When you’ve suffered injuries in an accident, you would normally get medical attention, have the doctor send your bill to your health insurance provider, and walk away feeling as though everything has been taken care of. However, your insurance company may still contact you to discuss the nature and extent of the accident and your injuries. They are merely complying with what is written in your policy in order to determine if someone other than you is completely or partially responsible for the accident and your injuries.
Furthermore, they may be attempting to determine if you’re planning on taking legal action and filing suit against the defendant (liable party). The reality is, the insurer is trying find out if a 3rd party is liable for compensating you for damages. This will help them protect the company’s bottom line and relieve some of their financial responsibility in the matter. Basically, this is the concept and reasoning that insurance “subrogation” is based on.
Your Interests and Rights in Subrogation
If your filing a personal injury claim for the injuries you suffered in an accident, you will most likely, at some point, hear the tern “subrogation.” This simply means that one individual or party stands in for another individual. Subrogation typically surfaces in a personal injury case when another person pays for all or a portion of the damages that the at-fault party (defendant) responsible for.
According to the legal definition, a subrogation claim enables the innocent party that is paying for the damages, to stand in the injury victim’s (plaintiff’s) shoes. Furthermore, the party making payment, is not entitled to the same legal rights of the plaintiff. Plus, any legal representation that could be aimed at the plaintiff and used against them could be asserted against the party making payment.
A private entity, such as a government agency or private insurance company, that pays the victim in a personal injury claim is known as a “collateral source.” The issue with this that commonly arises is the question regarding that part of the settlement or verdict that is used to reimburse the collateral source for their portion of the payment. This is based on not allowing the injured party to receive a “double recovery.” The belief is that an injury victim should only be reimbursed for the actual damages rather than profit from their loss.
If you find yourself in a similar situation, you should talk with an experienced Personal Injury Lawyer in Mississauga and have them evaluate your case. They would be able to evaluate and give you a ballpark on the estimated worth of your claim.