Subrogation and your Personal Injury Claim – Part One

Subrogation is a major part of any personal injury claim. Whether it be in regard to health insurance or medical payment benefits, also known as medpay. Subrogation is not a term you hear regularly. What it means in regard to your personal injury claim is that in the event of a third party or first party settlement a payor of benefits may be entitled to reimbursement of payments made in regard to accident related treatment. This definition needs to broken down in parts.

In the case of personal injury claims, the entities involved are the injured party, their insurance carrier, and the at-fault driver’s insurance carrier. The injured party’s insurance is generally referred to as the first party insurance carrier, while the at-fault party’s insurance is generally referred to as the third party insurance carrier. A payor of benefits is an entity, generally a health insurance carrier, that pays an injured party’s medical bills for accident related treatment.

See part two of this post for an extended explanation of how subrogation may affect your personal injury claim.