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Report No. 85

Schemes in U.S.A.- In many States in the U.S.A., statutory schemes have now been introduced for the compensation of victims of motor vehicles accidents. These schemes may be broadly classified into-(i) those where benefits are paid through a fund contained and administered by a Government agency, and (ii) those in which benefits are paid through private enterprise insurers. In some of the schemes, what has come to be known as "partial tort exemption" is incorporated1. Such an exemption bars claims in respect of pain and suffering for less serious injuries. In some of the other schemes more coverage is added without, however, changing the basic system of negligence law and liability insurance1.

1. Keeton & Keeton Case and Material in Torts, (1977), pp. 796, 800, 801.

By way of illustration, the position in a few States is briefly stated below.

(i) Illinois, the compulsory no-fault scheme, in effect since January 1, 1972,1 pays for medical, hospital and funeral expenses incurred within a year of the accident that caused the injury, to a maximum of only $ 2,000. The maximum income continuation benefit is $ 150 a week, with a 52 week limit. Provision is also made for the payment of an amount upto $ 12 a day for one year on account of loss of services where an injured person is not a wage earner.

1. P.A. 77-1430, amending Illinois Insurance Code of 1937.



Claims for Compensation under Chapter 8 of the Motor Vehicles Act, 1939 Back




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