The right of subrogation arises in insurance relations about real estates, such as subrogation rights in the event of a motor vehicle accident. Applying to the relevant authorities for the payment of subrogation payments and taking the necessary measures shall be carried out in the manner prescribed by law.
The right of subrogation is the transfer of a kind of claim. Thus, the victim has the right to claim the amount of damage caused to him/her by the insured. After the insurer reimburses the damage caused to the injured, the claim against the insured is automatically transferred to the insurer. Subrogation rights are regulated by the Civil Code and the Compulsory Insurance Act.
According to Article 25 of the Compulsory Insurance Act, the right of subrogation against the insured arises in the following cases:
- The insured event is the result of intentional acts of the insured, aimed at the occurrence of this event, except actions that exclude administrative liability or eliminate the criminality of the act;
- Use of alcohol, drugs, psychotropic substances or other substances when handling or using the property (premises, buildings, vehicles, equipment, etc.) by the insured, as well as evasion from the competent authority to test for the use of the said substances;
- Use of property specified in the compulsory insurance certificate by a person who has no right to use, manage, operate and otherwise operate it;
- An insurance event occurs when the property specified in the compulsory insurance certificate is used for purposes other than its technical purpose;
- Failure by the insured or his representative to take measures to prevent and reduce the damage to the property during the insured event, as well as to save the lives of the injured; In this case, the right of subrogation arises to the extent that if these measures had been taken and whether the amount of the damage could have been reduced.
- The insured event is connected with the act of the insured or non-victim insurer engaged in this or that type of activity, with an intentional violation of the law regulating it;
In case of payment of compensation by the legislation, the beneficiary under the relevant compulsory insurance agreement is transferred to the Compulsory Insurance Bureau in the amount of compensation payable to the insurer or, if applicable, the liquidation commission of the insurer.
Subrogation Rights in Real Estate
Article 49 of the Law on Compulsory Insurance for Real Estate states that subrogation is granted when the insured or their representative use, repair, construction, etc their property (premises, buildings, vehicles, equipment, equipment, etc.) while under the influence of alcohol, drugs or other toxic substances which contributes to the occurrence of the relevant event.
Subrogation rights in the event of a motor vehicle accident
Subject to Article 63 "On Compulsory Insurance", a subrogation right arises in the amount paid to the person who committed the accident, even if the driver evaded the accident scene, in the event of the compulsory insurance. In the event of the payment of damages, the right of the victim to the person responsible for the damage is transferred to the Bureau in the same amount.
Subrogation-regression rights are similar to civil law regression rights. According to Article 1114 of the Civil Code, the person responsible for another person (the person authorized to act on behalf of the person, etc.) undertakes to compensate for the damage caused by the person who was responsible for the regression.
The right to regression arises by such relations between the employer and the employee, between the Republic of Azerbaijan and its law enforcement agencies or persons entitled to act on its behalf.
However, unlike regression rights, in the case of subrogation, one party undertakes to compensate the other party for damages caused by the third party and to recover from the harm to the other. At the time of the recession, one party undertook to pay the damage to its employee, and then to recover from the loss.
Legal services related to subrogation rights
Legal Store law firm is committed to the full and fair application of all provisions of the law in the field of subrogation law. Thus, the necessary measures will be taken to ensure your rights related to subrogation rights and the other party to fulfill their obligations.
Regular negotiations and appeals with the executive branch of courts on subrogation proceedings, including resolution of controversial issues, court hearings, appeals, applications, etc. The preparation of documents is among the legal services we can offer to you.