A 'hold harmless' clause in respect of a recent accident means that the insurer:

A 'hold harmless' clause effectively transfers the liability from one party to another, often protecting the insured from facing financial repercussions due to claims arising from their actions. When such a clause is in place, the insurer's ability to pursue subrogation rights is impacted because subrogation allows an insurer to recoup losses by claiming against a third party responsible for the loss.

In this context, if a 'hold harmless' clause is in effect, it indicates that the insurer cannot pursue subrogation rights against the party that has agreed to hold the insured harmless. This means that the insurer must absorb the costs associated with the accident without the ability to claim those costs back from the responsible party.

Understanding this concept is crucial in the context of insurance claims, as it highlights how contractual agreements can significantly affect the recovery and liability landscape for both the insured and the insurer.