Is there any requirement that an insurer honour a collision claim from its own insured before it can consider a subrogated claim from the other insurer?
Alberta, Canada
The following excerpt is from Axa Pacific Insurance Co. v. Primmum Insurance Co., 2003 ABQB 426 (CanLII):
I agree with the statement in Canadian General Insurance v. Prudential Assurance, supra, that there is nothing in the Agreement to suggest that an insurer must honour a collision claim from its own insured before it can consider a subrogated claim from the other insurer. However, that is not the issue here.
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