What is Subrogation? | 25 November 2023

Subrogation refers to the substitution of one person in place of another with reference to a lawful claim or right

What is Subrogation?

“Subrogation under Article 2207 of the Civil Code only allows the insurer, as a new creditor who assumes ipso jure the old creditor’s rights without the need of any contract, to go after the debtor. [But] this does not mean that a new obligation is created between the debtor and the insurer. The insurer, as a new creditor, remains bound by the limitations of the old creditor’s claims against the debtor, which includes, among others, the aspect of prescription.” (Filcon Ready Mixed, Inc. v. UCPB General Insurance Company, Inc., G.R. No. 229877, July 15, 2020)

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