Common use of Right to Recourse Clause in Contracts

Right to Recourse. Greenval becomes party to the insured’s right to compensation in respect of the damage to the extent that it is covered by the insurance and has been paid by the company. However, there will be no recourse for the person who drives the insured vehicle and then causes damage unintentionally or through simple negligence. This limitation does not cover recourse against the person who is liable for damage which is covered through theft insurance or caused in connection with drink driving. To the same extent that Greenval has paid compensation from motor vehicle insurance, according to the Motor Traffic Damage Act (1975:1410), Greenval is entitled to demand repayment of compensation from the person who caused the damage deliberately or through gross negligence or negligence in connection with drink driving. According to the Motor Traffic Damage Act, Greenval may also make a recovery claim against the owner of a railway or tram track, as well as against the person who is liable for damage in accordance with the Product Liability Act (1992:18). The insured must not conclude an agreement with the person who is liable for the damage which means that Greenval’s right of recourse is restricted. If it does happen, Greenval will be entitled to demand a refund from the policyholder for the amount which corresponds to the restriction.