Another reform may be the abolition in a number of provinces of the guest passenger rule.  Under that rule a non-paying passenger in the private automobile cannot recover in tort against the driver unless there was clearly proof of gross negligence.

Clearly, the removal of this rule has increased the number of claimants who may now recover in tort. Each 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, generally, the defendant required liability insurance.  To pursue further the compensation purpose 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 motorist accountable for an accident, that they could pay, by insurance or else, any damages resulting. If proof was not forthcoming, penalties followed. Fund from which payments were created to victims whose losses and injuries ended up caused by uninsured or unidentified motorists.  This basic concept was copied by the rest of the provinces. The funds were created up of contributions by those that, upon registering their vehicles, chose never to buy insurance.

This was not a form of insurance for these people because, threatened by of the lack of their driving privileges, these folks were required to reimburse the fund for any losses they caused.

Consumer tips on car insurance in TexasNot content with financial responsibility laws as a means of encouraging the supply of insurance to cover judgments, all provinces have now resorted to regimes of compulsory automobile liability insurance.  If you need more info, here are the findings. Accordingly, this is a criminal offence with an uninsured automobile to be operated on public highways. Registrants of motor vehicles are required to provide details of insurance when obtaining licenses or renewals of licenses for their vehicles and cops routinely demand proof insurance when a motorist is stopped for reasons unknown.

Offenders are liable to pay heavy fines.  Special arrangements are designed to provide pay for high-risk applicants. All of this is clearly designed to protect victims (instead of insured defendants). It really is, in short, a kind of compensation plan.