“Uninsured motorists coverage” (uninsured motorists coverage), in which the victim purchases insurance by himself, and the insurance is responsible for compensating the victim if the owner or driver of the accident does not have third-party liability insurance (or has hit and run after the accident). the insured.
The origin of uninsured driver insurance
The prototype of uninsured driver insurance was the unsatisfied judgment Insurance issued by the Public Compensation Exchange Center in 1925. This judgment does not fulfill the condition of insurance compensation: the insured has obtained the judgment, but cannot obtain compensation from the at-fault infringer.
In 1919, Massachusetts took the lead in promulgating the “Indemnity Guarantee Act”, which stipulated that the car owner must provide an insurance policy or a bond as a guarantee or indemnity in the event of an accident when the car is registered. The purpose of this law is to require motorists to provide financial guarantees for civil liability for future accidents. However, due to the lag of such guarantees and the inability of the law to compel every car user to fulfill their compensation obligations, it is still difficult for car accident victims to seek compensation. To improve this practice, in 1925, Massachusetts passed the “Automobile Compulsory Insurance Act”, which took effect in 1927. The law requires all car owners in the state to have an auto liability insurance policy or have a payment guarantee. In the event of a traffic accident, the victim can be guaranteed timely financial compensation as a prerequisite for car registration. Since then, other states have also passed the decree. Since the Uninsured Judgment Fund is administered by the state government, insurers have accused the government of interfering in the insurance industry too much. To stop the government’s actions, many insurance companies began to boycott measures, including the introduction of uninsured drivers’ insurance.
There is a clear distinction between uninsured driver insurance and adjudicated non-fulfillment insurance: uninsured driver insurance does not presuppose that the insured has sued the infringer before making a claim.
An overview of uninsured driver insurance
The scope of the insured includes:
(1) the named insured;
(2) the family members of the named insured;
(3) other persons in the vehicle.
Insurance coverage is generally personal injury, but some states also provide for property damage. As stipulated in the terms: “The company agrees to pay the insured for damages due to bodily injury, ill health, death or illness to which the insured is legally entitled to seek compensation from the owner or driver of the uninsured car.”
The uninsured driver insurance adopts the loss compensation principle: (1) If the insured can obtain compensation from the employee compensation insurance, the insurance will only cover the excess part; (2) After the insurer makes compensation, there is a subrogation to the tort (3) If the insured obtains compensation from the infringer through litigation, the insurer may recover the insurance money that has been paid.
Insurance: Most states in the United States provide uninsured driver insurance by statute. About 20 states require uninsured driver coverage in full auto liability insurance policies; in other states, this coverage is not mandatory, but the insurer is required to provide it to any liability policyholder; only a few Several states do not require insurance for uninsured drivers.
The price of uninsured driver insurance varies widely by state, which is in part related to the share of uninsured drivers in each state.
3. The premise of insurance compensation for uninsured drivers is that the insured is “legally entitled to compensation”
Uninsured driver insurance compensation is presumed that the infringer is at fault, and the insured is legally entitled to compensation from the infringer. As generally agreed in the terms: “The company agrees to pay the insured… damages to which the insured is legally entitled to claim compensation from the owner or driver of the uninsured car.” As for “legally entitled to compensation”, the major Most courts have interpreted that the insured must be able to prove that the “uninsured driver” who caused the loss was at fault and to demonstrate the extent of the damage. When the insured proves the infringer’s actions, thereby entitlement to compensation, even if the tort A person’s defense may deny actual compensation, but such compensation remains covered by uninsured driver coverage.” The Kansas Supreme Court held that “legally entitled to compensation” also means: “When the insured sues the insurer directly, he must prove that the other driver has no liability insurance and that the driver is legally liable for the insured’s damage, and must prove the magnitude of such liability. When making a defense, in addition to the defenses of the policy clauses stipulated in the statutory law, the uninsured driver must also have the possible substantive defenses.” In the insurance contract compensation for the uninsured driver, the insurer has substantially replaced the uninsured driver’s position. and has the right to present any defense that an uninsured driver may assert.
Uninsured driver insurance provides first-party accident coverage and is limited third-party coverage. Although the insured pays for the insurance, it is not first-party insurance. Because first-party insurance such as medical insurance, collision insurance, theft insurance, etc. does not take into account the insured’s fault, this insurance may reduce the insurer’s compensation amount due to the insured’s fault.