It is just so sad that the well organized and well financed lawyer’s lobby does not consent the idea that no fault insurance plans are established in California to Rhode Island. According to the American Trial Lawyers Association, the ways of the lawyers are different from one another mainly because there is an argument as to whether or not allow people to recover from injuries without any certain amount to be given to them. The ones who are affected by these limitations are those victims who seriously try to settle claims without the help of the court and those who file a case to redeem damages. In fact, it was in Illinois wherein an amount of $100,000 was spent by the trial lawyers which resulted to an unsuccessful lobbying effort to kill the bill.
The no fault proposal was then proclaimed as a law wherein afterwards, the Illinois Trial Lawyers Association filed a suit. The law has been recently declared unlawful by the State Supreme Court because it doesn’t include the welfare of some groups of accident victims. The pending no fault bills do a terrible thing, based on the argument of the group of lawyers in Arkansas and California because this refrain people from bringing their problems in the court. A pending bill was attacked by the state Trial Lawyers Association in New York wherein they said that this bill does not allow civil rights such as to sue and also it prevents lawsuits from recovering damages for injuries.
The individuals who do not share the same perspective as the trial lawyers do are beginning to come about. This opposition team is preparing to introduce in Congress a Federal Automobile Insurance Reform Act which would protect the tort damage lawsuit right, a more extreme ‘no fault’ that supporters want to remove. What the trial lawyers’ bill has is that it owns their customized no fault provision. What the new Federal government corporation will do is to provide auto accident victims with the rightful compensation taken from the national gasoline tax. All of them would receive something whether they were guilty or innocent or whether they were insured or not.
The court would deduct the amount collected from the government although the right to sue and collect from the guilty driver would be preserved. These guilty drivers are no longer threatened by the no fault idea, they just want to retain the wrong legal system and they see the no fault as a justifiable social welfare principle and not as an insurance gimmick said the general manager of the Trial Lawyers Association and professor of the Boston University Law School. He says the trial lawyers believe their proposed federal corporation would be able to pay 90 per cent of all personal injury auto claims in full out of gasoline tax revenues.
Definitely, rates would go down for injury liability insurance because it has been subsidized by the government. There is a possibility that with the given subsidy by the government, most states would then require this. If that happens, the government would then have to spend over $3,000 or more per person. The payments given to the victims will compose 90 percent of all personal injury claims that includes hospital expenses, medical care and income loss. Victims will receive immediate payments except those who have committed a crime against the law, those who drive drunk and are under the influence of drugs and those who drive without license.
The Trial Lawyer’s bill provides a competition for private insurance companies because what it basically does is to give the government a right to sell policies. With this, the Government Company would then be allowed to sell personal injury liability insurance. Yet, motorists are still responsible for paying such coverage just like what they do now.