Another reform continues to be the abolition in several provinces from the guest passenger rule. Under that rule a non-paying passenger in the private automobile couldn’t recover in tort from the driver unless there is proof of gross negligence.
Clearly, the removing of this rule has risen the number of claimants who may now recover in tort. Each one of these developments improved the possibilities that an innocent victim of an automobile accident would be compensated no less than to some extent. But there still had to be a proof of fault and, in most cases, the defendant required liability insurance. To pursue further the compensation objective of tort law since it applied to car accidents, provinces instituted incentives to induce pet owners of automobiles to buy liability insurance.
These were the so-called Financial Responsibility Laws which required proof by motorist accountable for an accident, that she could pay, by insurance or otherwise, any damages resulting. If proof had not been forthcoming, penalties followed. Fund from where payments were made to victims whose losses and injuries had been caused by uninsured or unidentified motorists. This basic concept was copied by the many other provinces. The funds were created up of contributions by those that, upon registering their vehicles, chose not to buy insurance.
This was not a form of insurance for such people because, under threat of the loss in their driving privileges, they were required to reimburse the fund for almost any losses they caused.
Not pleased with financial responsibility laws as a method of encouraging the supply of insurance to pay judgments, all provinces have recently resorted to regimes of compulsory automobile insurance. If you need more info, find a replacement. Accordingly, this is a criminal offence to have an uninsured car to be operated on public highways. Registrants of motor vehicles are required to provide specifics of insurance when obtaining licenses or renewals of licenses for his or her vehicles and police officers routinely demand evidence of insurance whenever a motorist is stopped for reasons unknown.
Offenders are likely to pay heavy fines. Special arrangements are designed to provide cover for high-risk applicants. This all is clearly built to protect victims (as opposed to insured defendants). It’s, in short, a type of compensation plan.