Insurance

Motor Subrogation Recovery — Third-Party at Fault

Recovering a paid claim from a third party who was legally responsible for the accident.

Account NameTypeDebit ($)Credit ($)
Cash / Subrogation ReceivableAsset (+)6,000.00-
Claims Expense (Subrogation Recovery)Expense (-)-6,000.00

💡 Accountant's Note

After paying the insured, the insurer can pursue the at-fault party for recovery (subrogation rights). Recoveries are recognized when virtually certain and reduce the net claims cost for the period.

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