After payment of a claim, its often the case that the insurer will be able recover part of the claim amount from other sources. For example, a third party considered liable for the insured event may be pursued under subrogation rights.
Recoveries can also be made from reinsurers who reinsured the same risk or other insurers under co – insurance arrangements. When the total loss claim has been settled where there is salvage, the insurer ma disposes the salvage again in pursuit of subrogation rights.
