The Negative Side Of The No Fault Scheme
Definitely, only a few motorists are satisfied with the automobile insurance system today. With this, the Congress has been receiving a lot of angry letters from the unhappy motorists. These letters mostly contain complaints about sudden cancellation of policies, increasing premiums, fear of cancellation of claims and declared underpayment of claims They also hate how the insurance unfairly treats its injured victims plus given the fact that an injured person has to wait for 1 year and 4 months till 5 years just to have his case processed by the court.
Basically, 17 percent is consumed by these insurance suits which bothers judges because it takes up their time. Major segments of the insurance industry are also affected because they have continued to use a system which didn’t generate enough revenues for the business. According to the Congress, passing laws during election season, when federal doesn’t have much expenditure, and when the public demands their queries and concerns to be answered definitely is the best time to do such job. With full page advertisements and on television commercials is the how insurance firms who are in favor of this new system want things to be done.
Errors will be minimized upon providing the right compensation for the injured victim , this new system will now be called no fault insurance. As for the vehicle that the victim was driving, the insurance company will take care of it, making the victim and the victim’s family receives the right compensation for the damages done. There should be a point person for the accident, as to which driver became careless. If that driver happens to be injured, then he gets nothing. The scenario would be instead of the victim receiving the money, this certain amount could be used for court trials, or also, this situation may lead to bargaining of insurance companies.
The no fault system would not touch any instances covering property damage such as colliding of two or more vehicles. Those disputes mentioned are definitely a lot easier and less costly to settle. The idea is to keep disputes out of court, but the legislation recognizes that some court cases would be inevitable. To be able to minimize disputes, draft legislation would give a list of issues that can’t be solved just by mere negotiation.
No fault scheme is not working for some people, which is why these people claim that more accidents and injuries happen and as a result, more deaths would take place. If the driver doesn’t mind whether he will be punished thru the cancellation of his policy for negligence, then he might not be careful in driving. Only the guilty will get what their money’s worth is under no fault insurance, according to the president of the American Trial Lawyers Association. What will happen is that the payment that the innocent should be getting would be given to the drunkard and the drag racer.
But this perspective, sad to say, is not agreed by the senator from Michigan. He said that what prompts people to be cautious in driving is when threats of loss of insurance or increased rates are set on the table. Much ahead on that list would be such things as fear of imprisonment, physical injury to us and our passengers, damage to our cars and sometimes a thing so simple as inconvenience. He also said that it is the court and the police who have the right to punish reckless drivers, and as for the insurance companies, it is their responsibility to compensate the victims whether guilty or innocent. This is like comparing to a person who catches pneumonia wherein in this instance, his insurance company would not in any way hesitate to pay his hospital bills.
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