Subrogation Rights System Research

This essay focuses on the insurance subrogation system. The essay is composed of eight chapters, namely: 1) the legal relations involved in the subrogation right, 2) the nature of the subrogation right, 3) the establishment, obtaining and formation of the subrogation right, 4) the conditions under which to exercise the subrogation right, 5) the scope of the subrogation right, 6) the limitations placed on the exercise of the subrogation right, 7) the litigation procedures relevant to the exercise of the subrogation right and 8) the suggestions for the revisions of the relevant insurance law and regulations.Chapter One describes the legal relations involved in the subrogation right. In this Chapter, the author begins by defining the subrogation right and analysing the reasons for the existence of the subrogation right. The author then continues to describe in detail the relevant issues that form the subrogation legal relation, i.e. the subject, the contents and the object of the legal relation. Finally, the author emphasizes and summarizes the object of the subrogation legal relation, i.e. the subrogation right as the focus of this essay, and build the later chapters based on this issue.Chapter Two deals with the nature of the insurance subrogation right. Insurance subrogation right is one form of subrogation rights under Civil Law and can be easily confused with other forms of subrogation rights. The author first demonstrates the characteristics of the insurance subrogation right by comparing this right with other forms of subrogation rights. The author also analyses in detail the nature of the insurance subrogation right. The insurance subrogation right is a legal right and is by nature a transfer of credit, reflecting the nature of the indemnity of insurance. In this Chapter, the author explains that this right is stipulated by law and the name under which a party may exercise this right.Chapter Three expounds upon the establishment, procurement and basis' of the insurance subrogation right. The insurance subrogation right isestablished at the time that the insured accident occurs. The insurer obtains the insurance subrogation right after it pays the assured. The grounds based on which the insurance subrogation right is established are: torteous acts, breaches of contract, acquiring profits improperly and without legal basis and general averages.In Chapter Four the author explains the conditions for the exercise of the insurance subrogation right. This is the most in-depth Chapter in the whole essay. The conditions for the exercise of the insurance subrogation right are the following: 1) Under law, the assured has the right to claim directly against the third party liable for the damage to the insured subject; 2) The damage to the insured subject is covered under the insurance; and 3) The insurer has paid the assured. In the first section, the author discusses the necessity and effects of the insurance interest on the assured's right to claim. In this section, the relationship among the subrogated amount, the number of subrogation rights and the insurance interest are described. Different opinions concerning the insurance interest are introduced and evaluated. The insurer's liability for compensation under the circumstances of double insurance, marine insurance and inland river insurance are analysed in detail, as well as the dilemma faced by insurers under voluntary payment.The subject of Chapter Five focuses on the extent to which the insurance subrogation right can be exercised. Section One is developed based on the extent to which the insurance subrogation right can be exercised. The author states that the exercise of this right should be limited by the assured's direct right to claim and to the amount the insurer has paid the assured. Section Two discusses specifically how insurers should exercise the subrogation right based on the pro-rata principle if the assured is under-insured. In Section Three, the author explains the extent to which this right can be exercised. In Section Four,...