In a broad sense, non-error insurance is any type of insurance contract in which the insured is given compensation for loss by their own insurance company, regardless of the error in the incident that results in a loss. In this sense, it is no different from first-party coverage. However, the term "no-false" is most often used in the context of state/provincial car insurance laws in the United States, Canada, and Australia, where policyholders (and passengers) are not only replaced by insurance policyholders themselves without evidence error, but also restricted in the right to seek remedies through the civil justice system for losses caused by other parties.
Video No-fault insurance
Description
The No-fault system generally frees individuals from the usual responsibility of causing bodily injury if they do so in a car crash; when people buy insurance "liability" under the regime, the insurers bear the bodily injury of the insured and insured passengers caused by car crashes, regardless of which party will be responsible according to the usual lawsuit rules. Non-Error Insurance has the goal of lowering the premium cost by avoiding costly litigation for the cause of the collision, while providing quick payments for injury or loss of property. Further, the no-fault system often provides "set" or "fixed" compensation for certain injuries irrespective of the unique aspects of injury or injured individuals. Workers' compensation funds are usually run as a "no fault" system with usually a fixed schedule for compensation for various injuries.
Uninformed insurance advocates argue that car crashes are inevitable and that driver mistakes are not always high risk and should not always be punished; In addition, they note that the presence of liability insurance makes it difficult for careless or negligent drivers of financial disincentives to litigate; also, uninsured riders often "judge" (ie, can not and will not end up paying their obligations), so in areas with high insured numbers, the faultless system may make more sense.
Critics of mistakes do not argue that dangerous drivers do not pay for the damage it causes to encourage excessive risk behavior, by simply raising higher risk and higher risk ratings as potential consequences, and no jury award or legal settlement. The false detractor also indicates that a legitimate victim with a fine defect finds it difficult to seek recovery without error. Another criticism is that some no-fault jurisdictions have one of the highest auto insurance premiums in the country, but this may be more a matter of effect than a cause (eg, financial savings from no mistakes may just make it more popular in areas with collision risk higher cars, or high insurance rates can lead to more uninsured drivers, increasing the attractiveness of the no-fault system).
Maps No-fault insurance
Origins
The number of traffic accidents causing casualties and debilitating injuries has become in the mid-1960s the source of a litigation explosion that is "suspenseful (and in some extraordinary) areas of the judicial machinery." A lot of legal thinking in the academic world is devoted to the question of whether the tort system should be replaced by other methods to allocate the risk of loss from an accident. The published empirical analysis shows the financial impact of car accidents. The first comprehensive legislative proposal was put forward by Professor Robert E. Keeton of Harvard Law School and Jeffrey O'Connell, later of the University of Illinois, in a legal review article published in the Harvard Law Review, consisting of two chapters of the book to which they would published the following year. The Keeton-O'Connell Plan stipulates that all motor vehicle owners will be required to purchase a new insurance, called "basic protection," in which a victim asks for help for his net economic loss to his or her own car insurance company, the host car or, if the victim is pedestrian, any car involved. Mistakes need not be demonstrated except for damage of over $ 10,000 for bodily injury, which can be deducted from $ 100 for bodily injury and property damage. Recoverable losses under this type of policy exclude pain and suffering and diminish due to restored damage from other sources. The proposal resulted in major discussions in legal and insurance publications with some conclusions that it was too "revolutionary."
In 1967 the Massachusetts state representative Michael Dukakis, a graduate of the 1960 Harvard Law School, introduced a modified version of Keeton-O'Connell's plan in the Massachusetts legislature. The scheme was adopted in 1970. The law was opposed in court over alleged violations of various state and federal constitutional provisions. The scheme is defended by state attorney general and also professor of Harvard Law School, Archibald Cox and Philip Heymann in a brief amicus curiae. The Supreme Judicial Court of Massachusetts rejected the objection by a unanimous decision. The decision paves the way for the adoption of car insurance schemes without problems, the development being driven by the Federal Department of Transportation.
Overview in the United States
Most US states have a system of "traditional litigation" for car insurance in which recovery is governed by provable principles of negligence. However, twelve US states and territories of the Puerto Rican Commonwealth require policyholders to operate under an "error-free" scheme in which individuals injured in car crashes are limited in their ability to seek recovery from other drivers or vehicle owners involved in collisions and additional 8 states have an "add-on" system in which the insured has the right to demand. In 2012, the RAND Corporation published a study that found that the higher costs in the system are no-fault. In the case of economic losses (medical and wage losses), most faultless systems allow disadvantaged parties to seek recovery only for damages not covered by the available first-party insurance benefits. In the case of non-economic (pain-and-suffering) deterioration, most faultless systems allow disadvantaged parties to seek compensation only in cases of "serious" injuries, which can be defined in one of two ways:
- The monetary quantitative threshold that specifies a specific dollar amount (or other currency) to be issued for medical bills before a tort is allowed. The shortcomings of this threshold are: (1) that it may encourage the insured (and their medical providers) to exaggerate medical costs through overuse, and (2) that, unless indexed, it can become ineffective over time because inflation effects on medical costs.
- Qualitative verbal thresholds that state what category of injury is considered serious enough to permit a tort (for example, death, or permanent disability or disability). The advantage of the verbal threshold is that it eliminates incentives to artificially increase the amount of damage to meet some predetermined monetary loss figures. The main disadvantage is that widespread judicial interpretation by court thresholds may cause excessive compensation.
In the three US states - Kentucky, New Jersey, and Pennsylvania - policyholders are allowed to choose between traditional tort and no-fault recovery regimes. Under such a system, known as "optional" or "optional" without error, the policy holder must choose between the "full tort" and "unlimited tort" options at the time the policy is written or updated; once the policy provisions are established the insured can not change his mind without rewriting the policy. In both Kentucky and New Jersey, policyholders who do not make affirmative choices that support either a full suit or a limited lawsuit are given the error-free option by default; while in Pennsylvania, the full-tort option is the default.
Several US states have experimented and abrogated the laws of their absence. Twenty-four countries initially established no statutory mistakes in some form between 1970 and 1975. Colorado unplugged the system without error in 2003. The Florida Sunrise no-fault system on October 1, 2007, but the Florida legislative body passed there is no new legal offense that will take effect January 1, 2008.
In the case of damage to the vehicle and its contents, the claim is still based on an error. The no-fault system focuses only on compensation issues for bodily injury. But it also works in other ways: the policy of paying medical bills for the driver and his friends regardless of who is guilty of the collision.
US and Canadian provinces with an error law
- Pure mistake
-
- Manitoba
- Qualitative threshold
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- Florida
- Hawaii
- Kansas
- Kentucky
- Michigan
- Minnesota
- New Jersey
- New York
- North Dakota
- Ontario
- Pennsylvania
- Quebec (only for bodily injury suffered in car crashes)
- Quantitative threshold
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- Kansas ($ 2000 Threshold)
- Kentucky ($ 1000 Threshold)
- Massachusetts ($ 2000 Threshold)
- Minnesota ($ 4000 Threshold)
- North Dakota ($ 2500 Threshold)
- Saskatchewan ($ 90,000 threshold)
- Utah ($ 3000 Threshold)
- There is no error option
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- Kentucky
- New Jersey
- Pennsylvania
- Saskatchewan
See also
- Accident Compensation Corporation in New Zealand
- Transportation Accident Commission in Victoria, Australia
- No error obligation
External links
- Saskatchewan Government Insurance, Press Release - Options in Auto Insurance .
References
- Insurance Information Institute [1]
- Jost, K. (1992, May 22). Too many lawsuits? CQ Researcher , 2, 433-456
- Randall R. Bovbjerg & amp; Frank A. Sloan, No-Fault For Medical Injury: Theory and Evidence, 67 U. Cin. L. Rev. 53 (1998)
Source of the article : Wikipedia
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