Menu Search Account

LegiStorm

Get LegiStorm App Visit Product Demo Website
» Get LegiStorm App
» Get LegiStorm Pro Free Demo

No-Fault Motor Vehicle Insurance (CRS Report for Congress)

Premium   Purchase PDF for $24.95 (5 pages)
add to cart or subscribe for unlimited access
Release Date July 16, 1979
Report Number IB73022
Authors Kathleen Shea Swendiman, American Law Division
Source Agency Congressional Research Service
Summary:

A major issue has developed over the best mechanism for the equitable and efficient compensation of losses to victims of motor vehicle accidents. A Department of Transportation study shows that motor vehicle accidents in 1967 resulted in more than #10.5 billion in compensable economic loss. An estimated $6.5 billion of this loss was compensated, about one-half through the existing liability system. The study concludes that the existing liability system results in compensation that is unevenly and inefficiently distributed and that it should be replaced by a "no-fault" system. Such a no-fault system consists of compensation of an accident victim by his own insurance company and a substantial limitation on the victim's right to sue the at-fault party for damages.