Subrogation Agreement Template for Pakistan

The Subrogation Agreement is a crucial document in Pakistani insurance and banking practice, used when one party (the subrogator) pays a debt or claim on behalf of another party (the subrogor) and receives the right to stand in their position for recovery purposes. This document type is essential in insurance claims handling, debt recovery, and financial transactions within Pakistan's legal framework. The agreement must comply with both the Contract Act 1872 and Insurance Act 2000, while also considering Islamic banking principles where relevant. It typically includes detailed provisions about the original claim, payment details, recovery rights, and obligations of all parties involved. The document is particularly important in contexts where insurers need to pursue recovery against third parties after settling claims with their insured.

1. Parties: Identification of the Subrogator (typically the insurer/party paying the claim) and Subrogor (typically the insured/party receiving payment)

2. Background: Context of the original claim or circumstances leading to subrogation

3. Definitions: Key terms used throughout the agreement including 'Subrogated Rights', 'Claim', 'Recovery', etc.

4. Subrogation Rights: Details of the rights being transferred, including the scope and extent of subrogation

5. Consideration: Details of the payment or consideration being provided in exchange for the subrogated rights

6. Obligations of the Subrogor: Duties of the party transferring their rights, including cooperation in future proceedings

7. Rights and Powers of the Subrogator: Authority and powers granted to pursue claims and recover losses

8. Representations and Warranties: Statements and guarantees about the validity of the claim and rights being transferred

9. Confidentiality: Provisions regarding the confidential treatment of information shared between parties

10. Governing Law and Jurisdiction: Specification of Pakistani law as governing law and jurisdiction for disputes

11. Notices: Process and requirements for formal communications between parties

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