Recovery by collateral payers (social security subrogation)
The right of bodies that compensated a victim, social security, employer, mutual insurer, to be reimbursed by the liable party and its insurer, by charging against the heads of loss they covered.
When a victim is injured by a liable third party, social security funds, the employer that continued paying salary, the mutual insurer or the personal insurer that paid indemnity benefits have paid part of the loss. They have a subrogated right of recovery against the liable party and its insurer to recoup those sums. Since the 2006 reform, this recovery works head by head: a body's claim is charged only against the head of loss its benefits actually compensated, medical expenses, lost income or professional impact, and no longer against the whole award. The victim also enjoys a right of priority: when compensated only in part, especially where liability is shared, the victim is paid before the body on the remaining amount due. For the liability insurer, the total amount does not change, but the split between victim and bodies shapes negotiations and settlement times.
Article 25 of Act No. 2006-1640 of December 21, 2006, the 2007 social security financing act, required head-by-head set-off, ending the practice that let funds recover from the victim's personal losses, such as pain and suffering.
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