Subrogation Agreement Template for Hong Kong

The Subrogation Agreement is a crucial legal instrument in Hong Kong's common law system, primarily used when one party (usually an insurer or financial institution) compensates another party for a loss and subsequently acquires the right to pursue recovery from responsible third parties. This document is essential in situations where an insurance company has paid out a claim to its insured and wishes to recover the amount from the party responsible for the loss. The agreement must comply with Hong Kong's Insurance Ordinance and related regulations, while also adhering to common law principles of subrogation. It typically includes detailed provisions about the rights being transferred, the obligations of both parties, and the mechanisms for pursuing recovery. The document is particularly relevant in complex commercial claims, property damage cases, and professional liability situations.

1. Parties: Identifies and defines the parties to the agreement - typically the Subrogator (original rights holder) and the Subrogee (party receiving the rights)

2. Background: Sets out the context of the agreement, including details of the original claim or right that is being subrogated

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules of interpretation

4. Subrogation Rights: Details the specific rights, claims, and causes of action being transferred through subrogation

5. Consideration: Specifies the payment or other consideration being provided in exchange for the subrogation rights

6. Representations and Warranties: Contains statements of fact and assurances from both parties regarding their capacity and authority to enter into the agreement

7. Obligations of the Subrogator: Sets out the duties of the original rights holder, including cooperation in enforcement

8. Obligations of the Subrogee: Defines the responsibilities of the party receiving the subrogation rights

9. Duration and Termination: Specifies when the agreement becomes effective and circumstances for termination

10. Confidentiality: Establishes obligations regarding confidential information shared during the subrogation process

11. Governing Law and Jurisdiction: Specifies Hong Kong law as governing law and establishes jurisdiction for disputes

12. General Provisions: Standard boilerplate clauses including notices, amendments, and severability