Subrogation in insurance matters is a legal figure contemplated in the Law on Insurance Contracts, in article 111, which allows insurance companies to replace their insured in the legal and economic consequences suffered by the latter, due to the accidents caused by a responsible third party.
In this way, subrogation occurs when insurers compensate their insured for the risks covered under the damage insurance contract.
Thus, through subrogation by insurance companies, they will have the right to claim against responsible third parties who pay the damages caused to the insured in proportion to the amount that the insurer has compensated.
With this figure established by law, insurance companies are allowed, after having fulfilled the insurance contract and having compensated their insured, to recover the compensated sums from the responsible third party, and prevent the damages caused from going unpunished.
