Subrogation/third-party claims
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What is a third-party claim?
According to
Idaho Code 72-223 (1) a "third party" is "some person other than the
employer" who has "a legal liability to pay damages" for a worker's injury. The
third party can be sued for damages.
The insurance company is required by law (Idaho Code 72-223) to provide benefits
to the injured worker, regardless of who is at fault. Subrogation is an
interest or right of an insurance company in another's legal right to collect a
debt or damages. The injured worker can seek damages directly from the
third party, and the insurance company has a subrogated right to be reimbursed
for benefits it has paid from damages awarded to the injured worker. If the
injured worker decides not to sue the third party for damages, then the
insurance company has the subrogated right to sue the third party itself to
recover money it has paid on a claim.
Preserve the evidence
In order for the State Insurance Fund to pursue a third-party claim it is
imperative that the evidence be preserved. The State Insurance Fund
should be contacted as soon as possible and advised of any potential
third-party claim. Information should not be released to any person other
than a State Insurance Fund representative or an attorney representing the
State Insurance Fund.
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If a claim is caused by a non-company
person, a machine malfunction or a product malfunction, the State Insurance
Fund should be called immediately.
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Right to recovery
Under the workers compensation system, the State Insurance Fund, acting on
behalf of the employer, has the right to the first recovery of any monies that
may be received from a third-party claim. An employer should notify the
State Insurance Fund:
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When there is knowledge that a third-party claim is being pursued by an
employee for an injury on the job.
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If an employee recovers money for an injury from a third party.
More about subrogation
compUpdate Summer 2000:
Recovering damages [PDF]
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