Recourse: when the insurer pays and then comes after you
Short answer
In cases set out in the Insurance Code the insurer pays the injured party but then has a right of recourse against the at-fault driver for the amount paid.
Why the injured party is paid in any case
Third-party liability exists for the third party. If cover fell away because of the driver’s breach, the injured party would bear the consequences of someone else’s behaviour. So the law separates the two: the claim is paid, and the relationship with the insured is settled separately.
When recourse arises
The typical grounds are driving under the influence of alcohol or drugs, driving without the appropriate licence, refusing testing and leaving the scene. The list is set by law, not by the company’s discretion.
What it means in practice
It means that after such an accident you remain liable for the full amount paid out — sums which, where bodily injury is involved, can be of a different order than vehicle damage. It is the most expensive consequence of a decision that takes a second.
Frequently asked questions
- I had a valid policy — can there still be recourse?
- Yes. Recourse does not deny the policy; it follows from conduct at the accident, as listed in the law.
- Is there a limitation period for the recourse claim?
- There is, but it is a legal assessment on the specific case and must be raised in time.
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