Subrogation Settlement Agreement for Australia

Subrogation Settlement Agreement Template for Australia

This document is an Australian-compliant Subrogation Settlement Agreement used to formalize the resolution of an insurance subrogation claim. It documents the terms and conditions under which an insurer, having paid out a claim to their insured, recovers the paid amount from a third party responsible for the loss. The agreement complies with Australian insurance law, particularly the Insurance Contracts Act 1984 (Cth), and includes provisions for payment terms, releases, warranties, and confidentiality requirements. It serves as a legally binding document that finalizes the subrogation process and prevents future claims relating to the same incident.

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What is a Subrogation Settlement Agreement?

The Subrogation Settlement Agreement is a crucial document in Australian insurance practice, used when an insurer seeks to recover claims paid to their insured from a third party responsible for the loss. This agreement becomes necessary after the insurer has paid their insured's claim and identified a third party legally responsible for the damage or loss. The document complies with Australian federal and state legislation, particularly the Insurance Contracts Act 1984 (Cth) and relevant state Civil Liability Acts. It typically includes detailed information about the original claim, the basis for subrogation, settlement amount, payment terms, and releases. This agreement is essential for formally documenting the resolution of the subrogation claim and ensuring all parties have clarity on their rights and obligations post-settlement.

What sections should be included in a Subrogation Settlement Agreement?

1. Parties: Identifies all parties to the agreement including the insurer, insured, and third party

2. Background: Describes the original insurance policy, the incident/loss, and the basis for the subrogation claim

3. Definitions: Defines key terms used throughout the agreement

4. Settlement Payment: Details the settlement amount and payment terms

5. Release and Discharge: Specifies the scope of claims being released through the settlement

6. Subrogation Rights: Confirms the insurer's exercise of subrogation rights and the basis for recovery

7. Representations and Warranties: Standard warranties about authority to settle and ownership of claims

8. Confidentiality: Provisions regarding confidentiality of the settlement terms

9. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and severability

10. Execution: Signature blocks and execution requirements

What sections are optional to include in a Subrogation Settlement Agreement?

1. Multiple Claims Resolution: Used when the settlement covers multiple insurance claims or incidents

2. Ongoing Obligations: Required when there are continuing obligations post-settlement

3. Special Payment Terms: Included when payment is to be made in instalments or through special arrangements

4. Third Party Rights: Needed when there are other potential claimants or interested parties

5. Tax Provisions: Required when there are specific tax implications to be addressed

6. Regulatory Compliance: Included when specific regulatory requirements need to be addressed

7. Dispute Resolution: Optional detailed dispute resolution procedures beyond standard jurisdiction clauses

What schedules should be included in a Subrogation Settlement Agreement?

1. Schedule 1 - Claim Details: Detailed description of the insurance claim, including date, policy number, and incident details

2. Schedule 2 - Settlement Amount Calculation: Breakdown of the settlement amount including any deductions or adjustments

3. Schedule 3 - Payment Terms: Detailed payment instructions and timeline if payment is not immediate

4. Schedule 4 - Related Claims: List of any related insurance claims or proceedings being settled

5. Appendix A - Supporting Documents: List of relevant documents such as insurance policy, claim forms, and correspondence

6. Appendix B - Authority to Settle: Copies of documents establishing authority to settle (where required)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Genie AI

Sector

Cost

Free to use
Relevant Industries

Insurance

Financial Services

Legal Services

Construction

Manufacturing

Transport and Logistics

Healthcare

Property Management

Retail

Professional Services

Relevant Teams

Legal

Claims

Risk Management

Compliance

Insurance Operations

Underwriting

Broker Relations

Policy Administration

Recovery

Dispute Resolution

Relevant Roles

Insurance Claims Manager

Subrogation Specialist

Claims Adjuster

Legal Counsel

Risk Manager

Insurance Broker

Claims Administrator

Compliance Officer

Settlement Officer

Insurance Operations Manager

Claims Recovery Specialist

Insurance Underwriter

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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