Document background
The Subrogation Agreement is a crucial document in Australian insurance practice, used when an insurer seeks to exercise its right to step into the shoes of the insured party to pursue recovery against a third party responsible for a loss. This document becomes necessary after the insurer has made a payment under an insurance policy and wishes to pursue its legal right of recovery. The agreement must comply with Australian insurance law, including the Insurance Contracts Act 1984 (Cth) and relevant state legislation, while clearly documenting the transfer of rights and establishing the framework for recovery actions. It typically includes details of the original claim, the payment made, the rights being transferred, and the ongoing obligations of both parties. The agreement is particularly important in complex claims where significant sums are involved or where multiple parties may have recovery rights.
