Based on the results of the accident, insurance companies pay compensation for losses under contracts with motorists. Payments can be made using different schemes. In this article, two of them will be considered: regression and subrogation in insurance.
The concepts
Imagine the essence of terms in an example. The driver insured the car for hull insurance. The policy included protection of risks from natural phenomena. The driver parked the car near the house, and when he returned, he found that an icicle fell on the car and crushed the roof. The driver received CASCO payment. But in this situation, there is a clear fault of the management company responsible for cleaning the roofs. Will she go unpunished? Not.
The company, paying compensation, acquires the rights to claims against the guilty party. This is the subrogation in insurance. At CASCO, the insurer has the right to demand the amount from the management company and file a lawsuit. Subrogation is a kind of financial protection for companies that simplifies payments to policyholders. It is used most often in CASCO in cases where:
- The driver gets into an accident and wants to receive payment on hull insurance. His company pays damages and brings to the insurance company the culprit in which the CTP was issued, a subrogation requirement.
- At the wheel of the car was a driver not specified in the policy. The insurer is obliged to indemnify the car. But at the same time, the company may put forward a claim for debt compensation to the driver.
If the driver, while intoxicated, was found guilty of an accident, but at the same time has a compulsory motor liability insurance policy, the insurance company will compensate the victims anyway. But this time, the principle of regression will be involved. The insurance will present the right of the opposite claim to its client, since it is assigned to the company by law.
Features of subrogation
If the refund partially covers the damage, the perpetrator must pay:
- the company does not exceed the amount paid to the injured party;
- the injured party the amount of damage not secured by the coverage of the policy.
Refusal from subrogation in insurance can take place, if we are talking about unintentional damage. But this should be spelled out in the contract.
If the policyholder waives the right to claim compensation or it cannot be exercised through his fault, then the company may be exempted from paying compensation for a certain share.
Subrogation in CTP insurance is limited by law. When reimbursing costs without depreciation, the company will receive a minimum amount of coverage. Actual losses that are not mentioned in the contract will also not be repaid.
Regression Features
The insurance company has the right to reverse the claim within the amount paid in such situations:
- intentional damage;
- causing harm to a driver who was in a state of any intoxication (alcoholic, narcotic, toxic);
- lack of a driver’s license to drive a vehicle involved in an accident;
- concealment of the guilty person from the scene of an accident;
- absence of a driver in the list of persons admitted to vehicle management under an insurance contract;
- the occurrence of an accident in a period not specified by agreement.
Subrogation and regression in insurance: the difference
These two concepts are independent and independent of each other.
- In subrogation, there is only a succession right to claim a debt. There are two circumstances in the regression.The first is the repayment of the debt, and in the presence of certain circumstances there is a demand to offset the costs of the culprit.
- Subrogation in insurance is a transfer of obligations, and regression is the payment of damage by one joint entity.
- There are also differences in the statute of limitations. In a recourse, the time report starts from the moment the compensation is paid, and in subrogation, from the occurrence of the insured event.
This is the difference between regression and subrogation in insurance.
Common features
Subrogation and regression in transport insurance carry educational value. This is the embodiment of the idea of responsibility of those responsible for causing intentional damage. Subrogation in insurance acts as a deterrent, suppressing enrichment attempts at the expense of insurance. Its essence lies in the prosecution of those responsible for losses. Evading responsibility is pointless, but you need to control the insurer's calculations. Such an approach in insurance meets the interests of all entities:
- the subrogation policyholder receives compensation for damage;
- the maximum amount that the guilty will have to pay does not exceed the amount of insurance;
- companies withdraw from the debtor amounts in excess of the deposit that are not taxed.
Example
In an accident two cars collided. The guilty driver has only an insurance policy. The maximum payout that he can count on is 120 thousand rubles. (provided that extended insurance has been issued). The injured driver has a CASCO policy. The company will pay him the full amount of compensation, for example, 150 thousand rubles, and submit a regression request to the injured party. The insurance company will repay only 120 thousand rubles, the remaining 30 thousand rubles, the perpetrator will have to repay on his own. This is how subrogation is manifested in insurance.
How to be guilty?
The right to subrogation in insurance is possible only if there is a person responsible for causing harm. At the same time, the fact of guilt must be recorded in an appropriate way. For example, in a road accident only the court, and not the police, can establish the fault of the traffic violation. Therefore, to put forward a regression, having only certificates, is unlawful. However, insurance companies issue this item and are trying to implement a regression, since the compensation has already been paid. Especially if the victim had a CASCO policy. It even happens that the insurer begins a dialogue with the second participant in the accident before payment, trying to at least partially pay off the client directly.
In the event of an accident, the policyholder must:
- find out the reasons that led to the insured event, and find illegal components in them;
- collect documents proving damage;
- get an expert opinion on the causes of the accident;
- call the culprit for the examination and inspection of the accident scene.
The main advice that can be given to car owners who have received subrogation - do not shy away from responsibility. After receiving the notice, you need to respond to the claim. It is worth visiting the office of the insurer and carefully familiarizing yourself with the documents. The assessed damage must comply with what is indicated in the accident certificate and inspection certificate. If the requirements are fair, then it is better to resolve the issue peacefully. Insurers often make concessions to customers who are willing to meet their obligations by providing installment payments. If you think that the requirements are too high, then you should ask for copies of documents, photos from the scene of an accident, an inspection report and contact an independent appraiser. If, according to the results of the examination, it turns out that the calculations are often very overpriced, then it is worth hiring a competent lawyer and challenging the amount of the claim in court.
The most common errors that are indicated in insurance contracts:
- Payment for work or services that have nothing to do with an accident.
- Insurance subrogation is often calculated on the condition that repairs are carried out by an authorized dealer.Although according to the Federal Law “On OSAGO” it is said that only the market value of repair services, spare parts and materials should be taken into account.
- With subrogation often require damages excluding depreciation of spare parts and materials.
The limitation period for subrogation is 3 years. If after this period the insurer has filed a lawsuit, it is pointless to hope that they will refuse to consider the case. The defendant will have to come to the meeting on his own and declare that the statute of limitations has passed.
Useless disputes
Many responsible persons try to deviate from recourse claims, citing the fact that they disagree with the fact of guilty plea. This argument is untenable. In the event of a retrial, the court will not once again establish the fact of guilt. Often, those responsible do not even appear at the court session and recall this, having received a decision on holding them accountable.
What if there is nothing to pay?
Some insurance companies have departments that collect insurance debt. But most organizations have to turn to collection companies or law firms. But insurers always go towards a person who wants to fulfill obligations, because the process of collecting debt costs money. Those who wish to pay off obligations by virtue of their capabilities are provided with installments, which are drawn up by the contract. The insurance company may also provide a discount subject to the full repayment of the outstanding amount. In this case, the company will issue a letter of guarantee regarding the waiver of part of the requirements. Be that as it may, it is better to negotiate with the insurer than to provoke a conflict and evade liability.
This is important to know!
If you conclude an agreement on voluntary insurance of the TS (DAGO) with a payment of 1 million rubles or more, then in the absence of compensation for OSAGO this insurance will take effect.
If there is at least one chance to challenge the fact of guilt in an accident, it must be used and try to defend your rights in court.
It is advisable for the guilty person to be present during the inspection of the victim’s car. Otherwise, the act may include damage that is not related to an accident.
From all of the above, one conclusion can be drawn. All opportunities must be used to minimize the chance of making a claim. If this is not possible, then it is worth contesting the amount of compensation through the court.
