Motor Insurance Insolvency Compensation Act 2024

Subrogation

11. (1) Subject to subsections (2) and (3), where the Compensation Body has paid compensation under section 9 to an injured party, the Compensation Body shall be subrogated to the injured party’s rights and remedies against any party liable for the relevant accident (within the meaning of section 9 (7)), including either or both of the following:

(a) the person who caused the relevant accident (within the meaning of section 9 (7));

(b) the person’s relevant insurer as referred to in the definition of “relevant accident” in section 9 (7).

(2) The rights and remedies referred to in subsection (1) shall not apply against the holder of the insurance contract concerned or, as the case may be, the other insured person who caused the accident referred to in that subsection, in so far as the liability of that holder or person would have been covered by the relevant insurer concerned on whose behalf the Compensation Body has paid the compensation referred to in subsection (1).

(3) The subrogation referred to in paragraph 10 of Article 10a, or in paragraph 10 of Article 25a, of the Directive provided for a compensation body (other), in the Member State in respect of which it is such body, is hereby acknowledged and, accordingly—

(a) where the Compensation Body receives reimbursement under section 10 (1) from a compensation body (other), the rights and remedies referred to in subsection (1) otherwise conferred on the Compensation Body in the case of the injured party concerned shall not be exercised by the Compensation Body but may, by virtue of this subsection, be exercised by that compensation body (other), or

(b) where the Compensation Body pays reimbursement under section 10 (4) to a compensation body (other), the rights and remedies referred to in subsection (1) otherwise conferred on the compensation body (other) in the case of the injured party concerned may, by virtue of this subsection, be exercised by the Compensation Body, as if those rights and remedies have been transferred to the Compensation Body by that compensation body (other).