Another reform may be the abolition in several provinces from the guest passenger rule. Under that rule a non-paying passenger in the private automobile cannot recover in tort up against the driver unless there was proof of gross negligence.
Clearly, removing this rule has grown 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 could be compensated a minimum of to some extent. But there still must be a proof of fault and, generally, the defendant required liability insurance. To pursue further the compensation purpose of tort law because it applied to motor vehicle collisions, provinces instituted incentives to induce pet 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 she could pay, by insurance or otherwise, any damages resulting. If proof had not been forthcoming, penalties followed. Fund from which payments were created to victims whose losses and injuries ended up caused by uninsured or unidentified motorists. This basic concept was copied by the rest of the provinces. The funds were made up of contributions by people who, upon registering their vehicles, chose never to buy liability insurance.
This was not a form of insurance for they because, threatened by of the lack of their driving privileges, they were required to reimburse the fund for just about any losses they caused.
Not content with financial responsibility laws as a means of encouraging the provision of insurance to cover judgments, all provinces have now resorted to regimes of compulsory automobile liability insurance. If you need more info, additional hints. Accordingly, this is a criminal offence with an uninsured automobile to be operated on public highways. Registrants of cars are required to provide details of insurance when obtaining licenses or renewals of licenses for vehicles and law enforcement officers routinely demand proof insurance each time a motorist is stopped for whatever reason.
Offenders are liable to pay heavy fines. Special arrangements are designed to provide pay for high-risk applicants. All of this is clearly made to protect victims (instead of insured defendants). It really is, in short, a form of compensation plan.