---
title: "Subrogation limits against family and a permitted driver"
url: "https://ailawframework.com/precedents/insurance-law/subrogation-limits-against-family"
type: "precedent"
site: "AI Law Framework"
id: "a22-subrogation-limits-against-family"
area_id: "A22"
kind: "checklist"
ai_level: "yellow"
version: 1
task_ids: ["A22-T1-R5"]
law_stated_as_at: "2026-10-22"
---

# Subrogation limits against family and a permitted driver

> Checklist of Insurance Contracts Act 1984 section 65, which limits subrogation against a family member or a person allowed to use the insured vehicle.

Canonical page: https://ailawframework.com/precedents/insurance-law/subrogation-limits-against-family  
Law stated as at: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Checklist. Steps or checks to work through and tick off.
- Practice area: [Insurance Law](https://ailawframework.com/precedents/insurance-law.md)
- Jurisdictions: Australia, Commonwealth
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the authority it cites, for Australia and Commonwealth.

## When to use it

Use when an insurer, having indemnified an insured, is considering recovery from a person with a family or personal relationship to the insured, or from a person the insured allowed to use a road motor vehicle. It does not map contribution between insurers.

## Used for these tasks

- [Map subrogation and contribution rights from the policy and the loss file](https://ailawframework.com/practice/insurance-law/map-subrogation-and-contribution-rights-from-the-policy-and-the-loss-fil.md)

## How AI may be used

AI may list the people named in the claim file and any policy those people hold. It must not decide that conduct was serious or wilful misconduct.

**AI may:**

- List the third parties named in the loss file and any relationship stated in a document
- Note whether a document in the file says the third party is insured for the liability
- Flag a proposed letter that asks the insured to assign rights before payment

**AI must not:**

- Must not decide that a relationship is a family or other personal relationship
- Must not decide that conduct was serious or wilful misconduct
- Must not draft a recovery demand or an assignment

**The lawyer checks:**

- Section 65(1) and the employment and misconduct exceptions in subsection (2) are applied to the facts
- If the third party is insured, recovery does not exceed subsection (4)
- No assignment of rights is sought as a condition of payment

## Authorities

- [Insurance Contracts Act 1984 (Cth) sections 64 and 65, compilation as at 8 October 2026](https://www.legislation.gov.au/C2004A02944/latest)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/insurance-law/subrogation-limits-against-family and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*