Being considered in state legislatures from California to Rhode Island are the no fault insurance plans which already are a law and are being opposed by a well organized and well financed lawyer’s lobby. The no fault proposals according to the American Trial Lawyers Association prohibit people from recovering from the injuries that they acquired which really do not have a certain monetary value. Also, he said that victims of those who settle claims by their own and those who file suit to redeem damages are affected by the said limitations. In Illinois, the aim was to kill the bill which is why the trial lawyers’ group spent $100,000 but they weren’t fortunate with this.
But after the no fault proposal was signed into law, the Illinois Trial Lawyers Association filed a suit. Other groups of accident victims have been disregarded by the law, which is why the State Supreme Court declared it unconstitutional. The group of lawyers in Arkansas and California said that people are controlled of their right to take their problems to the court because of the pending no fault bills. The state Trial Lawyers Association in New York showed its displeasure about the pending bill because it disallows people from suing and not only that, it prevents lawsuits from having the damages compensated.
The counter of trial lawyers is beginning to put their acts together. What they plan to do is to introduce in Congress a Federal Automobile Insurance Reform Act that would contain the tort damage lawsuit right, which in other words is the extreme version of ‘no fault’ that supporters want to get rid of. Also, the trial lawyers’ bill has its very own, no fault provision. What the new Federal government corporation will do is to provide auto accident victims with the rightful compensation taken from the national gasoline tax. It doesn’t matter if these victims have an insurance or not, or if they’re guilty or innocent.
The judgment against a guilty driver and his insurance company would not affect the way how the court will deduct from the amount taken from the government firm, though there would still be the right to sue and collect from the guilty driver. The general manager of the Trial Lawyers Association and professor of the Boston University Law School mentioned that these people who are proven guilty are no longer bothered by the no fault idea because they simple want to retained the wrong legal system. According to him, trial lawyers do believe that the proposed federal corporation has the ability to shoulder over 90 percent of all personal injury claims.
It is accepted that rates for injury liability insurance would definitely decrease because the government paid deductibles and that such facts have been cited. What most states would do now is to probably require such coverage. What might happen is that the government would have to shoulder around $3,000 or more per person. The amount to be given to the victims would be cover in full about 90 percent of all personal injury claims which already covers hospital costs, medical care and even income loss. Not everyone is subjected to benefit from immediate payments, because persons who hit the road while drunk and under the influence of drugs, unlicensed drivers and as well as drivers who have committed a crime against the law would not receive any.
The present collision, property damage liability and auto fire and theft insurance system are not touched by the Trial Lawyers’ bill, but it urges the government to sell such insurance to compete with private companies. Now, there will be a competition between the Government Company and against the private companies because both would be selling personal injury liability insurance. Now, motorists take care of such coverage, but in the future, they would still have to pay for their coverage.