Subrogation. - An insurer’s rights at law to take over the insured’s rights, following a claim payment to recover the payment from a third party responsible for the loss. Usually, this will be a negligent party who has breached his or her duty of care, but subrogation can also arise under contract, such as a lease or “hold harmless” agreement. The Insurance Contracts Act (1984) places some limits on recovery from family members. .