Brokerfish

What is Subrogation in International Private Medical Insurance (IPMI)

Understanding Subrogation in IPMI: What it Means for Your Coverage

Subrogation is a legal term used in insurance that refers to the process by which an insurance company takes over the rights of a policyholder to recover money from a third party that is responsible for causing the loss. The insurance company acts as the representative of the policyholder and takes legal action to recover the amount paid out under the insurance policy, in the policyholder’s place.

For example, in the case of a car accident, if an insurance company pays out a claim to a policyholder who was involved in the accident, the insurance company may then seek subrogation from the third party responsible for the accident. The insurance company can sue the third party for reimbursement of the money paid out under the insurance policy, to help recover the cost of the claim and to avoid paying for losses that are the responsibility of someone else.

In the context of International Private Medical Insurance (IPMI), subrogation may come into play when an insurance company pays out a claim for medical expenses incurred by a policyholder who was treated for an injury or illness that was caused by the negligence of a third party, such as an automobile accident. In such cases, the insurance company may seek subrogation from the third party responsible for the accident to recover the cost of the medical expenses.

It’s important for policyholders to understand the subrogation process and their rights and obligations with respect to subrogation, as it can impact their ability to recover compensation for their losses. Policyholders should carefully review their policy documents and seek legal advice if necessary to understand their rights and obligations with respect to subrogation.