Right of Recourse and its Scope
The right of subrogation is a legal process that enables the insurance company to recover the amount of compensation paid to the insured from the at-fault party that caused the damage. This right comes into play especially in cases where the insured is grossly negligent or engages in intentional behavior. The insurance company must first pay the insured the compensation specified in the policy. Then, in accordance with the principle of subrogation, it can take the place of the insured and file a lawsuit against the at-fault party.
The principle of subrogation means that the insurance company takes over the rights of the insured in return for the compensation paid to the insured. In this way, the insurance company can take legal action against the persons or institutions that caused the damage. However, in order to exercise the right of subrogation, the insurance company must have made a payment and the at-fault party must be identified.
Types of Insurance in which the Right of Subrogation is Exercised
Although the right of recourse applies to all types of insurance, it is particularly common in motor insurance and traffic insurance. In traffic accidents, the insurance company may pay compensation to the insured or the other party. However, depending on factors such as the cause of the accident, the fault rates of the parties and the scope of the policy, the insurance company may use the right of subrogation to recover the amount it has paid from the at-fault party.
In cases such as fire and theft in housing insurances, the right of recourse may come into play if the responsible party is identified. However, in any case, in order to exercise the right of subrogation, the insurance company must have paid the damage and take legal action within the statute of limitations.
What are the Grounds for Recourse?
An insurance company is essentially a legal entity established to assume risks. The insurance company, which assumes responsibility in order to protect the interests of the policyholder, is obliged to cover the relevant loss in case the risk materializes. However, in some cases, it may claim and collect the material damage it has suffered from the damages by recourse to the damaging party. It is not always possible to use the right of subrogation, which is subject to certain conditions.
Among the reasons for the insurance company to file a subrogation case, it is possible to mention the damages caused by the intentional or gross negligence of the insured party. In addition, it is possible for the insurance company to recourse to the driver and the owner of the vehicle in the event of accidents caused by unauthorized driving, failure to comply with vehicle usage periods, and transportation of dangerous or harmful substances. In addition to these, damages incurred by vehicles participating in unauthorized races, accidents involving unlicensed drivers, accidents under the influence of drugs or alcohol-like substances, accidents caused by carrying loads or passengers over capacity are also considered among the reasons that require recourse. In cases where the operator is at fault for the theft or hijacking of the insured vehicle, the insurance company reserves the right of recourse.
Recourse Lawsuit and its Conditions
A subrogation lawsuit is a legal process brought by the insurance company to recover the compensation it has paid. In order to file this lawsuit, the insurance company must first pay compensation to the insured and fulfill the principle of subrogation. A subrogation case usually results in the identification of the at-fault party and the insurance company taking legal action against that party.
Certain conditions must be fulfilled in order to file a subrogation case. These include the insured’s gross negligence, intentional behavior or violation of the terms of the policy. In addition, the right of recourse may be exercised, provided that it does not exceed the amount of compensation paid by the insurance company.
Statute of Limitations of Recourse
The exercise of the right of recourse is subject to a certain statute of limitations. Pursuant to Article 109, paragraph 3 of the Highway Traffic Law No. 2918 (“HTRL”), claims for compensation of material damages arising from traffic accidents shall be filed within 2 years from the date on which the injured party learns of the damage and the indemnity obligor, and in any case, this period is limited to 10 years from the date of the accident. In cases involving criminal cases, the statute of limitations may be longer.
The concepts of recourse and subrogation have an important place in insurance law. Insurance companies may use the right of subrogation to withdraw from the responsibilities they have assumed under the policy. This right eases the financial burden of insurance companies and ensures a fair compensation process, especially in cases where the at-fault parties are identified. Although the exercise of the right of subrogation is subject to certain conditions and statute of limitations, it is an important legal mechanism that protects the rights of insureds and insurance companies.