Understanding Subrogation Rights in Insurance Claims

Understanding subrogation interests is challenging, especially for a layman. Failing to understand the basics of it might prove to be expensive for the injured party. Hiring a professional attorney from a NY subrogation law firm is ideal. It is vital to hire an attorney who understands the subrogation laws and interests of the state. He/she will be able to protect the client from unwanted outcomes.

Understanding subrogation interests and rights

When one is injured in an accident with substantial damage, he/she might hear the term subrogation. Subrogation refers to the concept where one party or person is entitled to make demands for the damages experienced. The issue of subrogation emerges when an individual is injured, and someone else other than the at-fault party or person pays for the damages incurred.

A subrogation claim enables the innocent paying individual or party (collateral source) to be considered the injured party. One must understand that the collateral source claiming a subrogation right can’t be assured of greater legal rights than those entitled to receive the initial benefits of the claim. The only right that can be claimed is the amount paid by the collateral source.

Subrogation law and settlement lawsuit

Cases associated with the subrogation law and interests can get complex when there is a settlement lawsuit against a third party. The injured party and the collateral source (government agency or private insurer) can settle certain claim portions with the at-fault parties. In most cases, the injured party settles with the at-fault party.

When the injured party is unaware of the subrogation rights, he/she will be shocked to learn to pay for the subrogation rather than getting compensation for the damages. In such scenarios, the settlement is not favorable as the injured party anticipated. Furthermore, a settlement can also impact the right to receive benefits for the insured or the insurer’s liability to pay. It depends mainly on the intended settlement to the party liable to subrogation. The complexity can be eased when one hires attorneys from the NY subrogation law firm.

State subrogation laws and Federal subrogation laws

Every state in the country differs concerning how and when insurers are allowed to verify their subrogation interests. Furthermore, the existence of subrogation interests also affects third-party lawsuit settlements distinctively in each state.

When an employer offers one’s health insurance as a part of the ERISA (Employee Retirement Income Security Act) scheme, it is the Federal law that controls the right to subrogation of the employer, and not by the state law. If one is a victim of an injury and is confused regarding his/her subrogation rights, consulting an experienced attorney with an understanding of subrogation law is compulsory.


The motive of subrogation law in insurance claims is to get back money for the damages resulting from the at-fault third party. The compensation of a third party must compensate for the losses, and it shouldn’t be the other way around. Laws and interests related to subrogation rights ad claims are complicated and are best managed by experienced attorneys from the NY subrogation law firm.