25 January 2007
Bee v Jenson [2006] EWHC 3359 (Comm), [2006] All ER (D) 352 (Dec)
Contractual subrogation is concerned solely with the mutual rights and liabilities of the parties to a contract of insurance.
Where an insurer seeks to recover hire charges for a replacement vehicle provided to its assured after a road traffic accident, the third party who is liable for the accident has to pay reasonable hire charges and is not concerned with the insurance arrangements between the insurer and its assured.
Thus, the claimant’s insurers were entitled to recover the full cost of a hire vehicle from the defendant’s insurers, although they had negotiated an undisclosed discount from the hire company.
