Car Insurance: Save More, Spend Less and Avoid Rip-offs

Posted by: headm on: October 5, 2016

This imposition of vicarious liability was with a legislative intervention relating to automobile insurance. In the Automobile Insurance Act, adopted within the Insurance Act generally in most provinces, certain features were imposed upon all automobile liability policies.

In particular, insurers was required to agree to provide cover against liability imposed for legal reasons upon the insured named within the contract and each other person who along with his consent personally drives a car owned by the insured for loss or damage, as a result of the ownership, use or operation from the motor vehicle. How to spend more and save less –  her explanation

This provision addressed the problem posed by the common law element privity of contract  which had caused the Privy Council to deny the claim for indemnity from the daughter of a named insured owner within a liability policy.  More generally, it ensured that, where the owner did have liability insurance, its proceeds were available as compensation to get a third party injured or otherwise caused loss with the negligent operation with the insured vehicle. In other words, it made compensation more widely available. 

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A particularly significant statutory modification of common law contract rules would be a provision giving a hurt third party a direct right of action against the insurer of the person – the automobile owner – primarily liable.  Unlike the direct action provided by respect to non-automobile liability insurance,  the right of action in automobile cases just isn’t prejudiced by the insureds violation of the law or policy terms, or by the invalidity of the policy arising, for instance, from a material non-disclosure.  Although the insurer may, in a few circumstances, claim reimbursement from your insured, the clear reason for this provision was, and it is, to make money open to injured victims. To obtain this benefit victims must have a tort claim up against the insured, but any contractual impediments related to the insured’s rights against the insurer usually do not prevent recovery.

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