ˌsʌbrəˈɡeɪʃən/nounAdvanced term

In insurance, subrogation means: The insurer's right, after paying a claim, to take over the customer's legal rights and recover the money from the person who caused the loss.

In Turkish: rücu, halefiyet

How it is used

Handled by recovery or subrogation teams. After paying a kasko claim, for example, the insurer recovers the money from the at-fault driver's traffic insurer. The amount recovered reduces the net cost of the claim.

Example sentences

  1. After paying the claim, we started subrogation against the contractor who caused the flood.

  2. Subrogation recoveries brought in 40 million lira last year.

Common collocations

  • subrogation claim
  • right of subrogation
  • subrogation recovery
  • waiver of subrogation
  • indemnityPayment that puts the insured back in the same financial position as before the loss, no better and no worse; also the principle behind such payment.
  • settlementThe final agreement on a claim and the payment that closes it, made after the insurer and the claimant accept the amount.
  • third-party insuranceInsurance that pays for injury or damage you cause to other people and their property, but not for damage to your own vehicle.
  • claimA formal request to an insurance company to pay for a loss, damage or medical cost that the policy covers.

More terms: Claims

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This page explains English vocabulary for learners. It is not financial advice.