Does the culprit of the accident face subrogation under compulsory motor liability insurance? In what case should you be afraid and how to act?

What is subrogation in compulsory motor liability insurance?

The Latin word "subrogation" literally means "substitution." In the legislation of the Russian Federation, the concept is introduced by the Civil Code in Article 965. In accordance with it, subrogation is understood as the right to recover losses from the causer, which the insurer has already covered for the insured person.

In practice, subrogation under compulsory motor liability insurance from the culprit of an accident looks like this. After an insured event occurs, the insurance company compensates for the damage caused to the property of the insured person. The organization can send a demand for compensation to the at-fault driver, who is obliged to compensate for the payments made, compensating for the damage caused to others.

When the insurer fulfills its obligations to the insured, subrogation occurs. This means that the culprit of the accident no longer owes the victim anything, but his debt has been transferred to the insurance company.

Subrogation is allowed only for property insurance. It cannot be used for health or life insurance coverage.

What it is

This term has a longer history than you might think. The concept began to be used back in Ancient Rome, and meant the verbs “replace” and “replenish”.

Today, subrogation refers to a means that helps eliminate double compensation payments to the injured party. And this is done at the expense of the insurer and the culprit of the incident.

In our country, this concept is regulated by the Civil Code (namely Article 965), as well as the Merchant Shipping Code (Article 281).

Based on this legislative framework, the term is defined: the insurer’s right to demand from its client (the culprit of the road accident) compensation for the provided amount of money.

For example, there are two vehicles – A and B, which were involved in an accident. Both cars have an insurance policy.

The investigation of the accident showed that the driver of vehicle A was the culprit of the accident, and the owner of vehicle B can demand compensation for the damage caused to him and his vehicle.

This is performed by the insurer in cases where the client’s policy is current and the accident is an insured event. The insurance company can then recoup its waste using the client motorist's money.

But the owner of vehicle B, after receiving compensation from the insurance company, cannot receive payment of funds from the culprit.

Thus, it is clear that subrogation under compulsory motor liability insurance from the culprit of an accident for damages involves payments by the insurer under the current policy, after which the insurance company allegedly receives financial damage, and the victim is replaced.

But the insured motorist does not do this from his own funds, because he has a registered motor vehicle license. The costs of an insured event are borne by the insurance company that issued the policy.

The maximum payment can be 400,000 rubles , according to Russian insurance legislation. But if there is a difference between the amount required and the amount provided by the insurer, then it is assigned to the guilty party of the incident.

Let's say the restoration of a vehicle requires 480,000 rubles , then the difference is reimbursed by the insurer, who then, to eliminate its damage, uses the right of subrogation - receiving the spent 80,000 rubles , because the main 400,000 rubles are provided for by the terms of the insurance contract.

Subrogation is used by the insurer not only for CASCO or OSAGO policies, but also for any other real estate insurance.

How is subrogation different from recourse?

The at-fault driver may not know the difference between subrogation and subrogation. In each case, the victim receives compensation. However, after a certain time, the insurer sends a notice demanding payment of a certain amount.

The difference between the concepts lies in the source of the requirements. Subrogation can be claimed by the victim's insurance organization, since it was the one who received such a right from the victim. The limitation period for a claim does not depend on the transfer of rights. This means that by subrogation it starts from the same date as in the usual manner - from the date of the traffic accident.

Recourse claims can be made by the insurance organization of the at-fault driver, since he has received the opportunity to make a claim against the insured (the Law “On Compulsory Motor Liability Insurance” in Article 12 regulates cases when regressive claims arise). At the same time, the Civil Code in Article 200, paragraph 3, determines that for regressive claims, the limitation period begins to count from the date of compensation for damage to the victim.

Differences from regression

For the at-fault party, recourse and subrogation will be quite similar. The victim was paid compensation, everything seems to be fine, but after some time the insurance company comes with a demand to pay a certain amount.

The difference is this. Subrogation is required by the victim's insurer because the right to claim compensation for damages has been transferred from the victim to him. The insurer will have the right to claim from the moment the insurance is paid out.

Recourse claims are made by the insurer of the culprit because he has the right to demand payment from the policyholder (cases in which this arises are listed in Article 12 of the Law on Compulsory Insurance). The right to claim arises from the time of the accident.

In what cases is subrogation under compulsory motor liability insurance not possible?

Under a compulsory motor third party liability insurance contract, subrogation is not possible, since this claim of the victim’s insurance is covered by the insurer of the at-fault driver under the MTPL policy.

The legislation of the Russian Federation establishes that only the victim has the right to demand from the at-fault driver the amount that is insufficient to completely restore the vehicle. The transfer of rights in this case is not provided, therefore the term “subrogation” is not applicable. However, the at-fault driver will have to pay for damages caused that are not covered by the motor vehicle insurance company if such a demand is received from the victim.

Subrogation also cannot be used in the absence of proof of the guilt of a certain person.

When can there be no subrogation?

Under compulsory motor liability insurance there can be no subrogation, first of all, because this is liability insurance, not property insurance.

Under today's legislation, the victim himself must demand from the culprit the amount that is not enough for him to fully recover after payments under compulsory motor liability insurance. There is no transfer of rights here, therefore the concept of subrogation is not used. But the culprit in court will have to pay for damages not covered by compulsory motor liability insurance if the victim demands from him.

Subrogation cannot be applied if the insurance company has refused to pay under compulsory motor liability insurance or the payments do not exceed its limit

When does subrogation appear under compulsory motor liability insurance?

One of the situations in which subrogation appears is when the insurer paid the victim more than the compulsory motor liability insurance covers. In what situation is this possible? Under what policy? Under a comprehensive automobile insurance agreement, except for motor vehicle insurance.

When paying under CASCO, a situation arises in which the insurance organization requires the culprit to compensate for the costs that were covered for repair work to restore the client’s car. In such a situation, the presence or absence of a compulsory motor liability insurance policy does not play a role.

Let's look at an example. The driver injured in the accident has a valid CASCO policy for the car. Therefore, he does not ask for compensation under the auto insurance policy. The repair work is being arranged by his insurance company. After this, the car owner is happy that the money for CASCO was not wasted.

In this situation, subrogation occurs. The insurance company may require the at-fault driver to reimburse the costs spent on restoring the client’s car.

What not to pay

The maximum insurance payment under compulsory motor liability insurance is 400 thousand rubles (according to the European protocol - 100 thousand rubles). The costs of restoration are compensated by the insurance organization of the at-fault driver, since it was with them that he entered into an agreement and made payments. The insurance company of the at-fault driver has the right to demand an amount that exceeds the maximum payment through subrogation from the initiator of the accident.

The insurer is not authorized to demand that the perpetrator pay more than he compensated the victim. Additional costs cannot be charged. For example, if the insurer is late in payment and pays a penalty for this. The at-fault driver is not obliged to compensate for its amount. He must pay only the damage that was caused to the victim.

When can subrogation be filed against the culprit of an accident under compulsory motor liability insurance?

Subrogation occurs if the amount of payments to the victim is greater than the maximum limit under compulsory motor liability insurance. The situation is possible if you have a CASCO policy. The fact that the culprit of the incident had compulsory motor liability insurance is not taken into account. In the absence of a policy, the entire amount paid will be claimed from the citizen. An examination is carried out to determine the amount of damage. After its implementation, a written conclusion is provided. It serves as the basis for further claim of the due amount.

Subrogation does not always occur. Thus, the culprit can challenge the claim if it is proven that the accident occurred as a result of factors beyond the control of the driver. The insurer does not have the right to file a claim against the culprit of the accident if the victim does not have any claims. However, you need to understand that this factor will not allow the organization not to provide payment under compulsory motor liability insurance.

Subrogation under compulsory motor liability insurance from the culprit of an accident is carried out subject to a number of conditions.

How is the wear of parts of a damaged car determined?

Wear and tear of parts is one of the most controversial issues when determining the amount of compensation. A CASCO policy usually allows for complete repairs, but when calculating damage under MTPL, wear and tear of components and parts is used. Some insurers, after restoring the insured’s car, demanded that the culprit of the accident reimburse the entire amount without taking into account wear and tear.

In the past, many courts have found such actions to be unlawful. The at-fault driver does not have to compensate for the cost of repairing the vehicle from new condition. It is logical that he should compensate only for the harm caused. Therefore, the car must be restored to the condition it was in before the accident. Judicial practice of subrogation in insurance under compulsory motor liability insurance has shown that court decisions were very different.

The perpetrator is obliged to make full compensation

In the spring of 2021, the Constitutional Court of the Russian Federation issued Resolution No. 6-P. It recognized all the provisions of the Civil Code, which provide the victim with the opportunity to receive payment of all the money that was spent on repair work, and not just the amount that is calculated according to the rules of the motor vehicle. The judge, when considering a certain case, is authorized to reduce the amount of compensation if he considers it correct.

Under subrogation, the insurance company receives the right from the injured driver to demand compensation for damage, therefore it is authorized to recover from the culprit the amount that was spent on restoring the damaged car (within the amount insufficient under the compulsory motor liability insurance policy, determined according to the Unified Methodology).

Calculation of the amount of subrogation

Under CASCO subrogation (it is important to remember that it is impossible to carry out the process under compulsory motor liability insurance), the insurance company receives the right to claim from the guilty party compensation for the entire amount spent on restoring the damaged property, or rather, the amount that remained uncovered after receiving payments under compulsory motor liability insurance, for which the calculation was carried out according to a unified methodology. If a citizen was found guilty of committing a traffic accident only partially, then the amount of subrogation is established in accordance with the degree of his guilt.

Example

Both participants in the traffic accident have an auto liability policy from different insurance companies that was valid on the date of the accident. The victim submitted a request to receive compensation from the insurance company in connection with the occurrence of an insured event provided for in the contract. In such a situation, compensation for damage comes from the company of the guilty party - drivers are practically not involved in this process.

In essence, the following scheme is being implemented: one insurance company compensates for the losses of another insurance company according to the provisions of the relevant agreement with clients. If the actual amount of damage exceeds the payments received under compulsory motor liability insurance, then the difference is recovered from the culprit of the accident through subrogation.

Additionally, it is worth noting the most common cases of using subrogation - this is relevant if the participants in the emergency situation have drawn up a European protocol for compulsory motor liability insurance, and the cost of repair work amounted to more than 100 thousand rubles.

In such a situation, the person responsible for the accident compensates the company for costs exceeding the established amount of compulsory motor liability insurance. In other words, if 110 thousand rubles were spent on restoring the vehicle, then 10 thousand rubles are sought from the initiator of the incident.

If the accident is registered according to the European Protocol

If a traffic incident is registered under the European Protocol and the car is restored under CASCO, then the difference between the cost of restoration work and 100 thousand rubles is demanded from the guilty driver, since this is the maximum payment in such conditions.

To avoid this, it is better to take a receipt from the victim that if the costs exceed the maximum amount under the European Protocol, he will not demand reimbursement of costs from the at-fault driver.

Attention! It is better to ask to write a receipt even if an agreement is reached not to register a traffic incident at all. Sometimes it happened that the dishonest car owner took the agreed amount from the culprit, and then submitted documents to his insurer. The latter later sent a demand to the culprit to compensate for the damage.

Cases and procedure for applying subrogation

Subrogation under CASCO may relate exclusively to property insurance. If there is insurance of a person’s health or life in general, then this right cannot be applied under any circumstances. It is important that the victim also takes part in this, and must provide the insurer with all information regarding violations by the other party. This can be documents, photos and videos.

When we have a person at fault in a traffic accident, the victim must contact their insurance company and demand compensation for the damage caused. There cannot be any restrictions on his rights. This is all provided for by legislative acts. So far there are no claims against the culprit. According to the concluded agreement, the amount of payments is made in the interests of the victim, and after that the insurer turns to the guilty party and subrogation is collected.

But we should also consider an example that does not concern a vehicle. Property can also be insured in case of damage. Initially, you can make demands on the neighbors who, for example, flooded you. If they refuse to make payments, then the insurance company takes over. She makes compensation for the damage caused in the established amount, and after that she exercises the right of subrogation against the perpetrators, that is, neighbors. In this case, the assets will be preserved due to the return of funds from the culprit.

Under what conditions does subrogation appear?

To make subrogation possible under compulsory motor liability insurance, the following conditions must be met:

• the insurance organization fully compensated the damage to the victim;
• the victim has CASCO insurance;
• the cost of restoring the victim’s car exceeds the maximum amount for the car insurance policy.

From each person at fault in the accident (pedestrian, driver without compulsory motor insurance or cyclist), the insurer can recover damages through subrogation.

Attention! The victim is not subject to subrogation requirements, even if he is at fault. For example, he lost control and drove into a pole. If the car is registered to a legal entity, then it is the organization that is obliged to make the subrogation payment, and not the driver who was driving the car.

Contesting guilt

If subrogation claims have already been received, you can avoid the need to reimburse the insurance company in the following situations:

• if the defendant can prove the existence of an auto liability policy and requires his insurer to cover the damages sought;
• if the guilty person proves his own innocence;
• if the initiator of the traffic accident confirms that the damage caused to the injured party is less than reflected in the requirements of the insurance company;
• if the statutory limitation period has expired;
• if violations of the rules of procedure were detected on the part of the insurance organization.

All of the above positions can be presented by a citizen both at the stage of pre-trial settlement of the problem and during the trial.

Combating MTPL subrogation

Avoiding subrogation is not difficult. To do this, it is necessary that the damage be covered more than that provided for in the motor vehicle insurance policy. There is a DSAGO policy that covers compensation up to 3,000,000 rubles (depending on the conditions of registration). Moreover, the difference in the cost of such a contract is quite acceptable for the average Russian motorist.

DSAGO will be an excellent addition to OSAGO. Thanks to it, the insured amount for which restoration work can be carried out will be significantly increased.

Reduced payment amount

It is not uncommon for the assessment of damage caused to be carried out with violations. For example, the estimate may take into account the cost of repair work for such damage, the occurrence of which is not due to actual traffic accidents, but to other reasons.

In this regard, it is recommended to request and carefully analyze all materials on which the corresponding calculations were carried out. If inaccurate information or significant errors have been identified, it is imperative to send a written objection to the received claim to the authorized structures.

If the person responsible for the incident was not invited to conduct an expert assessment, then he should write an application to cancel the default judgment on the basis that the responsible organization did not send a notification about the place and time of the inspection of the damaged vehicle. In this case, it makes sense to object to the recognition of established value.

Additionally, you need to submit a request for an independent forensic examination. If the car has already been restored, then the assessment can be established based on the available case materials.

IMPORTANT

There is a high probability that when re-determining the cost, a clear overestimation of values ​​will be revealed, as well as other violations in the preparation of the expert opinion. If these positions are discovered, then it is possible not only to reduce the amount of subrogation requirements from the culprit of the accident, but also to get rid of them altogether.

How to prevent the possibility of a subrogation claim

The appearance of subrogation in relation to the driver is possible if the following 2 conditions are met:

• The driver is at fault in the incident;
• The injured driver has a valid CASCO insurance.

If both requirements are satisfied, then steps must be taken to reduce the likelihood of subrogation claims. Don't rely on chance. To achieve this goal you need to do the following:

1. If guilt is not obvious, it should not be admitted;
2. It is important to always stay in touch with the victim of an accident, find out information about assessing the amount of damage caused and its compensation;
3. It is necessary to notify the insurer of your desire to be present during the technical examination, it is good to attend it with your expert;
4. If you disagree with the results of the damage inspection, they should be contested;
5. It is important to ask for a copy of the results and have another expert examine you if you have doubts about the objectivity of the work performed.

As a rule, a subrogation claim is filed after 24-30 months, when the car has long been restored, and sometimes sold. It is extremely difficult to prove something in such a situation. Therefore, it is better to keep documentation of the accident for 3 years.

How to avoid subrogation from the insurance company to the culprit of the accident under compulsory motor liability insurance?

Typically, the insurer will file a claim for the return of funds through subrogation several years after the accident, but before the statute of limitations expires. During this time, the details of what happened are erased from the citizen’s memory. Therefore, it is easier for the insurer to claim funds. If a driver wants to avoid subrogation from the insurance company, it is recommended that all documents regarding the accident be retained, regardless of how much time has passed.

You must be careful when driving. You must follow traffic rules. This will reduce the risk of an emergency and the citizen being found to be the culprit of the incident. If an accident does occur, it will be possible to avoid subrogation from the person responsible for the accident in the following situations:

1. The citizen has a DSAGO policy. It involves a larger limit than a classic car license.
2. We must try to prove innocence. Subrogation applies only to the person whose actions caused the accident. However, the driver can be influenced by external factors. To justify yourself in court and relieve yourself of responsibility for the incident, you need to hire a competent lawyer.
3. The insurer is trying to inflate the cost of repairs. The violation will have to be proven. To do this, you need to carefully study the documentation relating to the work performed. The papers should not contain parts that were not damaged as a result of the accident. You also need to pay attention to the overall price. It shouldn't be overpriced. There are cases when the same part or work done was written off several times. A citizen has the right to an independent examination.
4. The statute of limitations has expired. As a general rule, its duration is 3 years.
5. There are other violations on the part of the insurance company. Thus, if the culprit of the incident did not receive an invitation to conduct an examination, this serves as a basis for putting forward a demand to invalidate the result.

Experts recommend maintaining contact with the victim. By contacting him, a citizen will be able to find out the nuances of the damage assessment process and the amount of compensation provided. It is necessary to inform the insurer of your desire to be present during the examination.

Notices received from the insurance company, as well as subpoenas, cannot be ignored. If the citizen does not attend the hearing, the decision will be made in favor of the plaintiff who provided the evidence. In this case, it will not be possible to avoid subrogation. The claims will be satisfied even if the statute of limitations has expired.

Not all insurers want to pursue legal proceedings. You can try to negotiate the terms of subrogation directly with the institution. So, the law does not prohibit asking for installments. Often the insurer agrees to make concessions. Sometimes it is possible to reduce the amount of subrogation. There are known situations when the size of the requirements was reduced by half.

What to do to avoid paying subrogation under MTPL

Even if the insurer has already made a subrogation claim, one of the following conditions must be met:

• The insured person has a valid DSAGO. In this case, it is necessary to demand that the insurer with whom the policy is issued compensate for the damage caused.
• Prove that less damage was caused to the car than the insurance company calculated.
• Presence of other violations on the part of the insurer.
• Managed to prove his own innocence in a traffic accident.
• The insurance company committed violations.

Each of the methods can be used at the stage of pre-trial conflict resolution or during trial.

Innocent in a traffic accident

There are special deadlines for appealing traffic violations. This can only be done if the driver is not at fault.

Subrogation cannot be used against someone who is not at fault for causing the damage.

In a number of situations, guilt can be controversial (an example is a situation with mutual guilt). In this case, it is necessary to provide evidence of the absence of direct guilt. This will allow the judge to rule that the insurer's claims are inapplicable.

Availability of a valid DSAGO

If the driver has voluntary motor third party liability insurance with the required amount of coverage, then no problems will arise. You just need to contact the insurer with whom the contract is concluded. The organization will cover the amount within the agreement.

Other amount of damage caused

The amount of damage caused is not always determined correctly. For example, the estimate may include the cost of restoration work that was required as a result of a traffic incident.

It is important to request all materials used to calculate the required compensation and study them in detail. If false information or significant errors in calculations are discovered, an objection must be submitted in writing. Also, an application should be submitted if the driver was not invited for inspection, this will allow absentee decisions to be canceled. The explanations may indicate the lack of notification of its implementation. As a result, it was not possible to object to certain injuries being found to have been caused by an accident.

If necessary, you can submit a request for a forensic examination of the car. If the vehicle has been repaired, an examination may be carried out based on the case materials. Perhaps it will confirm a significant overestimation of the cost of damage caused. If fraud is discovered, the judge will refuse to satisfy the subrogation claim.

Subrogation in case of an accident

A traffic accident can cause damage to the insured property - a car. If the injured party’s car was insured under CASCO, then the person at fault for the accident can expect to receive a claim from the insurance company for compensation for damage through subrogation .

What is subrogation in a car accident?

Subrogation in case of an accident means the transfer of the right to the insurance company that paid the insurance compensation to the injured party to submit a claim for compensation for damage to the culprit of the accident.

Example. An accident occurred involving Hyundai Solaris and Honda Accord cars, as a result of which property damage was caused to the owner of the Honda. This car was insured under a CASCO contract, and the insurance company fully compensated its owner for the damage caused. Taking into account the norms of the Civil Code of the Russian Federation (Article 965), the insurance company turned to the owner of the Hyundai car, who was guilty of the accident, with a demand to compensate for the damage.

According to current legislation, subrogation is possible not only in case of an accident, but also in cases of damage to other insured property. Subrogation related specifically to road traffic accidents has gained the most popularity.

How does an insurance company make a claim?

Usually, after an accident, quite a lot of time passes before the insurance company submits claims and the person at fault conveniently forgets about what happened. Often, a car owner receives a letter from the insurance company 2 or more years after the accident. The demand letter may contain a description of the incident, the fact of payment of insurance compensation to the victim and a direct requirement to pay a certain amount to the insurance company. Sometimes in the letter you can find a calculation of the amount, its justification and documents confirming the occurrence of the debt.

The recipient of this requirement has several options:

• fully satisfy the claim of the insurance company and pay the required amount;
• send a response letter to the insurance company with your own calculations of the amount to be paid and pay part of the amount (if the person at fault for the accident does not agree with the insurance company’s calculations);
• completely refuse compensation for damages.

In the second and third cases, the insurance company may file a claim for damages through subrogation. If the court confirms the legality of the insurance company’s claims, then the person at fault for the accident will have to not only compensate for the damage, but also pay the state duty (and, if necessary, the cost of the examination).

How to minimize risks in case of subrogation in case of an accident?

Those who have become the “lucky” owner of a claim from an insurance company for damages should take into account some of the features of subrogation in case of an accident.

1. The insurance contract may provide for the impossibility of subrogation (with the exception of intentional causing of harm, in which case the agreement on the absence of subrogation is void).
2. The insurance company can claim compensation for damage from the person at fault for the accident only within the limits of the insurance compensation it has paid .
3. If the culprit of the accident has MTPL insurance, his insurance company will compensate the victim’s insurer for damages in the amount of 120 thousand rubles. If this amount is not enough to cover the losses incurred by the victim, then the insurer of the injured party may turn to the culprit of the accident to compensate for the damage through subrogation. That is, when the amount of losses resulting from an accident does not exceed 120 thousand rubles (the standard amount of insurance compensation under compulsory motor liability insurance), then the insurer of the victim does not have the right to contact the culprit of the accident (if there is compulsory motor liability insurance). If the amount of losses exceeds the specified amount, the insurance company can only claim an amount that exceeds 120 thousand rubles. Example: As a result of an accident, a Toyota car insured under CASCO was damaged and an amount of 130 thousand rubles was required to restore it. The insurance company that paid the insurance compensation to the owner of this car has the right to demand from the culprit of the accident (the owner of the Hyundai car) compensation for damage by way of subrogation in the amount of 10 thousand rubles, since the latter’s liability was insured under compulsory motor liability insurance and his insurance company transferred to the insurer of the injured party an amount in the amount of 120 thousand rubles.
4. Often the amount claimed by the insurance company is significantly inflated . In fact, the amount of damage may be significantly reduced or you may not have to pay anything at all. Often, during legal proceedings, the results of the examination show that the amount spent on repairing the car does not correspond to the damage that was reflected in the certificate of the traffic police officer when inspecting the car after the accident. Accordingly, the court, based on the results of the examination, establishes a lower amount of damage caused and the amount that the culprit of the accident must pay to the insurer is reduced. Example: Rosgosstrakh paid the injured party an insurance compensation in the amount of about 180 thousand rubles and, accordingly, demanded compensation for damage from the culprit of the incident in the amount of 60 thousand rubles. At the same time, an examination carried out at the initiative of the defendant established that the cost of restoration repairs was 117 thousand rubles and, accordingly, did not exceed the insured amount under compulsory motor liability insurance (120 thousand rubles). Taking into account this situation, the Volzhsky City Court of the Volgograd Region, in its decision in case No. 2-647/2012, completely refused to satisfy the claims of the insurance company and demanded that it reimburse the defendant for the cost of the representative’s services and the costs of conducting the examination.
5. When making a decision, the court also takes into account the degree of guilt of the participants in the accident. For example, the amount to be recovered can be significantly reduced if the fault of another participant in the accident is proven.
6. Often, a court, in the context of a dispute with an insurance company, establishes the absence of fault of a participant in an accident in what happened, from which the insurance company demands compensation for damages by way of subrogation, and refuses to satisfy its claims (see, for example, Resolution of the Federal Antimonopoly Service of the Volga-Vyatka District dated July 1, 2014 in the case N A11-3026/2013).

We can help

If you have received a letter from an insurance company demanding compensation for damage through subrogation, we are ready to assist you in resolving the dispute with the insurance company:

• at the pre-trial settlement stage (we will check the accuracy of the insurance company’s calculations and prepare an objection to their claim);
• We will prepare a response to the claim and represent your interests in court.

What to do when receiving a subrogation claim

Under no circumstances should the requirement be ignored. If the insurance company sees that the person at fault for the accident did not react in any way, it will file a lawsuit. In case of failure to appear at the meeting, the plaintiff’s demands will most likely be satisfied even if there are serious violations. The law sets a 3-year period for filing a claim after an accident. The consideration of the case itself may take place later.

It is best to settle the matter before going to court. In any case, such attempts will be welcomed by the judge. Such actions will be viewed in a positive light for the defendant. Therefore, it is better to try to settle the matter. Get acquainted with the requirements of the insurance organization, determine whether they are legal. It would be ideal if the case has expired - more than 3 years have passed since compensation for the accident.

If the deadlines are met, the following steps must be completed.

Verification of documents on subrogation under compulsory motor liability insurance

When filing a claim for subrogation, the insurer is obliged to confirm it with the following documentation:

• CASCO agreement with the victim, which was in force at the time of the traffic accident;
• evidence of guilt - a decision on violation of traffic rules, a decision to initiate a criminal case, a court decision, etc.;
• confirmation of payment for compensation of losses - cash or money transfer to a bank account;
• documents from the road inspection that confirm the traffic accident;
• confirmation of the amount of damage - the conclusion of an expert examination of the damage with a detailed description and images, determination of the cost of restoration or an estimate from a car service center, an act of acceptance and delivery of the results of restoration work.

If any of the documents listed above are missing, you must send a request to provide the necessary documentation in response to the claim. Without this, the motorist has every right not to make the payment.

What is subrogation of the insurance company to the culprit of the accident under compulsory motor liability insurance?

Subrogation under compulsory motor liability insurance is the transfer of the right of claim from the person who suffered damage to the insurance company. The possibility of carrying out an action is secured by Article 965 of the Civil Code of the Russian Federation. The method makes it possible to exclude the victim from receiving compensation 2 times in a row. Subrogation applies to each insured event. However, the person responsible for the incident does not always notice her presence. The need to provide compensation to the victim's insurer rests with the company that sold the MTPL policy to the person whose actions led to the accident.

Attention! If you have any questions, you can chat for free with a lawyer at the bottom of the screen or call Moscow; Saint Petersburg; Free call for all of Russia.

The maximum amount of compensation under compulsory motor liability insurance is 400,000 rubles. The rule is enshrined in Federal Law No. 40 of April 25, 2002. However, in practice, the cost of repairing damage may be higher. Let's say the victim had CASCO insurance, and the insurance company provided him with a payment in the amount of 600,000 rubles. By virtue of the contract, the organization that sold the compulsory motor liability insurance to the perpetrator of the incident does not provide more than 400,000 rubles. There is a difference of 200,000 rubles between the amount paid and the amount received. They will certainly try to recover this amount of money from the culprit of the incident.

Insurance companies do not immediately use the right to subrogation under compulsory motor liability insurance. Usually the application is submitted after 2 years from the date of the incident. This is done so that the citizen forgets the details of what happened. Therefore, it is important to check the statute of limitations.

How to check the legality of subrogation claims under MTPL

It is possible that insurance companies resort to tricks to make money on the at-fault driver. Therefore, all available documents should be studied with special attention. It is best to enlist the help of a professional, this will avoid mistakes that allow you not to make a payment.

Sometimes false information is provided regarding the amount of damage, since it will not be difficult for the insurer to obtain those indicators that are beneficial to it. First of all, you should check the following:

• Have all the spare parts on the list been replaced?
• Is the indicated cost of spare parts and restoration work realistic;
• Whether the indicated damage corresponds to a specific road accident;
• Is each part marked only once (sometimes parts are listed several times).

It is best to contact a professional who will check all the calculations made. If there is erroneous information that is strikingly different from the real one, it must be written down on paper. The document can serve as the basis for constructive communication with the insurer, and will also be useful in court if the matter comes to trial.

How to negotiate subrogation under MTPL

If, after an inspection, it turns out that the insurance company is making legitimate demands, and reimbursement of its expenses cannot be avoided, it is best to come to an agreement. Insurers themselves do not like to participate in litigation, so they are usually willing to make concessions, reducing the amount of compensation or allowing the money to be transferred in installments.

Trial

If it was not possible to resolve the problem peacefully, then the insurance company has every right to file a lawsuit. The company does not always try to solve the problem peacefully, but simply goes to court. The defendant may find out about this when he receives a summons to the hearing.

Proof

At this stage, the same steps are repeated as when filing a claim with the insurer, checking the legality of the claims. The only difference is that disagreement is expressed not to the insurance organization, but to the judge.

If there are doubts regarding the assessment, a request for a forensic examination can be submitted. It is usually performed using written information and photographs. When conducting technical examinations before the start of the trial, their results must be attached.

Another important argument is the lack of invitations to conduct an expert examination of the damage to the victim’s vehicle. In this case, the insurer's expert's conclusion may be declared invalid.

It is important to pay attention to documentation of guilt. If the conclusions are ambiguous, you can submit a request for another examination.

Judgment

If violations are detected in the actions of the insurance organization, the court will in any case determine this and issue a refusal result. Even if the court of first instance decides in favor of the insurer, do not despair.

If there are grounds for a dispute, it makes sense to file an appeal. Higher courts often make decisions in favor of the car owner.

Regulatory regulation

The main document under which the right to subrogation on the part of the insurer arises is the Civil Code of the country. It is in it that all the principles and conditions under which it occurs are spelled out. In its concept, one can even say that subrogation under compulsory motor insurance has replaced the recourse requirement. But it has not been completely eradicated, since recourse is applied in all cases where it is not possible to use subrogation against the guilty party.

Some points are also spelled out in the law, according to which it is necessary to carry out compulsory vehicle insurance. It specifies not only the points on which this right can be applied, but also regulates the amount, which cannot exceed all amounts of payments to the injured party. There is only one nuance here, according to the regulations, which concerns the case of a demand from the culprit of the incident for all expenses incurred by the insurer related to the consideration of the situation. This may include litigation, appointment of necessary examinations, expert assessments and much more.

Judicial practice in considering subrogation under compulsory motor liability insurance

Often, motorists disagree with the fact that they are being asked for compensation under subrogation or do not know how to resolve the dispute so as not to bring the matter to trial. In some cases, insurance companies will file a lawsuit without first notifying the at-fault motorist.

Judicial practice in matters of subrogation under compulsory motor liability insurance is very wide. A wide variety of situations are considered. Let's get acquainted with those that are found more often than others.

The driver has a valid DSAGO policy

It was rare, but it happened that even when a DSAGO agreement was concluded, a lawsuit for payment of subrogation was still filed. The court refused to satisfy it, since the damage should be compensated under the current additional insurance agreement.

Fraud by insurance companies regarding subrogation under MTPL

A significant share of litigation due to subrogation is due to the exchange actions of the insurer. If there is a DSAGO, all problems are resolved pre-trial and there are no legal reasons not to pay, the court will never invent them.

The legal processes are identical in most cases. The insurer's experts conduct an inspection with an overestimation of the cost of parts several times over, declare the need to replace spare parts that can successfully cope with their loads, and similar situations.

Another situation is that two and a half years after the accident, a claim is sent to the at-fault driver, who no longer remembers the incident on the road. It states the requirement to pay the required amount. If refused, the insurer sends the case to court. In such situations, defendants often turned to professional lawyers.

During forensic examinations, an overestimation is often established; the results of technical examinations are declared invalid, since the defendant did not receive information about their conduct. The court does not satisfy the insurer's claim.

With the increase in compensation amounts under compulsory motor liability insurance, the use of such recovery schemes from the at-fault driver occurs much less frequently.

Court decisions on payment

If the at-fault driver fails to prove the validity of the cancellation of subrogation, the court will make a decision to collect the required amount.

Subrogation from an insurance company under compulsory motor liability insurance

Some drivers, when they learn about subrogation payments, try to get it reimbursed by the insurer.

Subrogation is the transfer of rights from the insured to an insurance organization. In other words, only the insurer can receive it. Recovery under subrogation can be made exclusively by the insurer and exclusively from the at-fault driver. This is indicated by the very definition of this term. Therefore, receiving subrogation from the insurer is no longer subrogation.

Is it possible to avoid subrogation under CASCO?

There are two ways to avoid subrogation payments:

1. In a pre-trial manner.
2. By filing a claim in court.

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The culprit of an accident very often initiates legal proceedings in order to avoid subrogation payments by any means. As for the victim’s insurance company, it seeks to resolve the issue peacefully, without resorting to court, and sends a claim to the initiator of the accident.

In this regard, if the culprit of the accident admits his guilt, and the amount of compensation is not very large, then it is best to do without a trial and pay the insurance company money. If the subject understands that the second participant in the accident is also at fault, then it is possible to provide a reasoned response to the insurer’s letter. The Investigative Committee will withdraw the claim if the defendant has a good evidence base and an experienced specialist is involved in the case.

It is also very important to take into account the correctness of the claim. If it only indicates the amount of damage, information about the accident, and also a request to repay the debt, then this is incorrect. The following documents must be attached to the document:

1. Confirmation of the amount of damage caused. For example, a technical inspection report.
2. Confirmation of the guilt of the recipient of the claim. For example, a court order.
3. Confirmation of the insurance company's right to subrogation. This may be a copy of the insurance policy.

In addition to the above documents, additional documents may be attached to the claim.

Arbitrage practice

Judicial practice regarding subrogation in CASCO insurance can have several outcomes:

1. The court sides with the insurance company. This means that the person at fault for the accident will need to pay the entire amount of the debt. In some cases, the court makes concessions and allows the debtor to pay in installments.
2. The person at fault for the accident wins, since the statute of limitations has expired.

How can you avoid subrogation under CASCO and how not to pay?

In fact, there are several options, but, as a rule, the essence comes down to one.

It is necessary to ensure that the amount of payment under the MTPL agreement is sufficient to pay off the insured event. This is not an easy task, however, our specialists cope with it in many cases.

Actions that will help in this situation should be aimed at reducing the overall amount of compensation for damage in a road accident. Is it possible to reduce the amount?

Let's briefly list the possible options:

1. Protest the decision, which is set out in the conclusion of the traffic police. That is, to achieve mutual blame or shift it to another participant in the accident.
2. Challenge the conclusion about the cost of repairing a broken car.

Here it must be said that independent examinations often make conclusions different from those reached by traffic cops or insurers. So there are chances.

Real cases from judicial practice on subrogation under the current compulsory motor liability insurance

Today, road accidents have become commonplace. Insurance organizations are constantly faced with the need to compensate for damage. Their requests are not always lawful, everyone knows this, including judges. Let's look at examples of real litigation.

Situation 1. The car of a victim in an accident received damage worth 573 thousand rubles

The guilty driver did not deny his own guilt; he was ready to compensate for the damage caused. The costs of restoration were fully covered by his insurer, since the parties only had compulsory motor liability insurance policies.

However, the law “On Compulsory Motor Liability Insurance” regulates the maximum payment in the amount of 400 thousand rubles. Therefore, the court ordered the driver at fault in the incident to compensate the difference of 173 thousand rubles.

Situation 2. After an accident, vehicles need to be sent for restoration, the amount of damage is 300 thousand rubles

The insurance premium to the victim was paid from the funds of the insurance organization of the person responsible for the incident.

During the trial, it was established that the driver was not the initiator of the accident. The incident occurred under the influence of other factors, so the insurer could not use the right of subrogation.

As a result, the restoration of the victim’s car was carried out at the expense of the auto insurance policy.

Situation 3. After the accident, the victim was paid all the money required to restore the vehicle

The insurer covered the costs; over time, he demanded subrogation from the client in the amount of 88 thousand rubles. The court found that the traffic accident certificate did not include all the items. The judge noted and remembered this, so the decision was made in favor of the motorist.

An additional examination of the damaged vehicle was carried out, the estimated amount turned out to be 35 thousand more than indicated in the document, therefore the insurance company of the at-fault motorist is obliged to cover the costs of the injured driver.

Arbitrage practice

The plaintiff does not always put forward legitimate demands. Therefore, some of the claims are not satisfied. The decision depends on the specifics of the situation. Thus, the victim suffered damage in the amount of 600,000 rubles. The culprit of the incident did not deny guilt and was ready to bear responsibility for what he had done. The insurance company covered the repair costs. Both parties only had a compulsory motor liability insurance policy. Federal Law No. 40 “On Motor Vehicles” limits the maximum payment to 400,000 rubles. Therefore, the remaining 200,000 rubles. The court ordered the perpetrator of the incident to pay himself.

The victim was provided compensation under CASCO in full. To cover the costs, the insurer paid 487,000 rubles. Subrogation was raised against the culprit of the incident. However, during the trial it turned out that a number of documents were drawn up with errors. This fact was taken into account. As a result, the insurer's claims were not satisfied.

Recommendations that will help you when requesting payment of subrogation under the current compulsory motor liability insurance policy

• If possible, it is worth adding to the DSAGO vehicle license, this will provide more extensive protection;
• it is better to immediately find out whether the victim has CASCO insurance;
• if the injured driver has a valid CASCO insurance, you need to keep in touch with him, write an application to his insurance with a request to attend an examination of the vehicle;
• in any case, it is necessary to attend a technical examination of the damage caused; if possible, you should take with you a qualified appraiser or simply someone who is well versed in this;
• if the driver is not the culprit of the accident, then in no case should you take the blame;
• in case of drawing up a Europrotocol, it is necessary to ask the victim to write a receipt stating that the amount of his claim will not exceed 100 thousand rubles;
• Make sure that when making a claim, 3 years have not passed since the accident.

So, subrogation presupposes the right of the parties to the insurance agreement to recover compensation for damage caused from the at-fault incident. It can be used by the insurance organization of the culprit and the victim. Knowing the specifics of subrogation, its legislative basis and judicial practice, you can soberly assess your chances of success. Try to understand the essence of the matter well, and then insurers will not be able to outsmart you.

Useful tips

• a voluntary liability insurance agreement will help you not to worry about subrogation;
• find out whether the victim has a CASCO agreement;
• if the victim has CASCO insurance, keep in touch with him, write a statement to his insurer, expressing a desire to be at the vehicle inspection;
• be sure to be present during the inspection, preferably with a specialist in this matter;
• do not agree to plead guilty if in fact you are not;
• check that three years have not passed since the date of the accident when claims are made against you.

Statute of limitations

The statute of limitations for subrogation from the at-fault party is the time period during which the insurance company can exercise the right to go to court to obtain compensation for costs from the at-fault party. Important: if the deadline is not met, the injured party is deprived of the opportunity to implement the relevant requirements.

In the situation under consideration, the limitation period is set at 3 years, while other insurance issues usually must be resolved within 2 years. It must be taken into account that the defendant’s disregard of claims from the insurance company while waiting until the period for appeal has expired is generally recognized by the court as unfair actions. As a result, the insurance company can file a petition to restore the deadlines and receive the payments due.