- Learn about the Insurance Motor Vehicle Act Regulations.yellow car, a honda japanese sport car model image by alma_sacra from Fotolia.com
The Insurance Motor Vehicle Act was promulgated in British Columbia in Canada with the intention of laying out regulations on auto insurance. This regulation vests total authority of all aspects concerning insurance of vehicles in the Minister of Transportation and Communications. The Insurance Motor Vehicle Act is a comprehensive set of guidelines on all issues relating to insurance of vehicles and runs into a few hundred paragraphs containing numerous regulations. - The Insurance Motor Vehicle Act makes vehicle insurance compulsory. The act covers issues relating to premiums, insurance certificates, types of insurance coverage required for various vehicles and penalties for under-insurance. These aspects of insurance are delegated to the Lieutenant Governor in Council. This office lays down regulations and enforces the Insurance Corporation Act. The office has the power to hand out penalties and to adjudicate issues arising in case of disputes and accidents.
- One of the primary roles of an insurance act relates to disputes and settlements arising out of accidents. The severity of an accident, defined as an unintentional mishap that causes bodily injury, is decided based on the extent of physical injury it causes as well as the loss of income such an event causes. Under the act, compensation is awarded based on calculations of the income loss suffered. The injured person's gross income for the year before the injury minus taxes owed to the federal government is the basis of settlement. The owner or operator of the vehicle who caused the accident must pay these damages. Other persons whose actions may have contributed to the accident are also considered defendants and become part of the compensatory process. Other considerations include the costs that arose out of the damage the vehicle suffered.
- The insured, or the person who has insured his or her vehicle, is entitled to full and unassailable rights against damage. This means that the insurance company must pay all covered damages under the terms of the insurance policy that the insured is entitled to. The insurance company must act in good faith in paying these damages to the insured and must pay claims in a timely and efficient manner.
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