What is subrogation in a personal injury claim?

Many factors go into determining what you need to seek in a claim for compensation. Complainants often think about their medical bills and lost wages. They might not think about what their insurance company paid before they saw a single statement. This thinking can harm the claim because you may not think to include this amount in your claim.

Insurance companies don't want to have to pay for medical care that they shouldn't be responsible for. When you choose to file a personal injury claim, your insurer might keep a close watch on the case. There is a chance that if you are successful, they will file a claim against your settlement or award to recover the money that they spent.

What is a subrogation claim?

A subrogation claim means that the insurance company doesn't want to hold the liability for the accident. Instead, they want to keep the party that is responsible for the accident accountable for that money. It can choose to either go after the victim's award or file a claim against the negligent party.

Some wonder why subrogation is allowed. In short, it occurs because a victim shouldn't be able to receive a double recovery. The victim of an accident must not have their medical bills paid for by the insurance company and then turn around and pocket the repayment of the bills.

What entities might file a subrogation claim?

Private insurance companies may, but the government and non-profit programs that assist might also file one. Veteran's benefits, Medicaid and workers' compensation are two entities that will usually pursue this option. Anyone who is filing a personal injury lawsuit should assume that the party paying medical bills and other expenses related to the accident will opt to pursue this type of action.

How can victims protect their interests?

Victims can protect their interests by finding out about laws that limit the rights of entities that pursue subrogation rights. There are specific requirements, so ensure you fully understand this. There is a chance that the insurance company isn't going to have to pay for more bills once you have a settlement.

You deserve compensation that adequately covers your expenses for the injury. Since subrogation can lower the amount you walk away with, factor this into your figures.

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