Original scientific paper
https://doi.org/10.21857/mjrl3uozj9
The Commencement and Duration of the Limitation Period for a Subrogated Insurer’s Claim Against a Tortfeasor : Can It Be Any Different?
Gordan Stanković
Adriana Vincenca Padovan
Abstract
The insurers’ subrogation holds a significant place in insurance law. In the Croatian legal system, upon the payment of the insurance proceeds, the insurer ex lege steps into the legal position of the insured in relation to the tortfeasor. This is a particularly important concept of property insurance, based on which the insurer, who has paid the indemnity, can seek compensation from the tortfeasor up to the amount of the indemnity paid.
Procedural and substantive legal challenges arising from this mechanism are often the source of complex legal considerations, especially in terms of the commencement and duration of the limitation period for subrogated claims. The application of the insurer’s subrogation concept in practice raises legal questions, particularly when a dispute over the insured’s claim for insurance indemnity is being argued by the insurer, and a final court decision in such a dispute can only be expected years after the insured’s submission of the insurance indemnity claim.
On the other hand, the law prescribes that the limitation period of the insurer’s subrogated claim against the tortfeasor begins at the same time as the limitation period of the insured’s claim against the tortfeasor, and those two limitation periods expire simultaneously. As a result, there is great likelihood that the claim against the tortfeasor as the liable party will become statute-barred before the insurer has even been subrogated into that claim. This article analyses the concept of the insurer’s subrogation, particularly from the perspective of maritime insurance, with special reference to the issue of the limitation period of the insurer’s subrogated claim.
The authors point out the inconsistency of court decisions and raise arguments for and against maintaining the existing statute of limitations relating to the subrogated insurers’ claims. The discussion includes the relevant case law, a critical analysis of legislative provisions, as well as comparative legal solutions. The authors advocate for the reform of relevant legislative provisions, emphasising the need for new legal mechanisms within the existing legislative framework.
They propose specific amendments de lege ferenda aimed at establishing greater legal certainty and better protection of the insurer’s right to subrogation while preserving the balance of legal interests of the involved parties.
Keywords
insurance contract; marine insurance; insurers’ subrogation; statute of limitations
Hrčak ID:
323886
URI
Publication date:
17.12.2024.
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