What is subrogation (subrogatie) under Dutch law?

Dutch term: Subrogatie | Legal basis: Article 6:150 BW

Subrogation (subrogatie) under article 6:150 of the Dutch Civil Code is the transfer of a creditor's rights to a third party who has satisfied the creditor's claim. The most common application is in insurance: when an insurer pays a claim to the insured, the insurer is subrogated to the insured's rights against the party that caused the damage.

Subrogation occurs by operation of law in specific circumstances defined by article 6:150 BW, including payment by a guarantor, a co-debtor, or an insurer. The subrogated party acquires the original claim with all its rights and security interests, but subject to the defences the debtor could have raised against the original creditor.

Why it matters for international businesses

For product liability and transport insurance matters, subrogation determines whether the insurer can pursue a recovery claim against the responsible party in the supply chain.