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Subrogation Settlement Agreement for Philippines

Subrogation Settlement Agreement Template for Philippines

A Subrogation Settlement Agreement under Philippine law is a legally binding document that formalizes the resolution of a subrogation claim between an insurer, the insured party, and a third party responsible for the loss. This agreement, governed by the Civil Code of the Philippines and the Insurance Code (Republic Act No. 10607), documents the transfer of rights from the insured to the insurer and establishes the terms of settlement with the responsible party. It includes detailed provisions for payment, release of claims, representations and warranties, and ensures compliance with Philippine legal requirements for subrogation and settlement agreements.

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What is a Subrogation Settlement Agreement?

The Subrogation Settlement Agreement is a crucial document used in the Philippine insurance industry when an insurer seeks to recover amounts paid to an insured from a third party responsible for the loss. This document becomes necessary after an insurance company has paid a claim to their insured and wishes to exercise their right of subrogation against the responsible party. The agreement must comply with Philippine legal requirements, particularly the Civil Code and Insurance Code provisions regarding subrogation rights and settlements. It typically includes details of the original incident, the insurance claim payment, the agreed settlement amount, and the terms of resolution. The document serves multiple purposes: it confirms the transfer of rights from the insured to the insurer, documents the settlement terms with the responsible party, and provides a full release of claims upon satisfaction of the agreed terms.

What sections should be included in a Subrogation Settlement Agreement?

1. Parties: Identifies all parties to the agreement: the insurer (subrogee), the insured (subrogor), and the third party (typically the party responsible for the loss)

2. Background: Describes the original incident, the insurance claim, payment made by the insurer, and the basis for the subrogation claim

3. Definitions: Defines key terms used throughout the agreement, including 'Claim', 'Loss', 'Settlement Amount', and 'Subrogation Rights'

4. Settlement Amount: Specifies the agreed settlement sum and payment terms, including payment method and deadline

5. Release and Discharge: Details the scope of the release granted upon payment of the settlement amount

6. Subrogation and Assignment: Formally documents the transfer of rights from the insured to the insurer

7. Representations and Warranties: Contains statements of fact and guarantees made by each party

8. Confidentiality: Sets out obligations regarding the confidentiality of the settlement terms

9. Governing Law and Jurisdiction: Specifies Philippine law as governing law and designates jurisdiction for disputes

10. Execution: Signature blocks and execution formalities

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

1. Multiple Insurers: Required when multiple insurers are involved in the subrogation claim, detailing the allocation of rights and settlement amounts

2. Tax Provisions: Include when there are specific tax implications that need to be addressed

3. Further Assurance: Include when additional documentation or actions may be required post-settlement

4. Non-Admission of Liability: Optional clause stating that the settlement does not constitute admission of liability

5. Costs: Include when there's a need to address legal costs and expenses

6. Severability: Include when parties want to ensure partial invalidity doesn't affect entire agreement

What schedules should be included in a Subrogation Settlement Agreement?

1. Schedule 1 - Claim Details: Detailed description of the original incident and insurance claim

2. Schedule 2 - Payment Details: Breakdown of the settlement amount and payment instructions

3. Schedule 3 - Required Documents: List of documents to be exchanged upon settlement

4. Schedule 4 - Original Insurance Policy: Details of the relevant insurance policy under which subrogation rights arise

5. Appendix A - Power of Attorney: If applicable, authorization documents for parties signing on behalf of others

6. Appendix B - Corporate Authorizations: Required corporate resolutions or authorizations for entering into the agreement

Authors

Alex Denne

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

Jurisdiction

Philippines

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions

























Clauses



























Relevant Industries

Insurance

Legal Services

Financial Services

Risk Management

Maritime

Construction

Manufacturing

Transportation

Real Estate

Healthcare

Retail

Logistics

Relevant Teams

Legal

Insurance Claims

Risk Management

Compliance

Corporate Affairs

Finance

Operations

Underwriting

Recovery

Dispute Resolution

Relevant Roles

Insurance Claims Manager

Legal Counsel

Risk Manager

Claims Adjuster

Compliance Officer

Insurance Underwriter

Settlement Officer

Corporate Lawyer

Insurance Operations Manager

Chief Legal Officer

Claims Director

Subrogation Specialist

Recovery Manager

Insurance Administrator

Legal Risk Manager

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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