Subrogation Contract for Hong Kong

Subrogation Contract Template for Hong Kong

A Subrogation Contract governed by Hong Kong law is a legal document that facilitates the transfer of rights from an insured party to their insurer following the settlement of an insurance claim. This document, operating within Hong Kong's common law framework, enables the insurer to pursue recovery rights against third parties responsible for the loss. The agreement details the scope of rights transferred, the obligations of both parties, and ensures compliance with Hong Kong insurance regulations and legal requirements. It serves as a crucial instrument in the insurance recovery process, protecting the interests of both the insurer and the insured while maintaining legal certainty in the subrogation process.

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What is a Subrogation Contract?

The Subrogation Contract is a critical document used in the Hong Kong insurance market when an insurer, having paid a claim to their insured, seeks to exercise their right to pursue recovery from third parties responsible for the loss. This document becomes necessary after the settlement of an insurance claim and before the commencement of recovery proceedings. The contract must comply with Hong Kong insurance regulations and common law principles, detailing the transfer of rights, the scope of subrogation, and the ongoing obligations of both parties. It typically includes information about the original insurance policy, the loss event, the settlement amount, and the rights being transferred. The document is particularly important in complex insurance scenarios involving significant claims or multiple parties, and its proper execution is essential for protecting the insurer's recovery rights.

What sections should be included in a Subrogation Contract?

1. Parties: Identification of the parties to the agreement, including the subrogating party (typically the insured) and the party receiving the rights (typically the insurer)

2. Background: Context of the agreement, including reference to the original insurance policy, the loss event, and the payment made by the insurer

3. Definitions: Definitions of key terms used throughout the agreement

4. Transfer of Rights: Core provision detailing the rights being transferred through subrogation

5. Scope of Subrogation: Detailed description of the extent and limitations of the rights being transferred

6. Representations and Warranties: Warranties from the subrogating party regarding ownership and validity of the rights being transferred

7. Obligations of the Parties: Ongoing obligations of both parties, including cooperation in enforcement

8. Consideration: Details of any payment or consideration for the subrogation

9. Further Assurance: Commitment to execute additional documents or take further actions if needed

10. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction for disputes

11. Execution: Signature blocks and execution formalities

What sections are optional to include in a Subrogation Contract?

1. Multiple Parties Provisions: Required when there are multiple insureds or interested parties involved in the subrogation

2. Regulatory Compliance: Specific provisions required for compliance with particular regulatory requirements

3. Confidentiality: Provisions regarding confidentiality of the agreement and related information when sensitive information is involved

4. Assignment: Provisions regarding the ability to assign rights under the agreement when relevant

5. Notices: Formal requirements for notices between parties when ongoing communication is expected

6. Dispute Resolution: Detailed dispute resolution procedures when parties want specific procedures beyond court jurisdiction

7. Foreign Law Compliance: Required when the subrogated rights involve cross-border elements

What schedules should be included in a Subrogation Contract?

1. Schedule 1 - Original Insurance Policy: Copy or key details of the original insurance policy giving rise to subrogation rights

2. Schedule 2 - Description of Loss: Detailed description of the loss or claim giving rise to the subrogation

3. Schedule 3 - Payment Details: Details of the insurance payment made by the insurer

4. Schedule 4 - Related Documents: List and/or copies of relevant documents related to the claim

5. Schedule 5 - Powers of Attorney: Any required powers of attorney or authorizations needed for enforcement of rights

6. Appendix A - Form of Notice: Standard form for any notices required under the agreement

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

Hong Kong

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Insurance

Legal Services

Financial Services

Risk Management

Maritime

Construction

Manufacturing

Transportation

Healthcare

Real Estate

Professional Services

Relevant Teams

Legal

Claims

Risk Management

Compliance

Insurance Operations

Policy Administration

Recovery

Contracts Administration

Underwriting

Corporate Affairs

Relevant Roles

Insurance Claims Manager

Legal Counsel

Risk Manager

Compliance Officer

Claims Adjuster

Insurance Underwriter

Recovery Specialist

Contract Administrator

Insurance Operations Manager

Corporate Lawyer

Policy Administrator

Subrogation Specialist

Claims Director

Legal Risk Officer

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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