subrogaation

Subrogation is a legal principle that allows one party to step into the shoes of another to pursue a claim or right. In essence, it's a transfer of rights. This often occurs in insurance contracts. When an insurance company pays out a claim to its policyholder for damages caused by a third party, the insurance company may be subrogated to the policyholder's rights against that third party. This means the insurer can then pursue the at-fault party to recover the amount it paid out. The purpose of subrogation is to prevent the insured from receiving double recovery, once from their insurer and again from the party responsible for the loss. It also ensures that the party who caused the damage ultimately bears the financial responsibility. The process typically involves the insured assigning their rights to the insurer, either by contract or by operation of law, allowing the insurer to pursue legal action in the insured's name. Subrogation is a common feature in various types of insurance, including auto, home, and health insurance.