subrogation
Also called: hak subrogasi
The insurance company's right to recover from the party that caused the loss after a claim is paid.
What it means
Subrogation is the insurer's right to pursue the party that caused the loss after it has paid the insured's claim. With this right, the insured's position is transferred to the insurer up to the value of the claim paid. The aim is to prevent the insured from receiving compensation twice from different sources. In Indonesia, this principle is common in property and casualty insurance such as vehicles and property.
Why it matters for families
Subrogation explains why families cannot claim full compensation from the party at fault and also receive an insurance claim. If a third party is at fault, the insurer will take over the recovery. Misunderstanding can trigger accusations that the insurance company is taking the family's rights. Understand that this is part of the compensation mechanism, not a reduction of rights.
Example
Suppose the family car is hit by another vehicle and the insurer pays the repair claim. The insurer then bills that cost to the party deemed at fault. The family no longer bills the same amount to that party.
Common misunderstanding
Some people think subrogation means the family loses its right to claim entirely. The correction is that the right is transferred only up to the value of the claim already paid by the insurer.