Subrogation Contract Template for Malaysia

A Subrogation Contract is essential in situations where legal rights need to be transferred from one party to another, particularly common in insurance and financial services contexts in Malaysia. This document type is crucial when an insurer pays a claim to their insured and needs to pursue recovery rights against a third party, or when a financial institution needs to step into the shoes of a creditor. The agreement must comply with Malaysian legal requirements, including the Contracts Act 1950 and relevant financial services regulations. It typically includes detailed provisions about the rights being transferred, recovery procedures, information sharing requirements, and dispute resolution mechanisms. The document is particularly important in protecting the interests of all parties involved while ensuring legal compliance and clear procedural guidelines for the subrogation process.

1. Parties: Identifies and defines the parties to the agreement - typically the subrogator (original rights holder), subrogor (party receiving the rights), and any other relevant parties

2. Background: Sets out the context and circumstances leading to the subrogation arrangement, including reference to any underlying claims or obligations

3. Definitions and Interpretation: Defines key terms used in the agreement and establishes rules for interpreting the document

4. Subrogation Rights: Details the specific rights being transferred, including their scope and nature

5. Consideration: Specifies the payment or other consideration for the subrogation

6. Representations and Warranties: States the parties' assertions about their capacity, authority, and other relevant matters

7. Obligations of the Subrogator: Lists the duties and commitments of the party transferring their rights

8. Rights and Powers of the Subrogor: Specifies what the receiving party can do with the subrogated rights

9. Information and Assistance: Details requirements for information sharing and cooperation between parties

10. Confidentiality: Sets out obligations regarding confidential information

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

12. General Provisions: Standard contractual provisions including notices, amendments, and severability