Subrogation

Legal term to substitute one creditor to another, allowing the insurer to turn against the person in charge of the damage.
The holder of a right of claim, called the subrogor, transmits to the beneficiary of the subrogation, called the subrogee, the claim.
Subrogation allows the insurer to have the right to appeal against the customer.

In the case of a credit insurance contract, the company has 2 to 4 months after the first unpaid invoice to attempt to collect a claim. The company is then subrogated to the rights of the insured. The insurer may become subrograted in his rgihts, privileges and actions against the debtor.
The insurance company can then act in place of its customer and implement all recovery procedures ( amicable debt recovery, judicial recovery …) to recover the commercial debt.

If, after a waiting period of 3 to 6 months from the declaration and delivery of the claim, the claim is not recoverable despite recovery procedures, the credit insurer indemnifies the customer of a percentage fixed in his contract.

Keywords: Definition Subrogation in credit insurance | Meaning Subrogation in respect of risk against unpaid | Explanation Subrogation for a credit insurer