Another reform has been the abolition in several provinces with the guest passenger rule. Under that rule a non-paying passenger in a private automobile could not recover in tort from the driver unless there is proof of gross negligence.
Clearly, the removal of this rule has increased the number of claimants who may now recover in tort. Each one of these developments improved the possibilities that an innocent victim of the automobile accident could be compensated at least to some extent. But there still needed to be a proof of fault and, in most cases, the defendant required liability insurance. To pursue further the compensation goal of tort law as it applied to automobile accidents, provinces instituted incentives to induce owners of automobiles to buy liability insurance.
These were the so-called Financial Responsibility Laws which required proof by any motorist responsible for an accident, that they could pay, by insurance or otherwise, any damages resulting. If proof had not been forthcoming, penalties followed. Fund from where payments were created to victims whose losses and injuries had been 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 those that, upon registering their vehicles, chose never to buy liability insurance.
This was not just a form of insurance for these people because, under threat of the loss of their driving privileges, these folks were required to reimburse the fund for any losses they caused.
Not pleased with financial responsibility laws as a way of encouraging the availability of insurance to pay judgments, all provinces have now resorted to regimes of compulsory automobile insurance. If you need more info, click to read more. Accordingly, this is a criminal offence for an uninsured motor vehicle to be operated on public highways. Registrants of automobiles are required to provide details of insurance when obtaining licenses or renewals of licenses for his or her vehicles and police officers routinely demand proof insurance when a motorist is stopped for reasons uknown.
Offenders are liable to pay heavy fines. Special arrangements are designed to provide cover high-risk applicants. This all is clearly made to protect victims (as opposed to insured defendants). It is, in short, a type of compensation plan.