Personal Financial Advice – Money Saving Tips
This imposition of vicarious liability was accompanied by a legislative intervention concerning automobile liability insurance. In the Automobile Insurance Act, adopted included in the Insurance Act in many provinces, certain features were imposed upon all automobile liability policies.
Particularly, insurers were required to agree to provide cover against liability imposed for legal reasons upon the insured named in the contract and each other person who with his consent personally drives an automobile owned by the insured for loss or damage, arising from the ownership, use or operation with the motor vehicle. How to spend more and save less – recommended reading
This provision addressed the difficulty posed by the most popular law requirement of privity of contract which had caused the Privy Council to deny the claim for indemnity through the daughter of your named insured owner within a liability policy. More generally, it ensured that, where the owner did have liability insurance, its proceeds were available as compensation for any third party injured or otherwise caused loss through the negligent operation from the insured vehicle. In other words, it made compensation more widely available.
A particularly significant statutory modification of common law contract rules was a provision giving an injured third party an immediate right of action up against the insurer of the baby – usually the automobile owner – primarily liable. Unlike the direct action provided with respect to non-automobile insurance, the right of action in automobile cases just isn’t prejudiced by the insureds violation with the law or policy terms, or through the invalidity of the policy arising, as an example, from a material non-disclosure. Although the insurer may, in certain circumstances, claim reimbursement from your insured, the clear purpose of this provision was, and is also, to make money available to injured victims. To acquire this benefit victims must have a tort claim from the insured, but any contractual impediments pertaining to the insured’s rights from the insurer don’t prevent recovery.