Subrogation allows an insurer that has compensated an insured loss to pursue relevant recovery rights against a responsible third party, subject to law and the contract. It helps prevent double recovery for the same loss and can shift the cost toward the party that caused it. The insured may need to cooperate with recovery efforts.
After a Nepalese vehicle owner receives a covered accident payment, the insurer may seek recovery from another responsible party. Signing a release or privately settling with that party can affect those rights. Discuss any proposed settlement with the insurer and preserve evidence supporting the claim.