Subrogation In The GCC

Subrogation is the insurance law term used to refer to an insurer's right, after having paid a claim and having indemnified the insured, to take the place of the insured to recover the insured's loss from the responsible third party. In the GCC subrogation is often described as being similar to an "assignment". This is a befitting description considering that in many respects subrogation in the GCC is similar to an assignment as, effectively, subrogation results in the insured's rights being passed to the insurer on payment of the indemnity.

How does subrogation work in practice?

Subrogated recoveries take the form of actions in which the insurer "stands in the shoes" of the insured with respect to the insured's rights so as to allow the insurer to recover the indemnified losses in tort or contract.