Comparison of Subrogation With Cession and Regression

Abstract

The purpose of this article is to present one of the most problematic issues in the Civil Code of Georgia, which is manifested in the confusion of the institution of subrogation in insurance law with such institutions as cession and the condition of regression. They are close in content to each other, and this fact makes it difficult to see differences between them. Seeing the difference in content between them has not only theoretical but also practical significance, as each institution is characterized by a different legal outcome, and in each specific case the proper qualification of the relationship is crucial. One of the most practical different legal consequences of the given institutions is revealed in the different terms of the statute of limitations. For example, until 2012, it was unknown to the Georgian court that the statute of limitation of a subrogation starts from the period when the insurer has the right to claim damages against the insurance underwriter. Before then, it was an unknown fact that, different from regression, only legal relationship is established with one obligation in subrogation. In this article, we have discussed the distinctive features of subrogation, cession, and the condition of regression, and the accompanying legal consequences. We have discussed the decisions of the Supreme Court of Georgia, which discuss the differences in the content and results of the above-mentioned institutions. As a result, it was revealed that the practice of the Civil Court of Georgia before 2012 was unknown about the institution of subrogation, which is a really significant problem. It can be said that a uniform practice of the Supreme Court has been established at the Subrogation Institute and the problems that existed before have been solved.