Regress Concept Of Insurance

Regress is a right of insurance company to demand from responsible for the road accident of indemnification of damages to insurance company due to its reimbursement to aggrieved party.

After a road accident the guilty party has the right to use the CMTPL insurance policy. And everything occurs rather clearly. The insurance company of aggrieved party pays at once insurance disbursement to the client. The insurance company of a guilty party pays the sum of damage of insurance company of the victim. And, if everything occurs smoothly the matter is settled. However, what should do the insurance company of aggrieved party if the driver has no right to use the insurance?

It can occur, if:

- Harm to health and property was caused by guilty person deliberately.

- Responsible for road accident was driving drunk.

- The driver had no right to steer the car on which the damage was caused.

- The driver disappeared from site of occurrence.

- Responsible wasn’t specified in the insurance contract as a person having right for driving.

- Road accident happened in time which isn’t specified in the insurance contract.

In this case, the insurance company of the victim demands payment from the driver responsible of road accident.

Concepts of regress and subrogation often confused. However they significantly differ from each other. At the subrogation there is a transfer of rights to the third party or it is possible to tell replacement of the demanding party. But at regress own new right for indemnification at the third party is possible.

Also, there is a difference in terms. At regress claim term is counted from the beginning of road accident, but at subrogation the term of transfer of rights has no time limitation.

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