Indiana lawyer discusses the legal concept of subrogation and why you need to understand it in a car accident, medical malpractice or any other personal injury claim.
Black's law dictionary defines subrogation as:
The substitution of one thing for another, or of one person into the place of another with respect to rights, claims, or securities. Subrogation denotes the putting a third person who has paid a debt in the place of the creditor to whom he has paid it, so as that he may exercise against the debtor
How does subrogation play out in your Indiana personal injury case?
Say you were injured in a car accident and you had to receive medical attention. Your health insurance or car accident insurance paid your medical expenses. Now, the insurance company is exerting a subrogation interest in any proceeds that you may receive from the defendant's insurance company.
When you personal injury cases or goes to trial and you receive a verdict – your lawyer will have to deal with the subrogation interest of the other insurance company paid. Indiana has a subrogation law that requires some insurance companies to pay a pro-rata share of attorney's fees and costs spent to recover the money from the defendant's insurance company.
Subrogation interests and medical payment liens can add a degree of complexity to any Indiana personal injury matter and this is one of the reasons that it may be prudent to hire a lawyer to help you with your case.