Recalling Insurance Claims

Big auto insurers will be examining past auto accident claims involving Toyota vehicles for possible subrogation action, an insurance arbitration executive predicted, as Allstate said it has a case review underway.

Mark Bunim, president and chief executive of Case Closure--a New York-based insurance arbitration and mediation firm--said large auto insurers are “going to amalgamate their serious claims involving Toyotas over the past five or six months, and see how many of them are tied to or could be tied to the gas pedal recall.”

“Then they are going to try and subrogate. And why not?” added Mr. Bunim.

At Allstate spokesman, Mike Siemienas, said cases are being examined, but it is too early to discuss whether the company will be involved in subrogation activity. “We will wait and see,” he noted.

“Allstate has processes in place because vehicle recalls occur regularly,” Mr. Siemienas added. “Allstate is in the early stages of reviewing claims involving Toyota’s recalled vehicles. The results of this investigation will help Allstate determine the appropriate next steps to take on behalf of our customers.”

In the past after such reviews, the company has instituted subrogation actions, according to Mr. Siemienas.

Since last November, at least 10 negligence lawsuits have been instituted seeking class-action status against Toyota in the United States and Canada, according to the Web site, www.attorneyatlaw.com.