Another reform continues to be the abolition in many provinces of the guest passenger rule. Under that rule a non-paying passenger in a private automobile couldn’t recover in tort from the driver unless there is proof of gross negligence.
Clearly, removing this rule has increased the number of claimants who may now recover in tort. Each of these developments improved the possibilities that an innocent victim of the automobile accident would be compensated at least to some extent. But there still needed to be a proof of fault and, generally, the defendant needed liability insurance. To pursue further the compensation purpose of tort law because it applied to automobile accidents, provinces instituted incentives to induce owners of motor vehicles to buy liability insurance.
These were the so-called Financial Responsibility Laws which required proof by motorist accountable for an accident, that they could pay, by insurance or otherwise not, any damages resulting. If proof wasn’t forthcoming, penalties followed. Fund from where payments were made to victims whose losses and injuries have been caused by uninsured or unidentified motorists. This basic concept was copied by all of the other provinces. The funds were created up of contributions by those who, upon registering their vehicles, chose not to buy liability insurance.
This was not just a form of insurance for they because, threatened by of the loss of their driving privileges, these folks were required to reimburse the fund for almost any losses they caused.
Not content with financial responsibility laws as a way of encouraging the availability of insurance to pay judgments, all provinces have finally resorted to regimes of compulsory automobile insurance. If you need more info, read more. Accordingly, this is a criminal offence with an uninsured automobile to be operated on public highways. Registrants of cars are required to provide information on insurance when obtaining licenses or renewals of licenses for vehicles and law enforcement officers routinely demand proof of insurance when a motorist is stopped for reasons uknown.
Offenders are liable to pay heavy fines. Special arrangements are made to provide pay for high-risk applicants. This all is clearly designed to protect victims (as opposed to insured defendants). It is, in short, a kind of compensation plan.