An insurer may not recover a claim it has paid out from you without a valid legal basis. When faced with a recourse claim, ask who received the payment, why you are supposedly liable and which statutory provision or policy clause supports the recovery. Then check the facts, your position as policyholder or driver, and the calculation. A payment to the victim does not in itself prove that you must repay that entire amount.
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Written by Onur Arslan, attorney at Arslan Advocaten. Registered in the specialisation register of the Netherlands Bar for employment law and personal injury. Onur Arslan practised for many years as a corporate lawyer and insolvency trustee (curator) and has extensive experience in financial law disputes. Last updated: 22 September 2026.
A recourse letter can arrive unexpectedly, for example months after a collision. The insurer has paid the other party and is now demanding a large sum from you. It is important first to establish which legal type of recovery you are dealing with.
Three different situations
“The insurer is demanding money from me” can mean three legally different things. Which route applies determines what the insurer must prove and which defence you have. So establish that first.
| Route | Who receives the money? | Legal basis | What must the insurer prove? | Your main defence |
|---|---|---|---|---|
| 1. Subrogation: the victim’s insurer seeks recovery from you as the person who caused the damage | The other party’s insurer | Article 7:962 of the Dutch Civil Code (BW): the claims of its insured pass to the insurer by way of subrogation to the extent that it compensates that loss | That it actually paid out, that you are liable, and the extent of the loss | Dispute liability itself or the amount, or invoke contributory negligence on the part of the victim. Note paragraph 3: no claim against the policyholder, co-insured persons, an insured person’s spouse or registered partner, their other life companion and certain members of the household |
| 2. WAM recourse: your own insurer seeks recovery from you after paying the victim | Your own WAM insurer | Section 15 WAM: an insurer that pays out under the Act while the liability was not covered by the policy has recourse against the liable person | That it was obliged to pay the victim and that, as between it and you, cover was lacking or could be refused | If you are not the policyholder, recourse is excluded unless you could not in good faith assume that your liability was insured. Also check whether the policy reserves the right of recourse (paragraph 2) |
| 3. Recovery of a payment made to you | Your own insurer | Undue payment or a policy provision; sometimes linked to an allegation of deception | Why the payment was not owed, and why the full amount must be repaid | Dispute the legal basis (a mere suspicion is not proof) and the amount; ask for the breakdown |
Where a property or casualty insurer seeks recovery from the liable party who caused the damage, the insurer, after payment, steps into certain rights of the injured party. This is called subrogation. The insurer must then substantiate which claim has passed to it and why you are liable for it.
In certain situations a WAM insurer may be obliged to protect the road traffic victim, while as between the insurer and the policyholder or driver there is no cover. Recourse may then follow. The protection of the victim and your own insurance cover are therefore separate questions.
A third situation is the recovery of money you received yourself, for example because the insurer later claims that a payment was not owed or was obtained by deception. That is not automatically the same recourse route. Always ask which legal basis is being relied on.
Recourse after driving under the influence or without a valid driving licence
An alcohol or driving licence clause may affect insurance cover. That requires an examination of the applicable policy conditions and the facts. Think of the precise exclusion, the alcohol level established, the driving licence requirement and the person who was driving the car.
Under Section 15 WAM, one relevant question is whether you are the policyholder yourself or another liable person. For someone who is not the policyholder, good faith regarding the insurance cover may play a role. Merely saying that you did not read the policy is not a complete assessment of that good faith. Specific reasons to doubt whether cover existed may also be relevant.
The statutory test is set out in Section 15(1) WAM: recourse against a liable person who is not the policyholder is excluded “unless he could not in good faith assume that his liability was covered by insurance”. That good faith is assessed in light of the specific circumstances: did you know whose car it was, were you entitled to assume that insurance was in place, and were there indications that cast doubt on cover? Merely saying that you did not read the policy is not a complete assessment. Paragraph 2 adds that, for cases in which the insurer was entitled to refuse or reduce payment, it must have reserved a right of recourse, so check whether that clause is in the policy. For your own case, have the applicable case law, the policy and the facts assessed together; a general description of alcohol use does not decide every file.
Checking the costs claimed
A recourse letter often states a single total amount. Ask for the breakdown and enter it in this table; each line then raises its own question.
| Item | Claimed | Based on what? | What to request |
|---|---|---|---|
| Payment to the victim | € … | The payment made by the insurer | Proof of payment and the underlying calculation of loss; is there a settlement agreement? |
| Damage to the vehicle | € … | Loss adjuster’s report | The full report, including photos and the valuation method used |
| Personal injury | € … | Medical records and statement of loss | The breakdown per item; is there an expert report, and has contributory negligence been taken into account? |
| Loss adjusting and investigation costs | € … | Third-party invoices | The invoices themselves, with hours and rates, not a standard amount |
| Extrajudicial collection costs | € … | Article 6:96 of the Dutch Civil Code and the Extrajudicial Collection Costs Decree (Besluit BIK) | The reminder with a fourteen-day period; if this is missing in the case of a consumer, these costs are not owed |
| Statutory interest | € … | From what date? | The start date and the calculation; interest does not run from the collision but from the date of default |
| Payments already received | − € … | From you, your insurer or a third party | Check whether everything already paid has been deducted |
What must the insurer prove?
Ask for the legal basis, the evidence of liability, the reason why cover is lacking and a breakdown of the loss paid. It must be clear that the amount claimed relates to the event for which you are supposedly responsible.
In a claim based on rights that have passed to it, the insurer cannot acquire more rights than fit within that statutory transfer. Different conditions may apply to recourse against its own insured. So do not let all questions merge into the statement “we have paid, so you must repay”.
Also check against whom the claim is directed. The registered keeper, the policyholder and the driver are not necessarily the same person. Mere ownership of the car does not, on every legal basis, automatically make you liable for the entire claim.
Checking the amount of the recourse claim
Ask for a breakdown into property damage, personal injury, expert fees, interest and any collection costs. Where advance payments and later final payments were made, ask whether double counting has been ruled out. A rounded total without explanation makes a substantive defence difficult.
You are not automatically entitled to access all of the victim’s personal data in order to assess the claim. The insurer can provide relevant information in a targeted way and redact it where necessary. Ask for sufficient substantiation of cause, reasonableness and extent, without unnecessary medical details.
In personal injury cases, payments can continue for a long time. Have it checked whether the letter contains a final claim or also announces future payments. That distinction is important in negotiations on a settlement.
Which defences may be relevant?
Possible defences concern absence of liability, incorrect attribution to the driver, an exclusion that does not apply, insufficient substantiation or an excessive amount of loss. Limitation and earlier agreements may also be relevant.
In subrogation, there are statutory restrictions on recourse against certain persons and relationships. Which protection applies, and which exceptions to it exist, requires an assessment of the specific relationship and conduct. Do not conclude from this that recourse within family or employment relationships is always impossible.
Even if you are responsible for the accident, there may still be a dispute about the legal basis or the extent of recourse. Admitting a traffic error is not the same as agreeing to every cost item in a later recourse letter.
How to respond to a recourse letter
Acknowledge receipt, state which parts you dispute and request the missing documents. Say that you will respond on the substance once you have received them. If necessary, ask for collection measures to be suspended and ask for confirmation of whether this is granted.
Meanwhile, gather your policy, claim form, correspondence, photos and relevant court documents. Notify any liability or legal expenses insurer that may be involved of the claim. Whether there is cover there must be assessed separately.
A complaint or a request for documents does not automatically stop collection, interest or proceedings. So also respond to formal court documents. Only discuss a payment arrangement once there is clarity about acknowledgement, interest, future loss and final settlement.
Alcohol or drugs: assess cover and recourse separately
An insurer may have paid the injured party and then reclaim money from an insured person. The protection of the injured party and the internal recourse against the insured are separate questions. Ask which policy exclusion or statutory basis is being relied on and which amounts were actually paid.
Check who was the driver, the policyholder and the person being held liable. The knowledge and role of an owner who was not driving may require a separate assessment. A criminal outcome, a measured value or an official police report must be read in the right context.
Ask for a breakdown before you sign a payment arrangement. Also read about liability cover and limitation periods for insurance claims.
Frequently asked questions about recourse by the insurer
Do I have to pay because the insurer has already paid the victim?
Not for that reason alone. There must be an applicable basis for recourse and the insurer must substantiate the claim. The payment and your obligation to repay are separate questions.
Can the insurer recover money from someone who borrowed the car?
In certain circumstances, yes. The position of the driver, the policy and the statutory rules are decisive. In WAM recourse against someone other than the policyholder, good faith may be relevant.
Is recourse the same as a fine?
No. It is usually a civil monetary claim. A traffic fine or criminal case may exist alongside it. The legal assessment in those proceedings is not entirely the same.
May I request a payment arrangement while disputing the claim?
You may, but word carefully what you do and do not acknowledge. Ask for any agreements to be recorded in writing. An arrangement can have consequences for evidence and limitation.
Can I dispute only the amount?
Yes. In that case, make clear that your defence concerns, for example, a specific item of loss, interest or double counting. Have it assessed whether you are not unintentionally acknowledging other parts of the claim.
What if the claim is linked to alleged fraud?
Then the alleged deception, the payment being reclaimed and the investigation costs must also be assessed separately. Read about investigation costs and claims by SODA (the bureau that collects investigation costs on behalf of insurers).
Have a recourse claim assessed
Have you received a request for repayment from an insurer? Contact Arslan Advocaten with the letter and your policy. On the insurance law page you can read more about how we handle disputes with insurers.
Legally reviewed by Onur Arslan, attorney at Arslan Advocaten. Reviewed on 13 September 2026.
Further reading on this topic
- Water damage claim rejected by the insurer: leak, maintenance or cover after all?
- When should you take an insurer to court?
- When may an insurer terminate your policy?
