In a personal injury claim, an injured person may have received compensation from an insurance company for damages or injuries. As an example, the insurance company may have made a payment to the injured person for the cost of a car which has been totaled.
In this case, the insurance company will usually be entitled to receive a monetary payment equal to the amount paid to its insured for the value of the car if the insured recovers against a third-party (such as a another driver). The insurance company is entitled to receive its payment prior to any payment made to the insured.