Another reform may be the abolition in many provinces of the guest passenger rule. Under that rule a non-paying passenger in the private automobile couldn’t recover in tort against the driver unless there was clearly proof of gross negligence.
Clearly, the removing of this rule has increased the number of claimants who may now recover in tort. Each of these developments improved the probabilities that an innocent victim of an automobile accident would be compensated no less than to some extent. But there still had to be a proof of fault and, generally, the defendant needed liability insurance. To pursue further the compensation purpose of tort law since it applied to motor vehicle collisions, provinces instituted incentives to induce owners of motor vehicles to buy insurance.
These were the so-called Financial Responsibility Laws which required proof by any motorist accountable for an accident, 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 had 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 people who, upon registering their vehicles, chose never to buy insurance.
This was not a form of insurance for such people because, threatened by of the loss in their driving privileges, these were required to reimburse the fund for any losses they caused.
Not quite happy with financial responsibility laws as a way of encouraging the supply of insurance to pay judgments, all provinces have now resorted to regimes of compulsory automobile liability insurance. If you need more info, do you agree. Accordingly, this is a criminal offence for an uninsured motor vehicle to be operated on public highways. Registrants of motor vehicles are required to provide specifics of insurance when obtaining licenses or renewals of licenses for their vehicles and police officers routinely demand evidence of insurance each time a motorist is stopped for whatever reason.
Offenders are likely to pay heavy fines. Special arrangements are made to provide cover high-risk applicants. All of this is clearly made to protect victims (instead of insured defendants). It really is, in short, a kind of compensation plan.