Chapter 4 – Uninsured Motorist Coverage Model Narrative/Application
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List 10 examples in which Uninsured Motorist coverage does NOT apply.
Uninsured Motorist Coverage (does not apply)
- A vehicle where there exists proof of financial responsibility given in a manner provided by The Highway Traffic Act
- A vehicle owned by the Crown in right of Canada (i.e. RCMP vehicles)
- A vehicle that runs on rails (i.e. CP convertible truck)
- A farm tractor or other tractor not required to be registered under The Highway Traffic Act
- A self-propelled implement of husbandry (combine, swather, etc.)
- A mechanically propelled invalid chair
- A special mobile machine as defined in The Highway Traffic Act
- A vehicle taken without consent by a member of the household – The Highway Act specifies that in such use, the driver is deemed to be an agent of the owner
- Any breach of conditions – A breach of a condition does not constitute an uninsured motorist as a policy is still in effect and the innocent party would have right of recovery under Absolute Liability provisions.
- A licensed Manitoba driver unknowingly operating an uninsured vehicle in Manitoba – A Driver’s Policy would extend coverage in this circumstance, as long as the conditions for Driver’s Policy coverage are met.
Describe how motorists are impacted by hit-and-run accidents.
- Hit-and-run losses involve a vehicle that has been damaged by an unidentified third party.
- Insureds whose vehicles have been involved in a hit-and-run collision must report the incident to MPI
o And the local police authority.
- The procedure will vary depending on the location where the loss occurred.
- Insureds are responsible for paying the uninsured portion of their loss in hit-and-run claims.
- Howver, if they can identify the person who was responsible for causing damage,
o They may be able to recover their uninsured portions.
- For damage caused by stolen vehicles,
o Insureds may be reimbursed for their deductible if MPI can determine the thief’s identity,
o And the thief does not dispute fault for the collision by way of the Uninsured Motorist provisions outlined above.
You are driving to work in Flin Flon and you are hit by a third party who does not notice you while making a lane change. You have a basic Autopac policy. Prior to the accident Donny was working full time as a long distance truck driver.
a) As a result of the accident your vehicle suffers an estimated $15,000 in damage. The third party driver does not have insurance. Can you pursue legal action against the third party driver? Explain your answer.
b) It is uncovered that the third party driver involved in the accident had stolen the vehicle she was driving. Authorities arrive on the scene and arrest her, and she is also deemed 100% at fault for the accident. Does this incident qualify for Uninsured Motorist coverage under your basic Autopac policy? Explain why or why not?
c) Would Uninsured Motorist coverage apply the third party driver had stolen the vehicle she was driving from her roommate? Explain your answer.
a) Uninsured Motorist Coverage in Manitoba
- No, you could not sue the 3rd party for the damages to your vehicle.
- In Manitoba, the situation with respect to Uninsured Motorist coverage is somewhat different from most other provinces.
- Here, physical damage coverage to one’s own automobile is a mandatory coverage.
- Furthermore, all residents are protected under the Personal Injury Protection Plan (PIPP)
o And no legal suits are permitted.
- Consequently, no matter how an automobile-related claim originates,
o Basic coverages are ultimately paid by MPI
- In effect, it carries out the functions of both an unsatisfied judgment fund
o And the Uninsured Motorist coverage found in the policies of other jurisdictions
b) Uninsured Motorists
- Yes, Uninsured Motorist coverage does apply.
- Uninsured Motorist coverage applies when an at-fault driver (fully
o Or partially) of an uninsured motor vehicle causes damage to property in an accident in Manitoba.
- The innocent 3rd party who suffers the property damage may make a claim against the Corporation for any uninsured portion of the loss.
- An uninsured motorist includes a vehicle that is required to be registered
o But is not registered.
- This can include stolen vehicles where the identity of the thief is known.
c) Uninsured Motorists
- No, Uninsured Motorist coverage does not apply.
- An uninsured motorist does not include a vehicle taken without consent by a member of the household.
- The Highway Traffic Act specifies that in such use, the driver is deemed to be an agent of the owner.
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