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The development and policy implications of automobile insurance in British Columbia Harrison, Douglas Knox 1972

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T.HE DEVELOPMENT AND POLICY IMPLICATIONS OF AUTOMOBILE INSURANCE IN BRITISH COLUMBIA By DOUGLAS KNOX HARRISON B. Com., U.B.C. 19 6 7 LL.B., U.B.C. 1970 A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION .in the F a c u l t y o.f COMMERCE AND BUSINESS ADMINISTRATION We accept t h i s t h e s i s as conforming to the r e q u i r e d s t a n d a r d THE UNIVERSITY OF BRITISH COLUMBIA A p r i l , 1972 In p re sen t ing t h i s t h e s i s in p a r t i a l f u l f i l m e n t o f the requirements f o r an advanced degree at the U n i v e r s i t y of B r i t i s h Columbia , I agree that the L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e fo r reference and s tudy. I f u r t h e r agree tha t permiss ion for e x t e n s i v e copying o f t h i s t h e s i s for s c h o l a r l y purposes may be granted by the Head of my Department or by h i s r e p r e s e n t a t i v e s . It i s understood that copying o r p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l ga in s h a l l not be a l lowed wi thout my w r i t t e n p e r m i s s i o n . aep^rtwefit o f Com c~e- cutt ei in-tss: f/dn.in \ s 7 ^ oJTJ The U n i v e r s i t y o f B r i t i s h Columbia Vancouver 8, Canada A b s t r a c t i The purpose o f the t h e s i s i s to review the development of the compensation system f o r t r a f f i c v i c t i m s i n B r i t i s h Columbia and to determined what changes are r e q u i r e d i n o r d e r to improve the e q u i t y , e f f i c i e n c y , and e f f e c t i v e n e s s of the system. The study examines t h i s q u e s t i o n from a broad p e r s -p e c t i v e because of the i n t e r - r e l a t i o n s h i p s among motor v e h i c l e t r a n s p o r t a t i o n , t r a f f i c s a f e t y , and the compensation system. The methods of i n v e s t i g a t i o n were t w o f o l d . The f i r s t step was to read a l l the p e r t i n e n t l i t e r a t u r e on the s u b j e c t which c o u l d be found i n Vancouver. The second step was t o communicate by telephone, by m a i l , or i n person w i t h i n d i v i d u a l s who possessed s p e c i a l knowledge w i t h r e s p e c t t o one or more aspects of the s u b j e c t matter. The l a t t e r r e s e a r c h was i n v a l u -able because i t updated the i n f o r m a t i o n a v a i l a b l e i n the l i t e r a t u r e , r e v e a l e d the p r a c t i c a l r a m i f i c a t i o n s of d i f f e r e n t concepts, and p r o v i d e d B r i t i s h Columbia viewpoints to a world wide problem. The c o n c l u s i o n s of the t h e s i s are based to a l a r g e e x t e n t on v a l u e judgments because of the p a u c i t y of q u a n t i f i a b l e data and the absence of an a c t u a r i a l a n a l y s i s . In g e n e r a l the w r i t e r f e e l s t h a t more s t r i n g e n t procedures must be employed i n the i s s uance and renewal of l i c e n c e s , and • the p u b l i c must accept automatic suspensions of l i c e n c e s f o r repeated t r a f f i c v i o l a t i o n s or a c c i d e n t involvement. S i m u l t a -neously, improvement i n v e h i c l e and roadway d e s i g n , and emergency treatment of c r a s h v i c t i m s must be undertaken. The w r i t e r concludes t h a t a n o - f a u l t , d i r e c t w r i t e r , and p r i v a t e l y operated automobile compensation system i s f e a s i b l e a t t h i s time, and w i l l p r o v i d e a more e q u i t a b l e , e f f e c t i v e , and e f f i c i e n t system of a l l o c a t i n g premium d o l l a r s t o a broader range of t r a f f i c v i c t i m s . TABLE OF CONTENTS INTRODUCTION THE EVOLUTION OF COMPENSATION FOR MOTOR VEHICLE TRAFFIC VICTIMS IN BRITISH COLUMBIA . AUTOMOBILE ACCIDENT COMPENSATION IN OTHER JURISDICTIONS THE WOOTTON COMMISSION REPORT AND THE CURRENT BRITISH LAW THE PRACTICAL RAMIFICATIONS OF THE NO-D7\nT m T P P T C T 7\rn-rr\Ta TRAFFIC SAFETY - WITH PARTICULAR REFER-ENCE TO DETERRENTS TO MOTOR VEHICLE ACCIDENTS COMPULSORY INSURANCE, THE FAULT SYSTEM, THE COST OF DIFFERENT COMPENSATION SCHEMES, AND PUBLIC ADMINISTRATION OF MOTOR VEHICLE INSURANCE POLICY IMPLICATIONS FOOTNOTES BIBLIOGRAPHY i v L i s t of Schedules Page Schedule I - How Canadian Auto Insurance Plans Compare 55 Schedule I I - B.C. Royal Commission on Automobile Insurance - Death and D i s a b i l i t y P r o p o s a l s 6 8 Schedule I I I - C u r r e n t Death B e n e f i t P r o v i s i o n s i n B.C 74 Schedule IV - B.C. Royal Commission on Automobile Insurance Proposed Rates and Demerit P o i n t System 80 Schedule V - Current Demerit P o i n t System f o r L i c e n c e Suspensions i n B.C 84 Schedule VI - A c c i d e n t B e n e f i t s Premium P r i v a t e Passenger Business . . . . 99 Schedule VII - D i f f e r e n c e s between the Board Pro-p o s a l s and CUA Rate I n d i c a t i o n s . . 100 Schedule V I I I - The Independent Insurance Conference Proposed Rate ' 103 Schedule IX - Frequency of B o d i l y I n j u r y Claims . 108 Schedule X - R e l a t i o n s h i p of I n j u r i e s and Deaths t o Cars Insured i n B r i t i s h Columbia 1966-1970 112 Schedule XI - T r a f f i c V i c t i m s Indemnity Fund E x p e r i e n c e , 1969-71. 113 Schedule XII - R a t i o of Claims to C a s u a l t i e s i n B.C. 121 Schedule X I I I - Report of M o t o r - V e h i c l e A c c i d e n t . 125 Schedule XIV - Time D i s t r i b u t i o n of F a t a l i t i e s and I n j u r i e s i n B.C 135 Schedule XV - B r i t i s h Columbia T r a f f i c A c c i d e n t S t a t i s t i c s 1960-1971 153 V L i s t of Schedules - Continued Page Schedule XVI - Cost o f Claimant's Lawyer Fees . . . . 168 Schedule XVII - Breakdown of the Premium D o l l a r . . . . 169 \ v i ACKNOWLEDGMENTS To a l l those i n d i v i d u a l s who c o n t r i b u t e d i n f o r m a t i o n , o p i n i o n s , and a d v i c e , and e s p e c i a l thanks to P r o f e s s o r s , Dr. P.A. L u s z t i g and Dr. G.M. D i c k i n s o n , of the F a c u l t y of Commerce and Business A d m i n i s t r a t i o n at the U n i v e r s i t y of B r i t i s h Columbia, the former f o r h i s cogent a d v i c e i n r e s p e c t o f i n f o r m a t i o n a l s o u r c e s , and the l a t t e r f o r h i s sugge s t i o n s and c r i t i c i s m s i n r e s p e c t of t h i s t h e s i s . CHAPTER I INTRODUCTION In 189 6 the automobile was such a n o v e l t y t h a t i t was d i s p l a y e d as an o d d i t y i n the Barnum and B a i l e y c i r c u s i n the U n i t e d States.''" E l e v e n years l a t e r only one hundred and 2 s e v e n t y - f i v e motor v e h i c l e s were r e g i s t e r e d i n B r i t i s h Columbia. Yet by 19 70 t h e r e were over one m i l l i o n motor v e h i c l e r e g i s t r -3 a t i o n s , o r from a d i f f e r e n t p e r s p e c t i v e , over twenty-eight 4 v e h i c l e s per road and s t r e e t mileage i n t h i s p r o v i n c e . In the p e r i o d between 19 0 7 and 19 70 the motor v e h i c l e became an overwhelming f o r c e i n the f o r m a t i o n o f n e a r l y everyone's mode of l i f e , v o c a t i o n a l and r e c r e a t i o n a l , and u n f o r t u n a t e l y a way of d i s a b i l i t y and death f o r too many. As the l a s t q u a r t e r of the t w e n t i e t h century approaches, more than a few academics, s c i e n t i s t s , p o l i t i c i a n s , and con-cerned c i t i z e n s are a s k i n g whether the automobile has become o b s o l e t e as a means of t r a n s p o r t a t i o n because o f environmental problems: v e h i c l e exhaust p o l l u t i o n , d e s t r u c t i o n o f neighbourhoods i n o r d e r to c o n s t r u c t freeways, r u i n a t i o n of the a e s t h e t i c beauty of c i t i e s and landscapes, and the waste of unwanted c a r s . More i m p o r t a n t l y there must be some q u e s t i o n as to the v a l i d i t y of motor v e h i c l e t r a n s p o r t a t i o n i n l i g h t of the tremendous c o s t s i n v o l v e d i n highway c o n s t r u c t i o n , the i d l e time spent by d r i v e r s and passengers i n t r a f f i c c o n g e s t i o n s , and the t e r r i b l e -2-s l a u g h t e r of d r i v e r s and passengers on our roadways. However i n 19 72, r e g a r d l e s s o f one's v i e w p o i n t , i n r e s p e c t o f the automobile and p o s s i b l e a l t e r n a t i v e forms of t r a n s p o r t a t i o n one must c o n f r o n t r e a l i t y , which i n the p r e s e n t c o n t e x t means t h a t the motor v e h i c l e w i l l remain as the b a s i c method of conveyance i n the f o r e s e e a b l e f u t u r e , eg. the next t w e n t y - f i v e y e a r s , and pro b a b l y much lon g e r i n the B r i t i s h Columbia case because of the s m a l l p o p u l a t i o n c e n t r e s , (aside from Vancouver), the l a r g e l a n d area, and the l a c k of any p r a c t i c a l i n i t i a t i v e on the p a r t o f e i t h e r the c i v i c or p r o v i n c i a l governments. Consequently g r e a t e r highway c a s u a l t i e s can be expected, i n s p i t e of improvements in' road, t r a f f i c c o n t r o l s i g n s , and car designs,because the p r o v i n c e ' s motor v e h i c l e r e g i s t r a t i o n s and the r e s u l t a n t t r a f f i c d e n s i t y w i l l c o n tinue t o r i s e . T h e r e f o r e the student of motor v e h i c l e a c c i d e n t s i s i n the unen v i a b l e p o s i t i o n o f attempting t o a s c e r t a i n which p a l l i a t i v e w i l l b e s t perform the twin tasks of r e h a b i l i t a t i n g the d i s a b l e d and m a i n t a i n i n g the economic s t a t u s of the automobile a c c i d e n t v i c t i m and/or h i s dependents. The approach the w r i t e r i n t e n d s t o f o l l o w i n p r e s e n t i n g t h i s t h e s i s i s t o p r o v i d e the reader w i t h the p r e r e q u i s i t e background t o the c u r r e n t B r i t i s h Columbia l e g i s l a t i o n , then to analyze some of the f a c e t s of the law which have become e v i d e n t d u r i n g i t s two years of o p e r a t i o n , and l a s t l y to comment on r e c e n t , and some not so r e c e n t , suggestions as to -3-p o s s i b l e improvements i n the t r a f f i c a c c i d e n t r e p a r a t i o n system and to i n d i c a t e what form automobile compensation may take i n the f u t u r e . I t should be noted a t t h i s time t h a t the t h e s i s w i l l ,be p r i m a r i l y concerned w i t h compensation i n r e s p e c t of b o d i l y i n j u r y , and o n l y the s i g n i f i c a n t aspects of the law and d i f f e r e n t p r o p o s a l s p e r t a i n i n g to p r o p e r t y damage w i l l be acknowledged. The f i r s t few chapters w i l l d e a l w i t h the development of motor v e h i c l e compensation i n B r i t i s h Columbia and i n o t h e r j u r i s d i c t i o n s . H o p e f u l l y t h i s resume w i l l enable the reader to understand why some of the p r e s e n t d i f f i c u l t i e s e x i s t , and what p r a c t i c a l a l t e r n a t i v e s are a v a i l a b l e . A l s o the B r i t i s h Columbia Royal Commission on Automobile Insurance ( h e r e a f t e r r e f e r r e d t o as the Wootton Commission) w i l l be reviewed and the f a t e of i t s p r o p o s a l s as i n d i c a t e d by the 1969-1972 l e g i s l a t i o n w i l l be d i s c u s s e d . The next two chapters w i l l e n q u i r e i n t o such matters as l o s s r a t i o s , c o u r t d e l a y s , and a broader e l e g i b i l i t y base f o r autombile a c c i d e n t compensation which were prime t a r g e t s of the Wootton Report, and to decide to what extent the amendments to the l e g i s l a t i o n have a m e l i o r a t e d these d e f i c i e n c i e s . A l s o a t t e n t i o n w i l l be f o c u s s e d on the c a u s a t i o n and d e t e r r e n c e of a c c i d e n t s w i t h s p e c i a l emphasis on how the n o - f a u l t p r o v i s i o n s may have a f f e c t e d the d e t e r r e n c e , i n r e s p e c t of t r a f f i c a c c i d e n t s , which some people a s s o c i a t e w i t h the pure t o r t system. -4-The f i n a l chapters w i l l broach such t o p i c s as the d e s i r -a b i l i t y of compulsory i n s u r a n c e , the j u s t i c e and m o r a l i t y of the f a u l t system, the c o s t o f automobile i n s u r a n c e , and the e f f i c a c y of governmental involvement i n automobile i n -surance. The w r i t e r w i l l a l s o suggest t h a t c e r t a i n p r o v i s i o n s of the p r e s e n t n o - f a u l t law should be amended. L a s t l y the w r i t e r w i l l attempt t o p r e d i c t the type of automobile i n j u r y and death compensation scheme which may be o p e r a t i v e i n B r i t i s h Columbia i n the f u t u r e . B efore commencing w i t h the body of the t h e s i s the f o l l o w i n g t a b l e may convince the reader of the magnitude of the motor v e h i c l e a c c i d e n t c r i s i s and why a s y s t e m a t i c , e q u i t a b l e , e f f i c i e n t , and e f f e c t i v e automobile a c c i d e n t compensation p l a n i s r e q u i r e d i n B r i t i s h Columbia. B r i t i s h Columbia Motor V e h i c l e Data 1950 1960 1970 Motor V e h i c l e R e g i s t r a t i o n s 270,312 564,351 1,024,738 A c c i d e n t s 18,029 26,091 60,778 I n j u r i e s 5,720 11,311 22,568 Deaths 188 294 559 Sources: 1) Dominion Bureau of S t a t i s t i c s a) 53-206 Motor V e h i c l e A c c i d e n t s - 1960 & 1970 b) 53-203 The Motor V e h i c l e - 1950 2) 19 70 Annual Report o f the Superintendent of Motor V e h i c l e s , Queen's P r i n t e r . CHAPTER II THE EVOLUTION OF COMPENSATION FOR MOTOR VEHICLE . TRAFFIC VICTIMS IN BRITISH COLUMBIA I n t r o d u c t i o n Compensation f o r t r a f f i c v i t i m s i n B r i t i s h Columbia i s d e r i v e d from two g e n e r a l s o u r c e s . The major source of r e p a r a t i o n s i s a t o r t a c t i o n which enables an i n j u r e d p a r t y ( p l a i n -t i f f or claimant) to sue a blameworthy p a r t y (defendant) i n Court, and i f s u c c e s s f u l , t o r e c o v e r damages (compensation). A d e s c r i p t i o n of the development of t h i s system i s the f o c a l p o i n t of t h i s c h a p ter. The reader should be aware of the f a c t t h a t i n a d d i t i o n to compensation from a l e g a l s u i t or s e t t l e m e n t ( p a r t i e s agree as t o l i a b i l i t y and damages b e f o r e t r i a l ) the t r a f f i c v i c t i m may a l s o r e c e i v e r e p a r a t i o n s from o t h e r s o u r c e s . These would i n c l u d e the v i c t i m ' s own i n s u r a n c e coverages: c o l l i s i o n and comprehensive, me d i c a l and h o s p i t a l and a c c i d e n t and l i f e , and m i s c e l l a n e o u s sources such as s i c k leave pay, Workmen's Compensation, Canada Pension P l a n , and the T r a f f i c V i c t i m s Indemnity Fund. Before commencing w i t h a d e s c r i p t i o n of the t o r t a c t i o n system the reader should be c o g n i z a n t of the extent o f compensation which was r e c e i v e d by automobile a c c i d e n t v i c t i m s -5--6-under a pure t o r t scheme. In order to analyze the adequacy of r e p a r a t i o n s f o r t r a f f i c v i c t i m s some c r i t e r i o n must be employed t o measure the l o s s e s s u f f e r e d by those i n d i v i d u a l s . The y a r d s t i c k which was used by the Wootton Commission was economic ( d o l l a r ) l o s s because of the d i f f i c u l t y i n measuring p h y s i c l o s s e s , eg. p a i n and suffering.''' Economic l o s s was d e f i n e d to encompass p r o p e r t y damage, m e d i c a l , h o s p i t a l , and other out of pocket expenses, and income l o s s r e s u l t i n g from a t r a f f i c a c c i d e n t . The d e t e r m i n a t i o n of income l o s s i s not a simple tas k . As p o i n t e d out by the Commission i t e n t a i l e d p r e d i c t i o n s per-t a i n i n g to f u t u r e o c c u p a t i o n a l and income l e v e l s , r a t e of pay, employment s t a t u s , maintenance c o s t s , working l i f e , and the s e l e c t i o n of an a p p r o p r i a t e i n t e r e s t r a t e to d i s c o u n t f u t u r e 2 incomes. The w r i t e r does not i n t e n d to d i s c u s s a l l of the f o r e -mentioned f a c t o r s , but c e r t a i n s i g n i f i c a n t p o i n t s deserve 3 a t t e n t i o n . The Commission employes an i n t e r e s t r a t e of 7.5 p e r c e n t to d i s c o u n t f u t u r e incomes and t h i s seems q u i t e a p p r o p r i a t e i n l i g h t of p r e s e n t i n t e r e s t r a t e s and what may be r e asonably a n t i c i p a t e d i n the f u t u r e . Secondly the d i v i s i o n of the v a l u a t i o n of the s e r v i c e s of housewives i n t o two groups, eg. one f o r those housewives who are c a r i n g f o r c h i l d r e n under 12 y e a r s , and another f o r those who do not have any r e s p o n s i b i l i t y f o r c h i l d r e n i n t h a t age group, i s a r e a l i s t i c approach. S u r e l y c a r i n g f o r young c h i l d r e n i s the most important and time consuming a c t i v i t y o f a housewife. T h i r d l y the assumption t h a t t h e r e would be no improvement i n the o c c u p a t i o n a l or e d u c a t i o n a l l e v e l s of t r a f f i c v i c t i m s i s o b v i o u s l y going to c o n t r i b u t e t o a lower economic l o s s base than occurs i n the r e a l w orld. But p r a c t i c a l c o n s t r a i n t s , problems of est i m -a t i o n , p r e c l u d e any other approach. L a s t l y the use of a 2 per cent f i g u r e i n r e s p e c t of annual wage i n c r e a s e s i s extremely c o n s e r v a t i v e when the c u r r e n t and expected r a t e s of wages are c o n s i d e r e d . Wage i n c r e a s e s take account o f the r a t e of i n f l a t i o n , job promotions, and the g e n e r a l i n c r e a s e s gained by economic growth. In many cases any one of these f a c t o r s by i t s e l f would be conducive to a 2 pe r c e n t annual wage i n c r e a s e . Although t h i s e s t i m a t e i s q u i t e low, i n the w r i t e r ' s o p i n i o n i t i s not a s e r i o u s flaw i n the e s t i m a t i o n of the economic l o s s s u f f e r e d by t r a f f i c v i c t i m s . T h i s c o n c l u s i o n i s based on the f a c t t h a t f u t u r e l e v e l s o f income by age w i t h a g i v e n e d u c a t i o n l e v e l were es t i m a t e d from Dominion Bureau of S t a t i s t i c s data. Consequently some of the wage i n c r e a s e s would be c o n s i d e r e d i n these e s t i m a t e s s i n c e the groupings r e f l e c t p a s t s a l a r y l e v e l s which were a t t a i n e d by means of s a l a r y i n c r e a s e s as the i n d i v i d u a l grew o l d e r . -8-T h e r e f o r e the w r i t e r t h i n k s t h a t the Commissioners c o n s i d e r e d a l l of the important p o i n t s i n r e s p e c t of income l o s s and i n g e n e r a l t h e i r assumptions i n r e s p e c t of p a r t i c u l a r a spects of the e s t i m a t i o n were v a l i d from a p r a c t i c a l view-p o i n t , eg. v i r t u a l l y i m p o s s i b l e to gauge o c c u p a t i o n a l or e d u c a t i o n a l advancements. 4 At t h i s p o i n t l e t us review the r e s u l t s of the survey. The study r e v e a l e d t h a t t r a f f i c v i c t i m s i n f a t a l i t y , s e r i o u s i n j u r y , and minor i n j u r y cases recovered (from a l l sources) o n l y 20 p e r c e n t , 44 p e r c e n t , and 85 p e r c e n t of t h e i r economic l o s s e s , r e s p e c t i v e l y . Minor i n j u r y was d e f i n e d as cases i n which medical expenses were l e s s than $500, the v i c t i m was o f f work f o r fewer than t h r e e weeks, and t h e r e was no permanent p h y s i c a l impairment a f f e c t i n g the v i c t i m ' s employment. F u r t h e r -more the t o r t a c t i o n ( t o r t s u i t s , t o r t s e t t l e m e n t s and the T r a f f i c V i c t i m s Indemnity Fund payments which are based on a r i g h t of t o r t a c t i o n ) accounted f o r o n l y 5 p e r c e n t and 25 p e r c e n t of economic l o s s i n f a t a l i t y and s e r i o u s i n j u r y cases, r e s p e c t i v e l y . These low r e c o v e r i e s are v e r y s i g n i f i c a n t because the t o r t a c t i o n i s supposedly the main source of compensation. Consequently i t i s e v i d e n t t h a t t r a f f i c v i c t i m s i n B r i t i s h Columbia who were i n v o l v e d i n s e r i o u s i n j u r y or f a t a l i t y t r a f f i c a c c i d e n t cases were not r e c e i v i n g s a t i s f a c t o r y compens-a t i o n i n the p e r i o d immediately p r i o r t o 1970. In t h a t year -9-c e r t a i n amendments became o p e r a t i v e p r o v i s i o n s and t h e i r impact w i l l be ch a p t e r s . Law of T o r t s L e t us now focus our a t t e n t i o n on the law of t o r t s which i s supposed t o be the backbone of automobile a c c i d e n t r e p a r a t i o n s . The t o r t or wrong w i t h which we are most concerned i s t h a t of n e g l i g e n c e . The concept of n e g l i g e n c e i s a v e n e r a b l e d o c t r i n e which e x i s t e d as e a r l y as the f i f t e e n t h c e ntury as i l l u s t r a t e d by the Case of Thorns i n which Baron Anderson s a i d , "though a man doth a l a w f u l t h i n g , y e t i f any damage do thereby b e f a l l another, he s h a l l answer f o r i t , i f he c o u l d have avoided i t . The key to t h i s passage i s t h a t the a c t i v i t y i s " l a w f u l " and hence not s u b j e c t to c r i m i n a l s a n c t i o n s , y e t t h e r e i s an element of f a u l t , which even though u n i n t e n t i o n a l , causes damage or i n j u r y . Such judgments i n d i f f e r e n t cases are the b a s i s of the common law, and p r o v i d e judges w i t h a " r a t i o " or p r i n c i p l e and the d e t a i l s o f these reviewed i n the coming -10-which may serve as a guide to f u t u r e d e c i s i o n s . The r e a s o n i n g i n the forementioned case i s t h a t i n a s i t u a t i o n i n which one p a r t y has e x e r c i s e d reasonable care and the second p a r t y has been somewhat c a r e l e s s then i t would be l o g i c a l to ask the blameworthy p a r t y to bear the l o s s . O b v i o u s l y , m o r a l i t y p l a y e d an important r o l e i n t h i s d e c i s i o n , although today the three p r o f e s s e d o b j e c t i v e s of t o r t law are compensations f o r the i n j u r e d p a r t y , d e t e r r e n c e a g a i n s t s i m i l a r a c t s , and punishment of the o f f e n d e r . However, i n attempting to accomplish these t h r e e goals the t o r t system leaves a l o t to be d e s i r e d . In today's l e g a l p r a c t i c e the t o r t of n e g l i g e n c e has been r e f i n e d so t h a t there are r e a l l y t h r e e requirements which must e x i s t i n order t h a t the p l a i n t i f f (claimant) may r e c o v e r damages from the defendant. The f i r s t requirement i s t h a t the defend-ent "owed a duty of c a r e " to the p l a i n t i f f . The p r e s e n t t e s t i n r e s p e c t of t h i s element i s " f o r e s e e a b i l i t y " . I f the p r o v e r b i a l "reasonable man, s t a n d i n g i n the defendant's shoes, would have a n t i c i p a t e d t h a t want o f care on h i s p a r t might endanger the p h y s i c a l or mental h e a l t h of a person i n the p l a i n t i f f ' s p o s i t i o n then the defendant "owed a duty of c a r e " 7 t o the p l a i n t i f f . The second p r e r e q u i s i t e i s t h a t the defendant f a i l e d t o adhere t o a r e a s o n a b l e standard of c a r e , "the o m i s s i o n to do something which a reasonable man guided upon those con-s i d e r a t i o n s which o r d i n a r i l y r e g u l a t e the conduct of human a f f a i r s would do, or doing something which a prudent and reasonable man would not do.8 -11-Th e f i n a l r e q u i s i t e i s t h a t the p l a i n t i f f must prove t h a t the defendant's conduct caused the i n j u r y and t h a t i t c o u l d be reasonably f o r e s e e n t h a t the n e g l i g e n c e on the p a r t of the defendant might cause an i n j u r y or l o s s , s i m i l a r to t h a t 9 which was o c c a s i o n e d . Hughes vs Lord Advocate i s a u t h o r i t y f o r the p r o p o s i t i o n t h a t the exact d e t a i l s need not be f o r e s e e n as long as the "ki n d " of i n j u r y was f o r e s e e a b l e and a known source of danger was the cause of the accident."*"^ As i s q u i t e obvious, these terms are f a i r l y nebulous and hence judges and j u r i e s have a c e r t a i n degree of freedom i n a r r i v i n g at t h e i r d e c i s i o n s . G e n e r a l l y i t appears t h a t e v e r y t h i n g i s done t o f i n d t h a t the defendant was n e g l i g e n t i n order t o compensate the p l a i n t i f f , u n l e s s t h e r e i s an o v e r r i d i n g p o l i c y reason f o r p r o t e c t i n g the defendant, eg. must be some l i m i t -a t i o n on h i s duty of care i n order t o save him from c r u s h i n g economic l o s s e s o r c h a i n r e a c t i o n events over which the defendant has l i t t l e o r no c o n t r o l . I t i s a l s o e s s e n t i a l to r e c o g n i z e t h a t the burden of proof or o b l i g a t i o n to prove t h a t the defendant was at f a u l t i n terms o f the above requirements r e s t s w i t h the p l a i n t i f f , and consequently u n l e s s t h a t o b l i g a t i o n i s s a t i s f i e d the p l a i n t i f f w i l l not r e c o v e r any damages. In c i v i l c a ses, " a l l the p l a i n t i f f i s r e q u i r e d to do i n order t o succeed ... i s to s a t i s f y the j u r y t h a t on the balance o f p r o b a b i l i t i e s an i n f e r e n c e o f ne g l i g e n c e should be made'.'^ -12-Th i s burden i s l e s s r i g o r o u s than t h a t i n c r i m i n a l cases i n which the Crown must prove i t s case beyond a r e a s o n a b l e doubt, " I f a t the end of and on the whole of the case, t h e r e i s reasonable doubt, c r e a t e d by the evidence g i v e n by e i t h e r the p r o s e c u t i o n or the p r i s o n e r t h e p r o s e c u t i o n has not made out the case and the p r i s o n e r i s e n t i t l e d t o a c q u i t t a l . " 1 2 In order to a s s i s t the p l a i n t i f f i n surmounting the burden o f proof the d o c t r i n e of res ipsa l o q u i t u r was developed f o r c e r t a i n f a c t p a t t e r n s , "Where the t h i n g i s shown to be under the management of the defendant or h i s s e r v a n t s , and the a c c i d e n t i s such as i n the o r d i n a r y course of t h i n g s does not happen i f those who have management use proper care i t a f f o r d s reasonable evidence, i n the absence of e x p l a n a t i o n by the defendants, t h a t the a c c i d e n t arose from want of c a r e . However i t must be r e a l i z e d t h a t , " i t i s e r r o r to r e g a r d the maxim res ipsa l o q u i t u r as o p e r a t i n g to change the burden on a p l a i n t i f f t o prove n e g l i g e n c e i n t o a burden to d i s p r o v e n e g l i g e n c e " , but r a t h e r , " i f he (the p l a i n t i f f ) p roves, to the s a t i s f a c t i o n of the t r i b u n a l , f a c t s which b r i n g the maxim i n t o o p e r a t i o n , then u n l e s s the defendant produces an e x p l a n a t i o n e q u a l l y c o n s i s t e n t w i t h n e g l i g e n c e and no n e g l i g e n c e the p l a i n t i f f w i l l succeed."14 In B r i t i s h Columbia these l e g a l d e f i n i t i o n s have tremendous s i g n i f i c a n c e f o r the p l a i n t i f f and defendant a l i k e because c o n t r a r y to most oth e r p r o v i n c e s i n Canada, t h i s p r o v i n c e has 15 a l a r g e volume of c i v i l j u r y cases. Hence unl e s s the nuances of the l e g a l terminology are understood by the j u r y one of the -13-p a r t i e s may r e c e i v e an i n j u s t i c e i f the d e c i s i o n were compared w i t h the t h e o r e t i c a l outcome of the same case a d j u d i c a t e d by a judge s i t t i n g alone, who presumably has a s o l i d grasp o f such s u b t l e t i e s . A l s o the e x t e n s i v e use of a j u r y p r o b a b l y leads t o some delays because of the time r e q u i r e d ; t o s e l e c t a j u r y , t o e x p l a i n the p o i n t s of law to the jur y , . a n d to allo w the j u r y the o p p o r t u n i t y t o d e l i b e r a t e . However when the d u r a t i o n of t h i s d e l a y i s compared w i t h the w a i t i n g p e r i o d from the date an a c t i o n i s f i l e d t o the date of the t r i a l the f i r s t mentioned d e l a y i n a p a r t i c u l a r case would not be s i g -n i f i c a n t , eg. w a i t i n g p e r i o d t o get a t r i a l i n Vancouver i s one 16 year. P o s s i b l y the e x t r a time consumed may be r e l e v a n t when the system i s viewed as a whole. L e g i s l a t i v e Measures Now t h a t some i n s i g h t has been gained i n t o the nature of a t o r t a c t i o n l e t us review some of the case d e c i s i o n s and l e g i s l a t i v e steps which are p e r t i n e n t t o a motor v e h i c l e i n j u r y c l a i m . I t i s to be noted t h a t l e g i s l a t i o n enacted by a govern-ment i s g e n e r a l l y designed and implemented t o cure a d e f e c t i n the common law, or i n oth e r words, to make the c u r r e n t lav/ conform more c l o s e l y t o contemporary mores and v a l u e s . In 1809 the case of B u t t e r f i e l d vs Forrester came to t r i a l , and the d e c i s i o n had a profound e f f e c t on a l l t o r t a c t i o n s , but p a r t i c u l a r l y those i n v o l v i n g the automobile. The " r a t i o d e c i d e n d i " ( p r i n c i p l e ) o f the case was t h a t i n s i t u a t i o n s -14-i n w h i c h t h e p l a i n t i f f ( v i c t i m ) was a t f a u l t , r e g a r d l e s s o f t h e d e g r e e , he c o u l d n o t r e c o v e r any damages from a d e f e n d a n t who was a t f a u l t , even i f t h e l a t t e r was t h e more blameworthy 17 o f t h e two. Hence, i n common la w , any f a u l t , r e f e r r e d as " c o n t r i b u t o r y " n e g l i g e n c e , on t h e p a r t o f t h e c l a i m a n t was a t o t a l b a r t o h i s e f f o r t s t o r e c o v e r damages v i a a t o r t a c t i o n . A p p r o x i m a t e l y t h i r t y y e a r s l a t e r t h e l e g a l p o s i t i o n o f t h e " c o n t r i b u t o r y " n e g l i g e n t p l a i n t i f f was a l l e v i a t e d t o some e x t e n t by t h e d e c i s i o n i n Davies vs Mann i n w h i c h t h e 18 d o c t r i n e o f " l a s t c l e a r chance" was f i r s t e n u n c i a t e d . The maxim was t o a p p l y i n c i r c u m s t a n c e s i n w h i c h , though t h e p l a i n t i f f was a t f a u l t , he would s t i l l be e n t i t l e d t o r e c o v e r damages from a blameworthy d e f e n d a n t p r o v i d e d t h a t h i s (the p l a i n t i f f ' s ) i m p r o p e r a c t i o n p r e c e d e d t h a t o f t h e d e f e n d a n t and t h e f o r m e r ' s p l i g h t c o u l d have been f o r e s e e n by t h e d e f e n d a n t , and y e t t h e l a t t e r c a r e l e s s l y f a i l e d t o t a k e t h e 19 a p p r o p r i a t e s t e p s t o a v o i d t h e a c c i d e n t . T h i s d o c t r i n e i s s t i l l good law t o d a y , b u t i t i s c o n f i n e d t o c i r c u m s t a n c e s , as was t h e f a c t p a t t e r n i n t h e above c a s e , where t h e p l a i n t i f f i s n e g l i g e n t l y i n a r i s k y , y e t s t a t i c p o s i t i o n , and t h e d e f e n d a n t i s i n a dynamic r o l e , eg. a s t r e e t c a r ramming a c a r w h i c h was i m p r o p e r l y r e s t i n g a c r o s s t h e t r a c k s because t h e 20 o p e r a t o r o f t h e tram t a i l e d t o keep a p r o p e r l o o k o u t . -15-However the l a t t e r d e c i s i o n was not r e a l l y t h a t h e l p f u l i n automobile a c c i d e n t cases because most mishaps i n v o l v e d two or more moving c a r s , and hence the " l a s t c l e a r chance" d o c t r i n e was not a p p l i c a b l e . T h i s r a t h e r p e c u l i a r s i t u a t i o n arose because the common law developed long b e f o r e any one had even thought o f , l e t alone i n v e n t e d , a s e l f - p r o p e l l e d v e h i c l e and hence the " c o n t r i b u t o r y " n e g l i g e n c e r u l e was a complete anachronism i n the e r a of the motor v e h i c l e . The C o n t r i b u t o r y Negligence Act Consequently when the automboile became popul a r i n Canadian j u r i s d i c t i o n s l e g i s l a t i v e a c t i o n was taken to p r o v i d e f o r a more e q u i t a b l e s o l u t i o n to the automobile a c c i d e n t compensation problem. The Contributory Negligence Act which was passed i n 1925 i n B r i t i s h Columbia p e r m i t t e d the n e g l i g e n t p l a i n t i f f t o c o l l e c t damages to the e x t e n t o f the defendant's 21 degree of f a u l t . In r e a l i t y the Act i s misnamed because i t abrogated the " c o n t r i b u t o r y " n e g l i g e n c e r u l e and s u b s t i t u t e s a "comparative" n e g l i g e n t r u l e i n i t s p l a c e . No matter how i t i s d e s c r i b e d , i t was an important advance i n the compensation of t r a f f i c a c c i d e n t v i c t i m s , and i t i l l u s t r a t e s why the d e s i r e f o r reform i n automobile a c c i d e n t r e p a r a t i o n s i s very s t r o n g i n the U n i t e d S t a t e s . In most American s t a t e s the o l d " c o n t r i b -u t o r y " n e g l i g e n c e r u l e s t i l l a p p l i e s and hence the e l i g i b i l i t y f o r compensation i s g r e a t l y r e s t r i c t e d . -16--Manufacturer's L i a b i l i t y In 19 32 a case i n the t o r t law f i e l d opened new avenues f o r p l a i n t i f f s who were seeking compensation f o r t h e i r i n j u r i e s . Donoghue vs Stevenson d e c i d e d t h a t a consumer of a product c o u l d sue the manufacturer of t h a t product i n s p i t e 2 of the f a c t t h a t t h e r e was no c o n t r a c t between the two p a r t i e s . In England the p r i n c i p l e has been extended to cover t r a f f i c i n j u r y s i t u a t i o n s so t h a t an i n j u r e d p e d e s t r i a n s u c c e s s f u l l y sued the r e p a i r e r s of a l o r r y which was i n v o l v e d i n the a c c i d e n t 2 3 because of faulty workmanship. The l a t t e r case i s an important precedent which c o u l d w e l l be a p p l i e d i n Canada. The former case i s extremely important when one i s reminded of Ralph Nader's crusades a g a i n s t unsafe automobiles and the number of c a r s which are r e c a l l e d because of d e f e c t i v e p a r t s . The reason why i t i s advantageous to have the r i g h t t o sue the manufacturer r a t h e r than the d e a l e r i s t h a t i n some cases the d e a l e r w i l l l a c k the r e s o u r c e s to pay the assessed damages. The G r a t u i t o u s Passenger Another r e l e v a n t p o i n t i n the d i s c u s s i o n of automobile compensation concerns the g r a t u i t o u s passenger. Apparently i n s u r a n c e companies f e a r e d t h a t i f g r a t u i t o u s passengers were p e r m i t t e d t o sue the d r i v e r of the c a r i n which they were r i d i n g , the s i t u a t i o n would be conducive to f r a u d because i n most cases the two p a r t i e s would be f r i e n d s or r e l a t i v e s . -17-To a c e r t a i n e x t e n t t h i s i s t r u e because the B r i t i s h t r i a l system worked, and s t i l l works on the adversary b a s i s , which presumed t h a t the two p a r t i e s are t r u e opponents who would g i v e no q u a r t e r because they would s u f f e r the consequences, and hence each s i d e attempted to f u r t h e r i t s own s e l f i s h cause. In the g r a t u i t o u s passenger s i t u a t i o n , e s p e c i a l l y i n s i t u a t i o n s i n which the d r i v e r had i n s u r a n c e and the d r i v e r and passenger are f r i e n d s , the i n s u r a n c e companies argued t h a t the d r i v e r would have a n a t u r a l b i a s toward h i s f r i e n d , e s p e c i a l l y s i n c e he would not be paying the c o u r t award. A l s o c o l l u s i o n between the d r i v e r and h i s passenger might o c c u r , and because of the death of independent w i t n e s s e s the i n s u r e r might have a problem i n attempting to expose t h i s arrangement. On the o t h e r s i d e of the c o i n most passengers were, and a r e , of the g r a t u i t o u s v a r i e t y and hence r e s t r i c t i o n s on t h e i r r e c o v e r y r i g h t s would s e r i o u s l y impair any broad based compensation scheme. In 1938 an amendment was passed which s i g n a l e d t h a t the i n s u r a n c e i n d u s t r y lobby had won the day. The p r o v i s i o n of the Motor Vehicle Act b a r r e d any s u i t by a g r a t u i t o u s passenger 24 a g a i n s t h i s d r i v e r . However by 19 42 a compromise was i n t r o d u c e d , and i n p l a c e of the d e n i a l of a n e g l i g e n c e s u i t , the l e g i s l a t u r e s u b s t i t u t e d a lower standard of care i n r e s p e c t of a g r a t u i t o u s passenger and h i s d r i v e r , eg. such a passenger c o u l d o n l y r e c o v e r 25 i f he c o u l d prove t h a t the d r i v e r had been " g r o s s l y " n e g l i g e n t . -18-D e f i n i t i o n s of the term " g r o s s l y " n e g l i g e n t are q u i t e r a r e , but the f o l l o w i n g i s f a i r l y d e s c r i p t i v e , " [Gross n e g l i g e n c e ] i s a matter of degree t o which, i n the circ u m s t a n c e s , conduct l i e s below the reasonable i n a t t e n t i o n t o conse-quences . " 26 Although t h i s p r o v i s i o n reduced the chances of r e c o v e r y i t i s important t o keep i n mind t h a t i n some j u r i s d i c t i o n s i n Canada the g r a t u i t o u s passenger had no r e c o u r s e of a c t i o n a g a i n s t h i s 27 d r i v e r u n t i l r e c e n t l y . Before l e a v i n g t h i s t o p i c i t sho u l d be made c l e a r t h a t "gross" n e g l i g e n c e p r o v i s i o n o n l y a p p l i e d where the g r a t u i t o u s passenger was suing the d r i v e r i n the car i n which he was riding,- and only o r d i n a r y n e g l i g e n c e had to be proved when the g r a t u i t o u s passenger was su i n g the d r i v e r of another car i n v o l v e d i n the a c c i d e n t . A l s o as w i l l be seen i n a l a t e r chapter the "gross" n e g l i g e n c e r u l e has been r e p e a l e d i n B r i t i s h Columbia. F i n a n c i a l R e s p o n s i b i l i t y Laws Now l e t us t u r n our a t t e n t i o n t o some other B r i t i s h Columbia l e g i s l a t i v e p r o v i s i o n s which were designed t o ensure t h a t the a c c i d e n t v i c t i m r e c e i v e d some compensation i f he was able t o prove t h a t the other d r i v e r was at f a u l t . In 19 32 the s o - c a l l e d f i n a n c i a l r e s p o n s i b i l i t y laws were enacted, and the most prominent f e a t u r e o f t h i s l e g i s l a t i o n was the r i g h t of a Commissioner of Motor V e h i c l e s to suspend an i n d i v i d u a l ' s -19-d r i v e r l i c e n c e and l i c e n c e p l a t e s ; i f t h a t i n d i v i d u a l f a i l e d t o pay a judgment a r i s i n g out of a t r a f f i c a c c i d e n t , or i f he were c o n v i c t e d of c e r t a i n motor v e h i c l e or c r i m i n a l o f f e n c e s . In order t o have the suspension of the d r i v e r s l i c e n c e revoked, and the l i c e n c e p l a t e s r e t u r n e d , the i n d i v i d u a l had to pay the judgment or f i n e , and i n a d d i t i o n had t o show h i s f i n a n c i a l r e s p o n s i b i l i t y by p u r c h a s i n g l i a b i l i t y i n s u r a n c e or p o s t i n g 29 a bond or o t h e r s e c u r i t i e s w i t h the Commissioner. In a d d i t i o n the i n s u r e r was h e l d t o be a b s o l u t e l y l i a b l e i n r e s p e c t of the p r e s c r i b e d l i m i t s even though the i n s u r e d owner may have breached a s t a t u t o r y c o n d i t i o n of the automobile p o l i c y . P r i o r t o t h i s amendment such circumstances would have p r o v i d e d the i n s u r e r w i t h a l e g i t i m a t e reason f o r r e f u s i n g to pay a l i a b i l i t y s e t t l e m e n t or judgment p e r t a i n i n g to the i n s u r e d . In 1937 another amendment was passed which e f f e c t i v e l y made the owner of a c a r l e g a l l y l i a b l e f o r any t o r t c l a i m which arose as a r e s u l t of h i s car being i n v o l v e d i n an a c c i d e n t and being d r i v e n by another person w i t h h i s consent, 31 expressed or i m p l i e d . T h i s s e c t i o n was s i g n i f i c a n t because o f t e n the d r i v e r of a car may not have had i n s u r a n c e or o t h e r f i n a n c i a l r e s o u r c e s where as the owner was p r o b a b l y more prudent and/or wealthy, and hence the p l a i n t i f f can r e c o v e r h i s l o s s e s . In s p i t e of these amendments many v i c t i m s were s t i l l l e f t w i t h out any compensation, even where they c o u l d prove t h a t the defendant was n e g l i g e n t , because both the d r i v e r and / o r owner -20-d i d not c a r r y i n s u r a n c e or were without f i n a n c i a l b a c k i n g , or because the defendant was a h i t and run d r i v e r or a d r i v e r of a s t o l e n car i n which case the 19 37 amendment d i d not apply. I t should be p o i n t e d out t h a t p r i o r to the im-p l e m e n t a t i o n of the Wootton Report recommendations, which i s the p e r i o d under d i s c u s s i o n i n t h i s c hapter, i n s u r a n c e was o n l y compulsory f o r d r i v e r s under twenty-one y e a r s , and 32 t h i s p r o v i s i o n was not passed u n t i l 1959. S a f e t y R e s p o n s i b i l i t y Laws As a r e s u l t of these d e f i c i e n c i e s c e r t a i n important amendments were passed i n 1947. These s e c t i o n s of the Motor Vehicle Act attempted to f i l l the compensation gaps by encouraging d r i v e r s to be f i n a n c i a l l y r e s p o n s i b l e b e f o r e they became i n v o l v e d i n a c c i d e n t s , and hence permit t r a f f i c v i c t i m s to r e c o v e r compensation ( s a f e t y r e s p o n s i b i l i t y laws), or i f t h a t approach f a i l e d then the Act s p e c i f i e d t h a t a fund be c r e a t e d from which c e r t a i n c a t e g o r i e s of uncompensated v i c t i m s c o u l d r e c o v e r , eg. motor v e h i c l e c a s u a l t i e s w i t h "dry" judg-33 ments. The p h i l o s o p h y behind the s a f e t y r e s p o n s i b i l i t y laws was t h a t r a t h e r than run the r i s k of a l i c e n c e suspension be-34 cause of involvement i n an a c c i d e n t , or because of an 35 u n s a t i s f a c t o r y d r i v i n g r e c o r d , combined w i t h the f a i l u r e t o h o l d a v a l i d f i n a n c i a l r e s p o n s i b i l i t y c a r d or i n s u r a n c e , the 3 6 d r i v e r would make h i m s e l f f i n a n c i a l l y r e s p o n s i b l e . In a d d i t i o n , -21-i n the case of an a c c i d e n t , u n l e s s the owner c o u l d e s t a b l i s h h i s f i n a n c i a l r e s p o n s i b i l i t y the p o l i c e were a u t h o r i z e d t o impound h i s car u n t i l p r o o f of f i n a n c i a l r e s p o n s i b i l i t y was shown or the d r i v e r of the p e r t i n e n t car was found to be 37 3 8 i n n o c e n t . T h i s s a n c t i o n was r e p e a l e d i n 1963, a p p a r e n t l y because i t was c o n s i d e r e d to be too harsh. A l s o u n l e s s the d r i v e r c o u l d prove h i s f i n a n c i a l r e s -p o n s i b i l i t y he would not be e l i g i b l e t o have h i s l i c e n c e r e i n s t a t e d i f i t had been suspended because of h i s f a i l u r e 39 . . to pay a judgment, or h i s v i o l a t i o n of c e r t a i n v e h i c u l a r , 40 c r i m i n a l o f f e n c e s . However i n s p i t e of these worthy measures i t was e s t i m a t e d t h a t approximately 10 per cent of B r i t i s h Columbia's d r i v e r s were not f i n a n c i a l l y r e s p o n s i b l e i n 1967, 41 eg. no automobile i n s u r a n c e or f i n a n c i a l r e s p o n s i b i l i t y c a r d . Hence t h a t group of d r i v e r s were allowed one " f r e e b i t e " , b e f o r e t h e i r l i c e n c e s would be suspended and/or they would have t o g i v e p r o o f of t h e i r f i n a n c i a l r e s p o n s i b i l i t y . Recogniz-i n g the shortcomings of the f i n a n c i a l r e s p o n s i b i l i t y laws the T r a f f i c V i c t i m s Indemnity Fund was c r e a t e d "to p r o v i d e " compensation f o r automobile v i c t i m s of u n i n s u r e d , f i n a n c i a l l y i r r e s p o n s i b l e d r i v e r s , h i t - a n d - r u n d r i v e r s , and d r i v e r s of 42 s t o l e n v e h i c l e s " . The l i m i t s imposed by the l e g i s l a t i o n i n r e l a t i o n to compensation a v a i l a b l e from the fund are the same as t h a t of s t a t u t o r y minimun f o r l i a b i l i t y p o l i c i e s , eg. 43 $50,000 i n one a c c i d e n t . I t should a l s o be noted t h a t the -22-v i c t i m must e s t a b l i s h t h a t another p a r t y has been n e g l i g e n t i n o r d e r to r e c o v e r from the fund, and t h a t the h i t - a n d - r u n and s t o l e n v e h i c l e p r o v i s i o n s o n l y apply to b o d i l y i n j u r y and not to p r o p e r t y damage because of the r i s k of f r a u d and 44 . c o l l u s i o n . T h i s fund helped to f i l l the compensation gaps, but i t c e r t a i n l y d i d not e l i m i n a t e them. Damages Another aspect of the t o r t r e p a r a t i o n system which should be d i s c u s s e d i s the assessment of damages by a judge and j u r y . The f o l l o w i n g i s not meant to be an e x h a u s t i v e study of the t o p i c , but merely a broad o u t l i n e to enable the reader to g a i n some understanding of the c u r r e n t t o r t law, and t o serve as a b a s i s f o r comparison w i t h v a r i o u s p r o p o s a l s which were enacted, a f t e r the Wootton Report, i n B r i t i s h Columbia or those which may be i n t r o d u c e d i n the f u t u r e . The f i r s t f e a t u r e of the damage award i s t h a t i t i s made i n a s i n g l e lump sum b a s i c a l l y because i t i s more expedient than p e r i o d i c payments and because i t i s the t r a d i t i o n a l way of g r a n t i n g the common law remedy of damages. The assessment f a l l s i n t o two broad c a t e g o r i e s . The f i r s t i s r e f e r r e d t o as " s p e c i a l " damages and t h i s covers l o s s e s which have been i n c u r r e d p r i o r t o the t r i a l and can be p r e c i s e l y c a l c u l a t e d , 45 eg. m e d i c a l payments. The second category i s c a l l e d " g e n e r a l " damages, and covers f u t u r e expected l o s s e s which cannot be c a l -46 c u l a t e d , but only e s t i m a t e d . •23-Included i n t h i s c l a s s i s the category of damages known as "pain and s u f f e r i n g " which encompasses reduced l i f e e x p e c t a t i o n and the r e s t r i c t i o n of enjoyment of l i f e because 4 7 o f the v i c t i m s ' d i s a b i l i t i e s . In the l e a d i n g Canadian case on damages assessment f o r t o r t i o u s l i a b i l i t y , The Queen vs Jennings , i t was h e l d t h a t the l o s s o f enjoyment of l i f e i s not reduced by the f a c t t h a t the p l a i n t i f f i s unaware of 4 8 h i s c o n d i t i o n . The p l a i n t i f f i s a l s o e n t i t l e d t o r e c e i v e 49 a t r a d i t i o n a l sum i n r e s p e c t of h i s l o s s o f l i f e expectancy. A l s o the a c c i d e n t v i c t i m has a r i g h t t o f u r t h e r g e n e r a l damages under the "head" of expected f u t u r e l o s s of e a r n i n g c a p a c i t y . There i s some doubt as t o the r e l e v a n t p e r i o d f o r which damages should be awarded, eg. should the v i c t i m ' s p r e - a c c i d e n t or p o s t - a c c i d e n t l i f e expectancy be u t i l i z e d as a b a s i s . An A u s t r a l i a n case i s an a u t h o r i t y f o r the pro-50 p o s i t i o n t h a t i t i s the p r e - a c c i d e n t l i f e e x p e c t a t i o n p e r i o d 51 where as the B r i t i s h c o u r t s favour the p o s t - a c c i d e n t p e r i o d . The forementioned l e a d i n g Canadian d i v i s i o n does not c l a r i f y 52 the Canadian law. I t i s a l s o i n t e r e s t i n g to note t h a t the Jennings case deci d e d t h a t income taxes s h o u l d not be a f a c t o r i n the 53 c a l c u l a t i o n of l o s s of e a r n i n g s . Recently t h i s approach was d i s t i n g u i s h e d so t h a t the r u l e i n the above case o n l y a p p l i e s i n n o n - f a t a l i n j u r y s i t u a t i o n s , and i f a t r a f f i c v i c t i m has d i e d b e f o r e the t r i a l , then the compensation awarded -24-to h i s dependents w i l l make allowance f o r income taxes which the deceased would have p a i d i f he were a l i v e , and g a i n f u l l y 54 employed. L a s t l y i t should be p o i n t e d out t h a t t h e r e i s a r e d u c t i o n f o r the " c o n t i n g e n c i e s of l i f e " , eg. chance the p l a i n t i f f would become i l l or unemployed i f the a c c i d e n t had not occured, 55 and no a t t e n t i o n i s p a i d to the i n f l a t i o n f a c t o r . Two o t h e r i s s u e s i n r e s p e c t o f damage assessment sh o u l d be r e c o g n i z e d . F i r s t l y a lawyer w i l l o f t e n d e l a y a t r i a l on b e h a l f of a p l a i n t i f f i n o r d e r t h a t h i s ( p l a i n t i f f ' s ) m e d i c a l c o n d i t i o n has s t a b i l i z e d so t h a t the lawyer and c o u r t can estimate f u t u r e l o s s e s w i t h g r e a t e r accuracy. T h i s delay i s the r e s u l t of the s i n g l e lump sum award procedure. A l s o i t may be of i n t e r e s t to note t h a t a c c o r d i n g t o common law the death of a t o r t v i c t i m s e v e r e l y l i m i t e d the 56 compensation awarded to h i s s u r v i v o r s . However t h i s d e f e c t has been overcome v i a the l e g i s l a t i v e r o u t e and hence the s u r v i v o r s do not l o s e any s i g n i f i c a n t r i g h t t o damages because 5 7 of the victim's death. Summary Now t h a t the prominent f e a t u r e s of the pre-Wootton Report p e r i o d have been o u t l i n e d i t may be u s e f u l t o b r i e f l y r e c i t e the major problems of the t o r t compensation system. These -25-disadvantages may then be compared w i t h the d i f f i c u l t i e s i n h e r e n t i n proposed schemes or r e c e n t l y enacted l e g i s l a t i o n which w i l l be d i s c u s s e d a t a l a t e r stage. F i r s t l y t here are t h r e e c l a s s e s of d r i v e r s who cannot re c o v e r under the t o r t system. They are the n e g l i g e n t d r i v e r who i s i n v o l v e d i n a s i n g l e c a r a c c i d e n t or i s i n a m u l t i p l e c a r a c c i d e n t i n which he i s 100% a t f a u l t , the d r i v e r who i s i n v o l v e d i n an "unavoidable" a c c i d e n t , eg. no p a r t y can be blamed, and t h i r d l y those d r i v e r s who because of the burden of p r o o f and o t h e r l e g a l r oadblocks cannot o b t a i n a judgment a g a i n s t a defendent. T h i s latter category i s a l s o very p e r t i n e n t to the g r a t u i t o u s passenger s i t u a t i o n . Secondly t h e r e i s the gap between economic l o s s and compensation recovered which r e s u l t s from the p r o v i s o t h a t the p l a i n t i f f must not be p a r t i a l l y n e g l i g e n t . T h i s , of course, assumes t h a t the p l a i n t i f f can prove n e g l i g e n c e a g a i n s t a defendent. I f not the gap widens. T h i r d l y t h e r e i s the d e l a y f a c t o r . In Vancouver an automobile a c c i d e n t w i l l not come to t r i a l u n t i l one year 5 8 a f t e r the c l a i m i s f i l e d . T h i s holdup can cause severe economic h a r d s h i p s and r e t a r d e f f o r t s to r e h a b i l i t a t e the v i c t i m . F o u r t h l y the system i s expensive s i n c e f o r every $1.60 p a i d i n auto i n s u r a n c e premiums onl y $1.0 0 i s r e t u r n e d i n 59 the form of l o s s b e n e f i t s . On top of t h i s t h e r e i s the -26-c o s t of s o l i c i t o r ' s f e e s , eg. 11-16% of the p l a i n t i f f s award. L a s t l y t h e r e i s some s u s p i c i o n t h a t i n order to o b t a i n compensation, or from the other s t a n d p o i n t , i n order to 61 a v o i d a judgment i n d i v i d u a l s tend to be'somewhat d i s h o n e s t , and t h i s makes the t o r t system of compensation even more u n c e r t a i n and i s conducive to d i s r e s p e c t of the law i n g e n e r a l . T h i s i s the compensation system as i t e x i s t e d p r i o r t o the implementation Wootton Report recommendations. Is there a b e t t e r scheme, maybe the next chapters w i l l p r o v i d e us w i t h an answer. However the reader should be forewarned t h a t u n f o r t u n a t e l y , or p o s s i b l y f o r t u n a t e l y , the argument as to whether t h e r e i s a b e t t e r method of h a n d l i n g automobile compensation c l a i m s , i s almost i m p o s s i b l e to prove q u a n t i t a -t i v e l y . CHAPTER I I I AUTOMOBILE ACCIDENT COMPENSATION IN OTHER JURISDICTIONS  I n t r o d u c t i o n In t h i s chapter we w i l l be examining the r e p a r a t i o n systems i n o t h e r j u r i s d i c t i o n s i n o r d e r to g a i n some i n s i g h t i n t o the p r a c t i c a l a l t e r n a t i v e s t o the B r i t i s h Columbia automobile a c c i d e n t compensation system which was o p e r a t i v e p r i o r to the implementation of the Wootton Report recommendations i n 1970. These working p l a n s , as c o n t r a s t e d w i t h p r o p o s a l s , are v a l u a b l e guides because p r a c t i c e can be q u i t e d i f f e r e n t from t h e o r y , eg. s o c i a l , economic, and p o l i t i c a l f a c t o r s may p r e c l u d e the i n t r o d u c t i o n of the "best" t h e o r e t i c a l p r o p o s a l . A l s o we are able to l e a r n whether a p a r t i c u l a r approach has been e f f e c t i v e as i n d i c a t e d by the a t t i t u d e of the r e l e v a n t p a r t i e s , eg. t r a f f i c v i c t i m s , governments, lawyers, t a x p a y e r s , e t c . C o n v e r s e l y i t must be r e c o g n i z e d t h a t the i n s t i t u t i o n of law reform i n a d e s i g n a t e d country depends to a l a r g e degree on the s o c i e t a l a t t i t u d e toward the proposed l e g i s l a t i o n . In p a r t i c u l a r the p o l i t i c a l p h i l o s o p h y , i n i t s broadest sense, of the c i t i z e n s who w i l l be s u b j e c t to the law i s c r u c i a l . Hence the p r e r e q u i s i t e of any v i a b l e a l t e r n a t i v e i s t h a t i t i s i n s t e p w i t h the p r e s e n t p o l i t i c a l o u t l o o k of the m a j o r i t y of the people i n the j u r i s d i c t i o n i n which the law w i l l be i n t r o d u c e d . T h e r e f o r e although a system may appear to f u n c t i o n extremely w e l l i n one country, f o r the -27--28-forementioned reason i t may be unacceptable i n another s i n c e i t v i o l a t e s the status quo. With these p o i n t s i n mind i t i s proposed t h a t we review the s a l i e n t f e a t u r e s of the automobile a c c i d e n t compensation schemes: i n t h r e e c o n t i n e n t a l European c o u n t r i e s ; France, West Germany, and Sweden, i n two American s t a t e s ; Massa-c h u s e t t s and F l o r i d a , i n two Canadian p r o v i n c e s ; Saskatchewan and O n t a r i o , and i n New Zealand. The f i r s t seven of these j u r i s d i c t i o n s have enacted, on or b e f o r e January 1, 1972, o p e r a t i v e l e g i s l a t i o n which departs from the pure t o r t approach which was d i s c u s s e d i n the l a s t c h a p ter. A l s o the reader s h o u l d be cogni zant of the f a c t t h a t s u p p o r t i n g and complementary f a c i l i t i e s , eg. s o c i a l i n s u r a n c e schemes, p a r t i c u l a r l y i n c o n t i n e n t a l Europe, are r e a l l y component p a r t s of the t r a f f i c v i c t i m s r e p a r a t i o n system. These f e a t u r e s w i l l be mentioned i n the a p p l i c a b l e cases. The eighth j u r i s d i c t i o n i n the above l i s t i s New Zealand, and the reason why i t i s p e r t i n e n t to our t o p i c i s t h a t a B i l l p r e -sented to the New Zealand P a r l i a m e n t has recommended t h a t t o r t a c t i o n s h o u l d be a b o l i s h e d f o r t r a f f i c a c c i d e n t cases. Although t h i s p r o p o s a l i s not law as of January 1, 1972 i t i s s i g n i f i c a n t and r e q u i r e s our a t t e n t i o n . F rance.^ France belongs to the c i v i l law group, eg. laws which -29-are p r o f o u n d l y i n f l u e n c e d by Roman law and are based on codes r a t h e r than j u d i c i a l d e c i s i o n s , but the t r a d i t i o n a l source o f compensation, s i m i l a r t o common law j u r i s d i c t i o n s , i s 2 the law of t o r t . However u n l i k e most common law systems, the burden of proof l i e s upon the defendant r a t h e r than 3 on the c l a i m a n t . By means of a c o u r t d e c i s i o n , A r t i c l e 1384, o f the C i v i l Code of 1804 which reads i n p a r t , "... one i s l i a b l e not o n l y f o r the damage caused by one's own a c t , but a l s o f o r t h a t caused ... by the t h i n g s which are i n one's custody^" was i n t e r p r e t e d as meaning t h a t t h e r e was a presumption of f a u l t or l i a b i l i t y on the p a r t of the c u s t o d i a n , eg. g e n e r a l l y 4 the owner. Consequently t h a t p a r t y i s l i a b l e f o r damage un l e s s he can prove t h a t the a c c i d e n t was caused by the f a u l t 5 of the v i c t i m or a t h i r d p a r t y . A l s o i f the c u s t o d i a n can prove, "the occurrence of a f o r t u i t o u s event", he w i l l be exonerated t o the exte n t t h a t the a c c i d e n t was not "normally" f o r e s e e a b l e and hence un a v o i d a b l e , eg. i f not "normally" f o r e s e e a b l e then no l i a b i l i t y , i f abnormal t o a c e r t a i n e x t e n t , then a r e d u c t i o n i n l i a b i l i t y t o the same degree.^ A r t i c l e s 1382 and 1383 p r o v i d e the s u b s t a n t i v e p o r t i o n of the t o r t law, and s t a t e t h a t an i n d i v i d u a l i s l i a b l e f o r i n j u r y or damage caused by h i s blameworthy conduct, which 7 may only c o n s i s t of l a c k of care or imprudence. -30-R e f e r r i n g t o A r t i c l e 1384 again i t should be p o i n t e d out t h a t i n an a c c i d e n t i n v o l v i n g a p e d e s t r i a n and a car the c u s t o d i a n , i s c o n f r o n t e d w i t h a prima facie presumption of f a u l t , and i n a c o l l i s i o n i n v o l v i n g two or more v e h i c l e s , i f n e g l i g e n c e cannot be e s t a b l i s h e d then each d r i v e r and h i s passenger (s) can take advantage of the presumption o f g f a u l t and r e c o v e r f u l l compensation. T h i s may be c o n t r a s t e d w i t h the common law t o r t p r o v i s i o n s i n which case, on the same f a c t s , n e i t h e r p a r t y would be e n t i t l e d t o r e c o v e r . I f the defendant c u s t o d i a n i n the French s i t u a t i o n i s unable t o prove h i s l a c k of n e g l i g e n c e the p l a i n t i f f would r e c o v e r f u l l damages, but i f the cl a i m a n t i s " c o n t r i b u t o r i l y " n e g l i g e n t then compensation i s awarded on a "comparative" n e g l i g e n c e b a s i s . As i s the s i t u a t i o n i n common law j u r i s d i c t i o n s , the g r a t u i t o u s passenger i f a r e l a t i v e i s not p l a c e d i n a very d e s i r a b l e p o s i t i o n s i n c e no i n s u r a n c e covers the l i a b i l i t y of a d r i v e r i n r e s p e c t of h i s " f a m i l y " passengers, and t h e r e -f o r e they can onl y r e c o v e r i f the oth e r d r i v e r i s a t f a u l t . I f the g r a t u i t o u s passenger (s) are not r e l a t e d to the d r i v e r or c u s t o d i a n then they may r e c o v e r from the d r i v e r s and owners of both cars who are j o i n t l y l i a b l e . ^ I t i s noteworthy t h a t 76 pe r c e n t of the i n j u r e d v i c t i m s r e c e i v e some compensation, eg. 50 pe r c e n t r e c e i v e f u l l com-p e n s a t i o n and 26 pe r c e n t r e a l i z e about 53 pe r c e n t of t h e i r -31-l o s s i n the form of t o r t awards. However as M. Tunc r e v e a l s the French c o u r t s i n awarding compensation d i s -regarded the conduct of the p a r t i e s , and p r o v i d e d compens-a t i o n to the v i c t i m , eg. p e d e s t r i a n s r e c e i v e d awards i n 95 p e r c e n t of the c a s e s , d e s p i t e the f a c t t h a t i n 70 per-13 cent of the cases they were the o n l y cause o f the a c c i d e n t . As i s the s i t u a t i o n i n common law j u r i s d i c t i o n s averages can be m i s l e a d i n g and 24 p e r c e n t of the a c c i d e n t v i c t i m s r e c e i v e d no compensation, eg. e s p e c i a l l y i n the r e l a t i v e , g r a t u i t o u s passenger circumstance and t h i s i n d i c a t e s t h a t the system has some u n d e s i r a b l e l o o p h o l e s , d e s p i t e i t s r e l a t i v e e f f e c t i v e n e s s , as compared w i t h O n t a r i o or B r i t i s h Columbia. The g e n e r o s i t y of the c o u r t d e c i s i o n s are the r e s u l t of the e x i s t e n c e o f l i a b i l i t y i n s u r a n c e which encourage judges t o d i s t o r t the law s i n c e they r e a l i z e t h a t the ins u r a n c e companies and not the defendant w i l l bear the loss.*" L i a b i l i t y i n s u r a n c e i n France i s compulsory and a Fund has been s e t up to cover the cases of uninsured or h i t and run , . 16 d r i v e r s . Superimposed on the l e g a l r i g h t s of a c c i d e n t v i c t i m s i s the s o c i a l s e c u r i t y scheme. At l e a s t 65% of the French p o p u l a t i o n are covered by the s o c i a l s e c u r i t y system, which 17 p r o v i d e s b e n e f i t s to cover m e d i c a l and p h a r m a c e u t i c a l c o s t s . The scope of coverage depends on c e r t a i n f ee sch e d u l e s , but 18 i n many cases t o t a l reimbursement i s p r o v i d e d . B e n e f i t s -32-are a l s o a v a i l a b l e t o compensate f o r l o s s of income i n cases 19 of p a r t i a l or permanent d i s a b i l i t y or death. The p e r i o d i c d i s a b i l i t y b e n e f i t s range from o n e - h a l f t o t w o - t h i r d s of the v i c t i m s wage, but there i s a s p e c i f i e d c e i l i n g on the wage which may be used i n the c a l c u l a t i o n of b e n e f i t s , eg. maximum base wage i s e i g h t times the minimum wage.^ The b e n e f i t may be r e p l a c e d or r e v i s e d depending on the adequacy of the award i n r e l a t i o n to the v i c t i m ' s c o n d i t i o n . I f a f t e r t h r e e years he i s d e p r i v e d of tw o - t h i r d s or more of h i s e a r n i n g a b i l i t y , he w i l l be e n t i t l e d to a pension equal t o o n e - t h i r d of h i s former income i f he i s s t i l l a ble t o work i n some c a p a c i t y , or i f t o t a l l y d i s a b l e d then h i s pension r i s e s t o one - h a l f o f h i s former i n c o m e . z x I f the t r a f f i c v i c t i m d i e s as a r e s u l t of the a c c i d e n t then h i s f a m i l y r e c e i v e s a lump sum equal t o three months of the de-22 ceased's s a l a r y . Another major source o f compensation i s the mutual fund or s o c i e t y which, i t i s estim a t e d ^ c o v e r s o n e - t h i r d of the p o p u l a t i o n a g a i n s t a c c i d e n t s , and hence i n c r e a s e s the per-centage of the p o p u l a t i o n which has some form of compensation 23 i n r e s p e c t of t r a f f i c a c c i d e n t s . L i f e i n s u r a n c e and c o l l e c t i v e l a b o r laws a l s o c o n t r i b u t e 24 to the r e l i e f of the auto a c c i d e n t v i c t i m . In r e s p e c t of the t o r t a c t i o n the v i c t i m i s allowed t o cumulate h i s i n s u r a n c e and mutual s o c i e t y b e n e f i t s w i t h h i s t o r t r e c o v e r y but h i s s o c i a l s e c u r i t y payments w i l l be de--33-ducted from any s u c c e s s f u l t o r t a c t i o n awards. B r i e f l y the major d e f e c t s of the French compensation system f o r t r a f f i c v i c t i m s are s i m i l a r t o those i n North America, eg. c o u r t c o n g e s t i o n , s e t t l e m e n t d e l a y s , c o s t s and i n e f f i c i e n c i e s of the system, u n c e r t a i n t y of awards, e t c . However u n l i k e Canada, a more comprehensive s o c i a l s e c u r i t y scheme i s o p e r a t i v e i n France, and hence the f o r e -mentioned d i f f i c u l t i e s , b a s i c a l l y a s s o c i a t e d w i t h the t o r t a c t i o n , are not so overwhelming. 27 West Germany West Germany i s a l s o a member of the c i v i l law group. and the t o r t a c t i o n i s an important source f o r t r a f f i c r e p a r a t i o n s . However t h e r e are two l e g a l b a s i s f o r l i a b i l i t y i n motor v e h i c l e a c c i d e n t s ; g e n e r a l t o r t and a s p e c i a l motor v e h i c l e keeper's l i a b i l i t y , eg. g e n e r a l l y the "keeper" i s 2 8 the owner of the motor v e h i c l e . I t i s important t h a t the reader understands t h a t there are s i g n i f i c a n t d i f f e r e n c e s between the two b a s i s of l i a b i l i t y . B r o adly speaking the d i s s i m i l a r i t i e s are r e l a t e d t o the f a u l t concept and the scope 29 of compensation. Let us f i r s t review the f e a t u r e s of the motor v e h i c l e keeper's l i a b i l i t y . In r e s p e c t o f l e g a l r e s p o n s i b i l i t y , the keeper, as a defendant, can o n l y escape an adverse judgement, -34-"... i f he can prove t h a t the a c c i d e n t was caused by an 'unavoidable occurrence 1".30 T h i s category would i n c l u d e such circumstances i n which the conduct of another d r i v e r , p e d e s t r i a n , c y c l i s t s , or animal was the cause of the a c c i d e n t , and at the same time the keeper must prove t h a t both he and h i s d r i v e r , i f the owner was not d r i v i n g , e x e r c i s e d r e a s o n a b l e c a r e , eg. n e i t h e r 31 were c o n t r i b u t o r i l y n e g l i g e n t . I t should be noted t h a t i f both p a r t i e s were " c o n t r i b u t o r i l y " n e g l i g e n t then t h e r e . . 32 i s a p r o p o r t i o n a l r e d u c t i o n i n l i a b i l i t y . A l s o the term "unavoidable o c c u r r e n c e s " does not encompass the mechanical d e f e c t s s i t u a t i o n , and hence i n t h i s s i t u a t i o n the keeper i s a b s o l u t e l y l i a b l e i n s p i t e of the f a c t t h a t he was not ne-33 g l i g e n t . L a s t l y u n l e s s the car i s being used w i t h the 34 owner's consent the s p e c i a l l i a b i l i t y i s not a p p l i c a b l e . In summary, t h i s b a s i s of l e g a l a c t i o n s h i f t s the burden of p r o o f to the defendant (keeper) and a l s o r e s t r i c t s h i s range of defences. As f a r as the scope of compensation i s concerned t h e r e are l i m i t a t i o n s on the awards a v a i l a b l e under the s p e c i a l keeper's l i a b i l i t y form of a c t i o n . In the case of death or b o d i l y i n j u r y the maximum award i s U.S. $68,000 or an annuity of U.S. $4,000, and a U.S. $14,000 l i m i t i n the 35 case of p r o p e r t y damage. These b e n e f i t s are designed to cover such items as m e d i c a l and b u r i a l expenses, l o s s of income, and necessary income to p r o v i d e f o r i n c r e a s e d needs. Non-pecuniary or g e n e r a l damages, which p e r t a i n to p a i n and s u f f e r i n g and d i s f i g u r e m e n t are excluded from the heads 37 of damages under t h i s cause of a c t i o n . In r e s p e c t of the g e n e r a l t o r t s t y l e of a c t i o n the c l a i m a n t must prove t h a t the defendant was at f a u l t , but a p p a r e n t l y the case law eases the onus of p r o o f i n these s u i t s , but not to such an e x t e n t , t h a t l i a b i l i t y can be e s t a b l i s h e d as r e a d i l y as under the s p e c i a l keeper's pro-3 8 v i s i o n s . A l s o the compensation i s u n l i m i t e d i n r e l a t i o n to monetary awards and non-pecuniary heads of damages can a l s o be r e c o v e r e d , but e s p e c i a l l y i n r e g a r d to the l a t t e r , the awards are not as generous as those i n the U n i t e d S t a t e s To a v o i d the f r u s t a t i o n and agony of uninsured d r i v e r s , l i a b i l i t y i n s u r a n c e was made compulsory i n 19 39 t o cover awards up to the l i m i t s s e t out under the s p e c i a l motor 40 v e h i c l e ' s keeper l i a b i l i t y . A l s o t h e r e are Funds s e t up to handle such c o n t i n g e n c i e s as uninsured or h i t - a n d - r u n 41 d r i v e r s , and i n s o l v e n t i n s u r e r s . As i s the s i t u a t i o n i n most European c o u n t r i e s , s o c i a l i n s u r a n c e p l a y s an important r o l e i n the t r a f f i c v i c t i m compensation system. In Germany the v i c t i m s of motor v e h i c l e a c c i d e n t s r e l y more h e a v i l y on s o c i a l i n s u r a n c e than they do 42 on t o r t r e c o v e r y . B a s i c medical coverage i s a v a i l a b l e t o everyone under one form or another of the a c c i d e n t and s i c k -- 3 6 -ness plan. The s o c i a l insurance also provides between 75-85 percent of a victim's gross wages i f he i s employed and temporarily disabled, and a pension, related to the victim's gross wage, length of time insured, and the general 44 wage l e v e l , i n case of permanent d i s a b i l i t y . Both the accident and pension insurance o f f e r survivor benefits i n death cases, and the pensions are adjusted to match changes 45 i n general wage l e v e l s . In conclusion i t would appear that the dual l e g a l actions and comprehensive s o c i a l insurance program provide very extensive compensation i n respect of t r a f f i c victims, but unfortunately no estimate of the scope and degree of repar-ation i s r e a d i l y a v a i l a b l e , but i t i s reported that 85 percent 46 of the population i s covered by the health insurance scheme. a A 4 7 Sweden. The. laws of Sweden and other Scandinavian countries are based on codes yet j u d i c i a l decisions are s i g n i f i c a n t i n the 48 development of the rules which govern t o r t cases. The t o r t law of Sweden i s founded on negligence, but the onus of proof l i e s on the defendant. By a s p e c i a l statute governing motor vehicle l i a b i l i t y the driver and owner must prove that the d r i v e r was not negligent and that the accident was not 49 caused by a mechanical defect. Unless they succeed on the f i r s t issue both owner and driver are l i a b l e , and the owner -37-i s l e g a l l y r e s p o n s i b l e i f he cannot e s t a b l i s h the second p o i n t . 5 0 I f both p a r t i e s i n the a c c i d e n t are n e g l i g e n t 51 then the comparative n e g l i g e n c e r u l e i s a p p l i e d . Let us peruse the r i g h t s o f the d i f f e r e n t p o s s i b l e v i c t i m s of a t r a f f i c v i c t i m , eg. passengers, p e d e s t r i a n s and d r i v e r s . As f a r as the passenger i s concerned he would appear t o be i n a e n v i a b l e p o s i t i o n . There i s no guest s t a t u t e and the passenger's r i g h t to p e r s o n a l i n j u r y 52 compensation i s not impaired by the n e g l i g e n c e of h i s d r i v e r . One of the few circumstances i n which the passenger's n e g l i -gence w i l l reduce h i s award i s i f the v i c t i m accepts a r i d e 53 . . when he knows the d r i v e r i s drunk. These p r o v i s i o n s are q u i t e d i f f e r e n t from the r i g h t s of g r a t u i t o u s passengers i n v o l v e d i n a B r i t i s h Columbia t r a f f i c a c c i d e n t b e f o r e 1969-1970, s i n c e the Contributory Negligence Act s t a t e d t h a t n e g l i g e n c e on the p a r t of passenger or h i s d r i v e r would reduce h i s 54 r i g h t t o compensation from the other d r i v e r . In 1969-70, the p r o v i s i o n was r e p e a l e d i n r e s p e c t of a g r a t u i t o u s passenger's r i g h t o f r e c o v e r y i n cases i n which h i s d r i v e r was c o n t r i b u t -55 o n l y n e g l i g e n t . The p e d e s t r i a n s do not f a r e so w e l l . In s p i t e of the presumption of f a u l t which may be invoked a g a i n s t the owner and d r i v e r , the owner and d r i v e r may e x c u l p a t e themselves i n c e r t a i n c ases, and even i f they are not completely s u c c e s s -f u l they can argue t h a t the v i c t i m ' s c o n t r i b u t o r y n e g l i g e n c e -38-should reduce h i s damages. The d r i v e r i s i n the worst p o s i t i o n s i n c e i n a s i n g l e car a c c i d e n t he w i l l have no c l a i m i n t o r t , i n most cases, and i n a m u l t i p l e car a c c i d e n t the "comparative" n e g l i g e n c e 57 r u l e w i l l apply. In o r d e r t o p r o v i d e some r e l i e f , e s p e c i a l l y f o r d r i v e r s , a v o l u n t a r y a c c i d e n t b e n e f i t p o l i c y i s a v a i l a b l e t o cover d i s a b i l i t y and death but t h i s s t i l l l eaves a gap i n cases of minor i n j u r y and m e d i c a l expenses not de f r a y e d by the 5 8 n a t i o n a l i n s u r a n c e p l a n . L i a b i l i t y i n s u r a n c e f o r automobiles was made compulsory i n 1929, and u n l i k e most other j u r i s d i c t i o n s the i n s u r a n c e i s o p e r a t i v e even though the owner i s not l i a b l e , eg. i n j u r y 59 caused by a s t o l e n c a r . Another d i s s i m i l a r i t y i s t h a t the in s u r a n c e coverages have maximum, r a t h e r than minimum l i m i t s , but are so h i g h t h a t they are o n l y academic i n nat u r e , eg. 6 0 U.S. $5 m i l l i o n f o r p e r s o n a l i n j u r y . Working i n c o n j u n c t i o n w i t h the t o r t system i s the s o c i a l s e c u r i t y scheme which i s so e x t e n s i v e , t h a t , as i s the case of West Germany, i n r e a l i t y i t p r o v i d e s the b a s i c p r o t e c t i o n , and t o r t awards and p r i v a t e i n s u r a n c e are merely 61 supplements to the n a t i o n a l i n s u r a n c e p l a n . Under t h i s scheme m e d i c a l expenses are almost f u l l y covered. A t r a f f i c v i c t i m ' s h o s p i t a l and me d i c a l care are f r e e i f he i s t r e a t e d 6 2 i n h i s home m u n i c i p a l i t y . I f he goes elsewhere he w i l l have -39-t o pay a l l expenses above those which would have been 6 3 a ssessed i f he were t r e a t e d i n h i s l o c a l h o s p i t a l . I f the v i c t i m i s not h o s p i t a l i z e d then o n l y 75 p e r c e n t of the do c t o r ' s fees are reimbursed, and he w i l l a l s o be r e q u i r e d to pay f o r drugs and r e h a b i l i t a t i o n s e r v i c e s , although those l a s t two items are h e a v i l y s u b s i d i z e d by the govern-ment ( s t a t e and l o c a l ) . ^ E x t e n s i v e compensation i s a v a i l a b l e f o r l o s s of income and f o r s u r v i v o r ' s b e n e f i t s . For temporary d i s a b i l i t y the average r a t e of compensation i s 70 p e r c e n t o f l o s s i n -come. In cases of permanent d i s a b i l i t y t h e r e i s a b a s i c pension which i s designed to p r o v i d e a minimum standard of l i v i n g , eg. U.S. $1(700 a year, and the p o r t i o n t o be p a i d out depends on the b e n e f i c i a r y ' s degree of d i s a b i l i t y . ^ To p r o v i d e r e p a r a t i o n f o r l o s s of income t h e r e i s the n a t i o n a l supplementary pension which can p r o v i d e up to 6 0 p e r c e n t of the average income of the t r a f f i c v i c t i m , but i t i s based on p a s t e a r n i n g s , eg. c o n t r i b u t i o n s made by i n d i v i d u a l t o w e l f a r e o f the s t a t e , r a t h e r then h i s expected f u t u r e l o s s _ . 67 of e a r n i n g s . As f a r as s u r v i v o r ' s b e n e f i t s are concerned, widows are e n t i t l e d t o a percentage of the b a s i c p e n s i o n , eg. up to 90 6 8 p e r c e n t of the b a s i c amount. Dependent c h i l d r e n pensions are a l s o a v a i l a b l e t o a maximum of 25 p e r c e n t of the b a s i c 69 amount i f one parent d i e s . The supplementary pension w i l l -40-p r o v i d e a widow w i t h up t o 40 p e r c e n t of the pension the deceased would have drawn, and a sum i s a l s o g i v e n out f o r 70 each dependent c h i l d , under 19 y e a r s . The n a t i o n a l i n s u r a n c e p l a n i s f i n a n c e d by income r e l a t e d assessments l e v i e d a g a i n s t i n s u r e d , t a x e s , and employer 71 c o n t r i b u t i o n s based on company s a l a r i e s . Any r e c e i p t s r e c e i v e d under the n a t i o n a l i n s u r a n c e 72 scheme are deducted from t o r t awards. In a d d i t i o n t o the t o r t system and s o c i a l i n s u r a n c e scheme t h e r e are a number of v o l u n t a r y p r i v a t e i n s u r a n c e b e n e f i t s and coverages p r o v i d e d by employers. Group and l i f e i n s u r a n c e have become very p o p u l a r and m e d i c a l i n s u r a n c e i s a l s o a v a i l a b l e t o cover gaps i n the n a t i o n a l i n s u r a n c e 73 . . program. In r e s p e c t of employer b e n e f i t s many c i v i l s e r v a n t s and o t h e r s have c o n t r a c t u a l sick-leave and d i s a b i l i t y 74 b e n e f i t s t o p r o t e c t themselves i n times of i n j u r y or death. D e s p i t e the r e p o r t e d c o n s e r v a t i s m i n t o r t awards i n r e s p e c t of monetary amounts, the use of a n n u i t i e s r a t h e r than lump sums enables the c o u r t s to a d j u s t b e n e f i t s accord-75 i n g t o the p a r t i c u l a r circumstances of the i n d i v i d u a l case, and the broad scope, and depth of the n a t i o n a l i n s u r a n c e scheme would appear to p r o v i d e the Swedish auto a c c i d e n t v i c t i m w i t h v e r y e x t e n s i v e compensation. -41-U n i t e d S t a t e s . In the U n i t e d S t a t e s t h e r e has been c o n s i d e r a b l e a c t i v i t y i n the p r o p o s i n g and e n a c t i n g of n o - f a u l t laws i n order to remedy some of the d e f e c t s which e x i s t i n the s t a t e systems of compensation f o r the t r a f f i c v i c t i m . By January 1, 1972 a number of s t a t e s w i l l have enacted v a r i o u s forms of a c c i d e n t b e n e f i t i n s u r a n c e , eg. Massachusetts, F l o r i d a , Delaware, I l l i n o i s , Oregon, and South Dakota. In a d d i t i o n to these s t a t e s , a number of o t h e r s w i l l c o n s i d e r such p r o p o s a l s i n 1972, and New York and Michigan w i l l go a step f u r t h e r , and debate the m e r i t s of a b o l i t i o n of t o r t a c t i o n s i n the case of 77 motor v e h i c l e a c c i d e n t c l a i m s . However, f o r the purposes of t h i s t h e s i s the Massachusetts and F l o r i d a laws w i l l be d i s c u s s e d because they were enacted and o p e r a t i v e b e f o r e January 1, 1972, and the a c c i d e n t b e n e f i t p r o v i s i o n s are compulsory f e a t u r e s of mandatory motor v e h i c l e p o l i c i e s , and t h i s c h a r a c t e r i s t i c d i s t i n g u i s h e s them from the l e g i s l a t i o n of most of the other s t a t e s . Massachusetts Massachusetts has been a p i o n e e r s t a t e i n the e v o l u t i o n of t r a f f i c compensation i n the U n i t e d S t a t e s . In 1927, almost t h i r t y years p r i o r t o a p r o v i s i o n i n any other s t a t e , the Massachusetts l e g i s l a t u r e made automobile l i a b i l i t y p o l i c i e s 7 8 compulsory. However i t should be noted t h a t the l i m i t s were r e a l l y q u i t e low, eg. U.S. $10,000 f o r p e r s o n a l i n j u r y -42-or death a r i s i n g out of one a c c i d e n t , u n t i l 1970 when the 79 l i m i t s were r a i s e d to U.S. $40,000. A l s o s i g n i f i c a n t i s the f a c t t h a t the i n s u r e r s are p r i v a t e i n s u r a n c e companies 80 and not the government. The compulsory i n s u r a n c e , u n t i l 1970, d i d not apply to guest passengers or p r o p e r t y damage, but these e x c e p t i o n s were i n c l u d e d i n the compulsory auto-81 mobile p o l i c y i n t h a t year. A l s o i t must be remembered t h a t Massachusetts d i d not and does not have a comparative ne-g l i g e n c e p r o v i s i o n and hence the chances of a s u c c e s s f u l t o r t c l a i m are not ve r y good, and the r e i s no t r a f f i c fund to p r o v i d e r e p a r a t i o n s i n the case o f the h i t and run, un-i n s u r e d d r i v e r , or s t o l e n c a r s i t u a t i o n s and hence th e r e was a l a r g e gap i n the automobile a c c i d e n t compensation system. To d i g r e s s f o r a moment the reader should be aware of the e x t e n t of the compensation gap as r e v e a l e d by a thorough 8 2 study performed a t the U n i v e r s i t y of Michigan. T h i s r e p o r t , which i s unique s i n c e i t i s one of the few attempts to o b t a i n data on t h i s p e r t i n e n t s u b j e c t , i s taken t o be r e p r e s e n t a t i v e of the compensation p i c t u r e i n most American s t a t e s . The study d i s c l o s e d t h a t o n l y 37 pe r c e n t of the v i c t i m s o f motor v e h i c l e a c c i d e n t s r e c e i v e d compensation from the t o r t c l a i m source, and o n l y 77 p e r c e n t of the v i c t i m s r e c e i v e d r e p a r a t i o n s 8 3 from a l l s o u r c e s . T h i s l a t t e r f i g u r e i s m i s l e a d i n g s i n c e those who were s e r i o u s l y i n j u r e d r e c e i v e d o n l y f r a c t i o n a l recompense f o r t h e i r economic l o s s , and the o v e r a l l r e c o v e r y - 4 3 -r a t e was o n l y 50 p e r c e n t of the t o t a l economic l o s s . The t o r t s e t t l e m e n t s or awards accounted f o r s l i g h t l y more than 8 5 50 p e r c e n t o f the compensation. However l i f e i n s u r a n c e , automobile c o l l i s i o n i n s u r a n c e , workmen's compensation, employer's v o l u n t a r y or c o n t r a c t u a l payments, and s o c i a l s e c u r i t y b e n e f i t s helped to r a i s e the percentage of economic 8 6 l o s s r e c o v e r y to i t s s t i l l inadequate r a t e . Consequently the low recovery r a t i o s and the h i g h c o s t of i n s u r a n c e p r e -miums encouraged the lawmakers to seek a l t e r n a t i v e s to the b a s i c t o r t system. A f t e r much debate, s t i m u l a t e d to a l a r g e e x t e n t , by 8 7 the work of Keeton and O'Connell, a n o - f a u l t p r o v i s i o n i n r e s p e c t of a c c i d e n t b e n e f i t s was enacted i n 1970, and became 8 8 e f f e c t i v e on January 1, 1971. The h i g h l i g h t s of the Act are the n o - f a u l t p r o v i s i o n s which pay a l l reasonable m e d i c a l , h o s p i t a l , and f u n e r a l c o s t s , and wage l o s s e s to a l i m i t of 89 U.S. $2,000 i f i n c u r r e d w i t h i n two years of the a c c i d e n t . An a d d i t i o n a l r e s t r i c t i o n i s t h a t the wage compensation cannot exceed 75 p e r c e n t of the v i c t i m ' s "average weekly wage f o r 90 the year p r e c e d i n g the a c c i d e n t " . Payments may a l s o be awarded f o r s e r v i c e s which were normally performed by the v i c t i m 91 on a gratuitous basis , eg. housewife c l e a n i n g the home. The c a t e g o r i e s of v i c t i m s covered by the new law i n c l u d e the i n -sured, members of h i s household, person's d r i v i n g w i t h the owner's consent, guest passengers, and p e d e s t r i a n s s t r u c k by -44-y 2 the i n s u r e d v e h i c l e . Those not e l i g i b l e f o r compensation by reason of t h e i r conduct a r e : impaired d r i v e r s under i n -f l u e n c e of a l c o h o l or drugs, d r i v e r s committing f e l o n i e s , 93 a v o i d i n g a r r e s t , and d r i v e r s i n t e n t on committing s u i c i d e . Another s i g n i f i c a n t s e c t i o n excludes r e c o v e r y f o r p a i n and s u f f e r i n g i n t o r t cases unless the v i c t i m ' s m e d i c a l expenses exceed U.S. $500 or u n l e s s t h e r e i s permanent d i s -figurement, l o s s of a body member, permanent l o s s of s i g h t 94 or h e a r i n g , or death. T h i s i s an attempt to l i m i t c o u r t awards f o r non-pecuniary damages which have become e x t r a -95 vagant. L a s t l y t h e r e i s a t o r t immunity f o r the defendant up to the l i m i t of the two-party a c c i d e n t b e n e f i t coverage, p r o v i d e d the defendant has the n o - f a u l t coverage h i m s e l f , but the i n s u r e r of the defendant i s l i a b l e f o r the f u l l award i f the defendant i s a t f a u l t , eg. the v i c t i m ' s i n s u r e r can r e c o v e r n o - f a u l t b e n e f i t s and expenses from n e g l i g e n t 96 defendant's i n s u r e r , but not from the defendant h i m s e l f . How has the p l a n worked i n p r a c t i c e ? T h i r d p a r t y b o d i l y i n j u r y c l aims dropped 25 p e r c e n t i n the f i r s t f i v e months, i n a s t a t e which has a c l a i m s r a t e 2 1/2 times the n a t i o n a l average, and s i m u l t a n e o u s l y the average c l a i m c o s t i n r e s p e c t of p e r s o n a l i n j u r y ( l i a b i l i t y and a c c i d e n t b e n e f i t insurance) d e c l i n e d from US. $205 to US $131 d u r i n g the f i r s t t h r e e months 97 of o p e r a t i o n . The scheme, assuming a c c i d e n t s have remained r e a s o n a b l y s t a b l e , must have continued to be e f f e c t i v e through--45-out 1971, because the Commissioner of Insurance ordered a c u t of over 27 p e r c e n t f o r compulsory i n s u r a n c e ( b o d i l y i n j u r y l i a b i l i t y and a c c i d e n t b e n e f i t s ) i n r e s p e c t of the 9 8 1972 p o l i c y year. In s p i t e of t h i s seemingly i m p r e s s i v e performance some c r i t i c s are not happy. The t h r e e major areas of c o n t r o v e r s y a r e : the l i m i t a t i o n on p a i n and s u f f e r i n g damages, the m o d i f i c a t i o n of work l o s s payments, and the compensation i n r e s p e c t of the n e g l i g e n t d r i v e r . The f i r s t two p o i n t s , the c r i t i c s c l a i m make compensation awards r i g i d and i n e -q u i t a b l e , and the l a t t e r p r o v i s i o n i s immoral s i n c e the com-mentators f e e l t h a t the d r i v e r should be punished f o r h i s t r a n s g r e s s i o n s and c e r t a i n l y should not be e n t i t l e d t o 99 compensation. These arguments are r a i s e d t o i n d i c a t e t o the r e a d e r t h a t the h y b r i d - n o - f a u l t and t o r t system, although i t appears to be an improvement to many i t i s not u n i v e r s a l l y accepted and, as w i l l be i n d i c a t e d l a t e r , there i s some j u s t i f i c a t i o n f o r t h i s d i s s e n t , but the reader must r e c a l l t h a t e c o n o m i c , s o c i o l o g i c a l , and p o l i t i c a l r e a l i t i e s may h i n d e r the immediate i n t r o d u c t i o n of a t h e o r e t i c a l l y sound p r o p o s a l . F l o r i d a The F l o r i d a n o - f a u l t law became e f f e c t i v e on January 1, 1972. "*"00 The major d i f f e r e n c e between t h i s enactment and i t s Massachusetts c o u n t e r p a r t i s the s i z e and scope of the -46-n o - f a u l t b e n e f i t s . The b o d i l y i n j u r y and death b e n e f i t s have a U.S. $5,000 l i m i t , and a maximum of 85 p e r c e n t o f gross income i s p e r m i t t e d under the l o s s of income, d i s -a b i l i t y b e n e f i t provision."^"'" A l s o there i s a p r o v i s i o n f o r f u n e r a l expenses up to a U.S. $1,000 l i m i t , p r o v i d i n g the 102 U.S. $5,000 g e n e r a l r e s t r i c t i o n has not been surpassed. The i n d i v i d u a l s covered by the Ac t , eg. the i n s u r e d , r e l a t i v e s r e s i d i n g i n the household, passengers, p e d e s t r i a n s s t r u c k by the i n s u r e d v e h i c l e e t c . , and the me d i c a l b e n e f i t s , eg. ambulance f e e s , d e n t a l s e r v i c e s e t c . , are s i m i l a r t o the 103 . . Massachusetts p l a n . However the F l o r i d a p r o v i s i o n s may be s l i g h t l y broader i n r e s p e c t o f medi c a l coverage s i n c e r e h a b i l i t a t i v e s e r v i c e s are s p e c i f i c a l l y mentioned i n the 104 p e r t i n e n t s e c t i o n . Other d i f f e r e n c e s between the two p i e c e s of l e g i s l a t i o n i s the i n s u r e r ' s r i g h t of s u b r o g a t i o n and the p a i n and s u f f e r i n g p r o v i s i o n s . The i n s u r e r i n F l o r i d a has a r i g h t t o the b e n e f i t s p a i d on a n o - f a u l t b a s i s to a v i c t i m , p r o v i d e d 105 he can prove t h a t the defendant i n a t o r t a c t i o n was at f a u l t , eg. no t o r t immunity f o r the defendant as i s the case i n Massachusetts. In r e s p e c t o f p a i n and s u f f e r i n g and mental anguish the v i c t i m can only r e c o v e r under t h i s head of damages i n cases o f : me d i c a l expenses exceeding U.S. $1,000, permanent impairment, permanent d i s f i g u r e m e n t , l o s s of a body member, a f r a c t u r e of a weight b e a r i n g member, or d e a t h . H e n c e the -47-r i g h t t o such damages i s even more r e s t r i c t e d than under the Massachusetts p r o v i s i o n . Two other important f e a t u r e s of the F l o r i d a Act are t h a t i n s u r a n c e or other forms of s e c u r i t y c o v e r i n g b o d i l y i n j u r y l i a b i l i t y and a c c i d e n t i n s u r a n c e i s compulsory, and 107 i n s u r a n c e premiums must be reduced by 15 p e r c e n t f o r . 1972. The F l o r i d a law r e p r e s e n t s some improvement over the Massachusetts l e g i s l a t i o n , b a s i c a l l y because of the h i g h e r l i m i t s on a c c i d e n t b e n e f i t s . A l s o i t q u i t e p r o b a b l y i s a s i g n of the i n c r e a s i n g r o l e t h a t n o - f a u l t i n s u r a n c e w i l l p l a y i n motor v e h i c l e a c c i d e n t compensation i n the immediate The most p r o g r e s s i v e automobile i n s u r a n c e scheme i n the U n i t e d S t a t e s e x i s t s i n the s t a t e of Delaware where the compulsory minimum n o - f a u l t b e n e f i t p e r t a i n i n g to l o s s of income,medical and r e h a b i l i t a t i o n expenses e t c . , i s U.S. $10,000 f o r an i n d i v i d u a l t r a f f i c v i c t i m , and d i s s i m i l a r to any o t h e r c u r r e n t North American p l a n the d r i v e r has an o p t i o n to purchase a d d i t i o n a l n o - f a u l t i n s u r a n c e to whatever l i m i t he d e s i r e s . Canada. The development of t r a f f i c v i c t i m compensation i n nine of the Canadian p r o v i n c e s , p r i o r t o the r e l e a s e of the Wootton -48-Report, i s s i m i l a r t o t h a t s e t out i n 'the second chapter of t h i s t h e s i s . The b a s i s f o r compensation was t o r t s u i t s and v a r i o u s gap f i l l i n g measures, eg. T r a f f i c V i c t i m I n -demnity Funds and comparative n e g l i g e n c e p r o v i s i o n s , became standard a c r o s s Canada. The e x c e p t i o n was the p r o v i n c e of Saskatchewan and i t s scheme has had a profound i n f l u e n c e on the p r e s e n t laws of a l l the Canadian p r o v i n c e s and l e g i s l -a t i o n o u t s i d e the country as w e l l . By 1970 a l l Canadian p r o v i n c e s had v o l u n t a r y or compulsory a c c i d e n t b e n e f i t schemes. In t h i s t h e s i s we w i l l c o n f i n e our a t t e n t i o n t o Sas-katchewan, Manitoba, O n t a r i o , and B r i t i s h Columbia s i n c e these p r o v i n c e s c u r r e n t l y have compulsory a c c i d e n t b e n e f i t p r o v i s i o n s i n t h e i r automobile p o l i c i e s . In t h i s chapter we w i l l review the Saskatchewan and O n t a r i o laws s i n c e the former r e p r e s e n t s the o r i g i n a l scheme and the l a t t e r the most ' advanced. The Manitoba l e g i s l a t i o n w i l l be mentioned only b r i e f l y s i n c e i t i s almost i d e n t i c a l to the Saskatchewan p l a n , and the B r i t i s h Columbia approach w i l l be d i s c u s s e d i n d e t a i l i n the next chapter. Saskatchewan In 1946 the Saskatchewan Automobile Insurance Act was i n t r o d u c e d and i t s major and r e v o l u t i o n a r y f e a t u r e was the compulsory n o - f a u l t a c c i d e n t b e n e f i t form of compensation. *'*"<"> The a c c i d e n t b e n e f i t s f e l l i n t o f o u r c a t e g o r i e s ; s u r v i v o r -49-payments, l o s s of income compensation, d i s a b i l i t y r e p a r a t i o n s , and o u t - o f - p o c k e t recompense. The s u r v i v o r o r death b e n e f i t s p r o v i d e up t o $10,000 ? eg. $5,000 f o r the primary dependent, g e n e r a l l y the w i f e of the i n s u r e d , p l u s $1,000 f o r secondary dependents, c h i l -dren, up t o a maximum of $5,000 i n the case of demise of the head of the household who earns the f a m i l y ' s income.'''"''^ I f a w i f e s h o u l d be k i l l e d i n an auto a c c i d e n t and she i s not the wage ea r n e r , than the husband i s e n t i t l e d t o $2,000 or i f a c h i l d s hould d i e i n a car mishap then p r o v i d e d the c h i l d i s l i v i n g w i t h h i s parents and under 18 years the par e n t s are e l i g i b l e f o r an award on a graduated s c a l e 112 depending on age, up to a maximum of $1,000. B a s i c a l l y t h i s s e c t i o n p r o v i d e s s u r v i v o r s w i t h compensation f o r l o s s of a bread winner's income and the b e n e f i t s due on the death of a w i f e and c h i l d are g i v e n p a r t i a l l y t o cover expenses f o r m e r l y p r o v i d e d f r e e of c o s t by the housewife, and a l s o as a h e a r t balm. These b e n e f i t s are only payable i f . t h e death occurs w i t h i n n i n e t y days of the t r a f f i c a c c i d e n t , or w i t h i n two years of the mishap i f the v i c t i m has been t o t a l l y 113 and c o n t i n u o u s l y d i s a b l e d s i n c e t h a t event. A l s o the p l a n 114 covers f u n e r a l expenses up to $300. I f the head o f the household i s a v i c t i m of a t r a f f i c a c c i d e n t and d i s a b l e d he i s e n t i t l e d t o a weekly indemnity up t o $25 per week i f he i s t o t a l l y d i s a b l e d , o r up to $12.50 a week i f he i s p a r t i a l l y -50-115 d i s a b l e d f o r a maximum of two y e a r s . A housewife can r e c o v e r s i m i l a r i n d e m n i t i e s f o r s i m i l a r i n j u r i e s , but only 116 f o r a maximum of twelve weeks. A l s o i t should be noted 117 t h a t these b e n e f i t s are o n l y payable a f t e r the f i r s t week, presumably t o a v o i d minor and/or f r a u d u l e n t c l a i m s . Again t h i s s e c t i o n i s aimed at income replacement. In a d d i t i o n t o the l o s s of income b e n e f i t s there i s a d i s a b i l i t y payment which covers such permanent d i s a b i l i t i e s as eye and h e a r i n g impairments, amputations, d i s f i g u r e m e n t s 118 e t c . The maximum award i s $4,000 and the measurement of 119 damage i s c a l c u l a t e d by means of a schedule. A l s o the v i c t i m i s e n t i t l e d to a supplementary b e n e f i t up t o a $2,000 l i m i t f o r o u t - o f - p o c k e t expenses not otherwise 120 reimbursed. I t should be noted t h a t a l l these b e n e f i t s may be cumulated i n the a p p r o p r i a t e s i t u a t i o n . In a d d i t i o n t o these n o - f a u l t b e n e f i t s which the Sas-katchewan motor v e h i c l e owner or d r i v e r i s r e q u i r e d to purchase, he i s a l s o o b l i g a t e d t o buy two p a r t y c o l l i s i o n coverage, eg. p r o p e r t y damage t o h i s own c a r , and t h i r d p a r t y l i a b i l i t y coverage p e r t a i n i n g to b o d i l y i n j u r y and p r o p e r t y damage to 121 a minimum of $35,000. T h e r e f o r e the Saskatchewan scheme i s the h y b r i d of no-f a u l t and t o r t which has been c o p i e d i n Massachusetts and F l o r i d a as we have j u s t observed, but the n o - f a u l t b e n e f i t s are more generous. A l s o i t i s noteworthy t h a t u n l i k e the -51-Massachusetts and F l o r i d e plans the i n s u r e r does not proceed a g a i n s t a defendant i n order t o r e c o v e r b e n e f i t s p a i d to a 122 v i c t i m under the n o - f a u l t p r o v i s i o n s . The p l a i n t i f f i s at l i b e r t y , t o t r y and r e c o v e r damages i n t o r t , but the award w i l l be reduced by the amounts he has r e c e i v e d under the no-. . 123 f a u l t p r o v i s i o n s . There are c e r t a i n r e s t r i c t i o n s on the e l i g i b i l i t y f o r a c c i d e n t i n s u r a n c e b e n e f i t s . In some circumstances such as a v i c t i m p a r t i c i p a t i n g i n a race or speed t e s t o r r i d i n g i n a s t r e e t c a r or t r o l l e y bus th e r e i s no r i g h t t o a c c i d e n t 12 4 b e n e f i t compensation. Where as a person who i s i n j u r e d or k i l l e d ; w h i l e r i d i n g i n an u n r e g i s t e r e d v e h i c l e , w h i l e d r i v i n g w i t h an e x p i r e d l i c e n c e , or w h i l e under the i n f l u e n c e of drugs or a l c o h o l , i s d i s q u a l i f i e d from r e c e i v i n g b e n e f i t s 125 un l e s s he i s k i l l e d or permanently i n c a p a c i t a t e d . The theory here would appear t o be to r e f u s e compensation except i n s i t u a t i o n s i n which the s u r v i v o r s , who are i n n o c e n t , would s u f f e r d i r e consequences, eg. permanent l o s s o f earnings of the breadwinner. In the h i t and run or s t o l e n car s i t u a t i o n the i n s u r e r becomes the nominal defendant so recover y can be gained f o r b o d i l y i n j u r y only up t o the $35,000 l i a b i l i t y i n s u r a n c e 126 maximum. The most s i g n i f i c a n t aspect of the scheme has not y e t been d i v u l g e d . The i n s u r e r f o r a l l b a s i c compulsory i n s u r a n c e - 5 2 -t o the r e q u i r e d minimum l i m i t s i s the government, the Sas-katchewan Government Insurance O f f i c e . P r i v a t e i n s u r e r s are allowed to compete w i t h the government f o r extended p o l i c i e s which cover b e n e f i t s beyond the s t a t u t o r y minimums and a p p a r e n t l y i n r e s p e c t of 50 p e r c e n t of such p o l i c i e s the r e s i d e n t s of Saskatchewan chose to purchase s e c u r i t y from 127 . . p r i v a t e i n s u r a n c e companies. By way of comparison i n Manitoba the government i s the s o l e s e l l e r of automobile 12 8 i n s u r a n c e . The data on the c o s t of i n s u r a n c e premiums and the h a n d l i n g of n o - f a u l t claims i s q u i t e i n t e r e s t i n g . The owner's premium f o r motor v e h i c l e i n s u r a n c e i s based only on the wheel base 129 of the c a r and i t s model year. The d r i v e r ' s premium, i s o n l y $3 i f he has not been c o n v i c t e d of any t r a f f i c or c r i m i n a l 130 . . o f f e n c e s , eg. a demerit p o i n t system. There are a d d i t i o n a l surcharges i f the d r i v e r i s under 25 y e a r s , or i f he has been 131 at f a u l t i n an a c c i d e n t . As f a r as the e f f e c t i v e n e s s of the p l a n i s concerned, over the l a s t t w e n t y - f i v e y ears the l o s s r a t i o on net premiums 132 w r i t t e n has ranged from 83-87 per cent. A l s o d e l a y s have been kept to a minimum, eg. death b e n e f i t claims were r e p o r t e d l y p a i d i n s i x t o e i g h t weeks, and lawyers were i n v o l v e d i n o n l y 133 2 p e r c e n t of the n o - f a u l t c l a i m s . The main c r i t i c i s m s of the Saskatchewan system r e v o l v e around the r i g i d i t y and m i s e r l y e x t e n t of the n o - f a u l t awards, -53-and the governmental p a r t i c i p a t i o n i n the scheme. In a d d i t i o n the c r i t i c s p o i n t to the f a c t t h a t Saskatchewan i s a r u r a l area w i t h a low motor v e h i c l e d e n s i t y , and t h e r e f o r e i t s r e s u l t s i n r e s p e c t of i n f r e q u e n t lawyer involvement, and low a c c i d e n t e x p e r i e n c e , eg. c o n t r i b u t i n g to lower premiums, are 134 not comparable to other j u r i s d i c t i o n s . O n t a r i o The O n t a r i o scheme i s unique i n r e s p e c t of both the a c c i d e n t b e n e f i t and l i a b i l i t y p r o v i s i o n s of the motor v e h i c l e p o l i c y . The O n t a r i o m o t o r i s t i s not r e q u i r e d to purchase l i a b i l i t y coverage, but i f he f a i l s to do so, then he i s compelled to pay $25 t o the Motor V e h i c l e A c c i d e n t Claims Fund, but he 135 r e c e i v e s no i n s u r a n c e p r o t e c t i o n . Hence he i s encouraged to purchase l i a b i l i t y i n s u r a n c e , and i f he does, such a p o l i c y 136 must i n c l u d e a c c i d e n t b e n e f i t p r o v i s i o n s . T h i s p l a n became 137 o p e r a t i v e on January 1, 19 72. The O n t a r i o scheme i s s i g n i f i c a n t l y d i f f e r e n t from the Saskatchewan and Manitoba plans which are s i m i l a r i n almost 13 8 every r e s p e c t . Motor v e h i c l e i n s u r a n c e remains i n the hands 139 of p r i v a t e i n s u r e r s . A l s o important d i s t i n c t i o n s between the O n t a r i o and Saskatchewan plans are e v i d e n t i n r e s p e c t of r e h a b i l i t a t i o n b e n e f i t s , coverage f o r unpaid housekeepers, and c o l l i s i o n i n s u r a n c e . The O n t a r i o approach p r o v i d e s up to 140 $5,000 per v i c t i m f o r m e d i c a l and r e h a b i l i t a t i o n b e n e f i t s , -54-and s i n c e most of the medical coverage would be s u p p l i e d by the f e d e r a l M e d i c a l Care p l a n , almost a l l of t h a t sum, i n most cases, c o u l d be used f o r r e h a b i l i t a t i o n expenses. 141 However th e r e i s a f o u r year l i m i t a t i o n on such o u t l a y s . In r e l a t i o n to the unpaid housekeeper, eg. housewife, $35 142 a week i s a v a i l a b l e f o r a maximum of twelve weeks. In the Saskatchewan and Manitoba schemes a s i m i l a r sum, eg. $25 i s made a v a i l a b l e to a housewife, and the o n l y r e a l change i s t h a t the purpose of the payment i s r e v e a l e d . Another n o t a b l e d i f f e r e n c e i s the c o l l i s i o n coverage which i s v o l u n t a r y i n 143 O n t a r i o , but compulsory i n Saskatchewan and Manitoba. In r e s p e c t of l i a b i l i t y i n s u r a n c e , O n t a r i o as forementioned has a q u a s i - v o l u n t a r y scheme, w h i l e Saskatchewan and Manitoba have compulsory schemes but the l i m i t s i n O n t a r i o and Manitoba 144 are'$50,000 as compared w i t h $35,000 i n Saskatchewan. L a s t l y u n l i k e the Saskatchewan and Manitoba p l a n s , the O n t a r i o scheme does not c o n t a i n dismemberment b e n e f i t s , but the l o s s of income and death b e n e f i t s are the most generous of any p r o v i n c i a l scheme, eg. up to $70 weekly f o r l i f e f o r permanent d i s a b i l i t y which causes t o t a l l o s s of income, no l i m i t on $1,000 a v a i l a b l e t o each dependent c h i l d i n f a t a l a c c i d e n t cases, and l a s t l y 145 there i s no w a i t i n g p e r i o d i n r e s p e c t of a c c i d e n t b e n e f i t s . In summary (see Schedule I f o r a comparison of the d i f f e r e n t p l a n s ) , the O n t a r i o scheme r e p r e s e n t s an improvement over the Saskatchewan p l a n i n r e s p e c t of the scope and completness of Schedule I -55-How Canadian Auto Insurance Plans Compare Typo of Coverage Ontario (Present Plan) Ontario (New Plan) Br i t i sh Columbia Saskatchewan Manitoba Nov. 1, 1371 Basis for Coverage (No-Fault) Optional Mandatory Compulsory Compulsory Compulsory D isab i l i t y Income Benef i ts $35 per week 104 weeks temporary + 104 weeks permanent 8 0 % of Wages (Max. $70 weekly) L i fe t ime Employed Person 8 0 % Gross Wages " (Max. $50 week ly ; M i n . $40 weekly) 104 weeks temporary + l i fe t ime—tota l & permanent Employed Person $25 per week (104 weeks to ta l ; 104 weeks part ial @ 12.50) Employed Person $50 per week (Li fet ime) 7-day wai t ing period Fi rst day cover 7-day wa i t ing period 7-day wai t ing period 7-day wai t ing period Contr ibutory Non-contr ibutory 1st 14 days Contr ibutory Contr ibutory Contr ibutory Housewife $12.50 per week (Max. 12 weeks) Unpaid housekeeper $35 per week (Max. 12 weeks) Housewife $50 per week (Max. 26 weeks) Housewife $25 week ly—tota l $12.50 week ly—par t ia l (Max. 12 weeks) Hospi ta l ized $12.50 for 52 weeks Housewife $25 week ly—tota l $12.50 week ly—par t ia l (Max. 12 weeks) Death Benef i ts Var ious—but $5000 usual $5000 $5000 $5000 $5000 (Death wi th in 3 months (Death w i th in 2 years (Death wi th in 6 months (Death wi th in 2 years (Death w i th in 2 years a f ter accident) a f ter accident) af ter accident) a f ter accident) af ter accident) Mar r ied Male Head of Household Head of Household Head of Household Head of Household Age l im i t s ; Age l im i t s : none Age l im i t s : Age l im i t s : none Age l im i t s : none 10-59 — $5000 Plus 10-64 — $5000 Plus Plus 60-69 — 30C0 $1000 each dependent be- 65-69 — 3000 $1000 each secondary de- $1000 each secondary de-70 + 2000 yond f irst 70 + • 2000 pendent to l imi t of 5 pendent Plus No l imi t P lus to l im i t of 5 $1000 each dependent $1000 each dependent be-ch i ld yond first No l im i t No l im i t Mar r ied Female Spouse Spouse Spouse Spouse Age i i m i i : No age i i m i i : Age i imi i . : No age i i m i i : No age i i m i i : 10-59 — $2500 $2500 10-64 — $2500 $2000 $2000 60-69 — 1500 65-69 — 1500 Equal d iv is ion to surviv- Equal d iv is ion to 70 + 70 + 1000' ing dependents surv iv ing dependents Unmarr ied Person Dependent Chi ld Dependent Ch i ld Dependent Chi ld Dependent Chi ld with l i v ing parents Scale by age Scale by age Scale by age Scale by age Scale by age (Maximum $1000) (Maximum $1500) (Maximum $1000) (Maximum $1000) (Maximum $2500) Dismemberment Benef i ts Schedule based on 1% Not inc luded as sched- Not inc luded Scheduled benefits Scheduled benefits of pr inc ipa l sum ule. Becomes part of (Maximum $4000) (Maximum $6000) other recovery but deducted from death benefi ts Med i ca l Payments $2000 per person other $5000 per person inc lud- Bodi ly injury $2000 per person d isc re- $2000 per person as ex-Benef i ts than Ontario Hosp i ta l , ing rehabi l i ta t ion pol icy l im i ts t ionary to meet expenses cess over any other cover Ontario Med ica l for a i l injured except auto insurance persons excludes government medical and hospital (Time l im i t ; 2 years) (Time l im i t : 4 years) plans Funeral Expense Benefi ts $500 maximum. $500 maximum $500 maximum $300 maximum $500 maximum Damage to own car Optional Optional Optional Compulsory Compulsory (co l l i s ion & ($200 deducted for a l l ($200 deducted for a l l comprehensive) losses) losses) (no-fault insurance) (Publ ic L iab i l i t y F. Min imum $50,000 Min imum $50,000 Min imum $50,000 Min imum $35,000 Min imum $50,000 Property Damage) Optional ($25 to Motor Optional ($25 to Motor Fault Pro tec t ion Veh ic le Acc ident C la ims Vehic le Acc ident C la ims Compulsory Compulsory Compulsory Fund but no ins . pro- Fund but na ins . protec-tect ion) tion) Admin is t ra t ion By : Pr ivate Insurers Pr ivate Insurers Private Insurers Basic Insurance (For excess—government and private insurers compete) Government monopoly Prepared by Ontario Insurance Agents Assoc ia t ion August, 1371 Source: Best's Review, P r o p e r t y and L i a b i l i t y Aug. 1971, p. 57. 5 ? -56-benefits and again i s i n d i c a t i v e of the growing trend toward no-f a u l t as compared with t o r t compensation i n the t r a f f i c accident area. New Zealand The l e g i s l a t i o n of New Zealand, pertaining to the motor vehicle i s not r e a l l y unique i f one adheres to the a r b i t r a r y cut-off date of January 1, 19 72. Compulsory insurance was i n -146 troduced i n 1928, but aside from t h i s provision the New Zealand system i s s i m i l a r to those i n other common law ju-r i s d i c t i o n s . However within the next few months, i t appears that the New Zealand Parliament w i l l adopt a pure no-fault scheme to cover loss of income^medical)and r e h a b i l i t a t i o n ex-penses, and non-pecuniary losses for a l l accidents involving; employed personnel, whether at work or not, and a l l t r a f f i c 147 victims, whether employed or not. A B i l l was introduced on December 15, 1971 and recommended the a b o l i t i o n of t o r t 148 action i n respect of the forementioned accidents. The scheme would provide an indemnity of 80 percent of l o s t earn-ing capacity to a maximum of N.Z. $160 (C$200) per week i n the event of death or d i s a b i l i t y , and the award would be 149 automatically increased as wage level s r i s e . In addition there would be payments of lump sums for loss of parts of the body to a maximum of N.Z. $5,00 0, and further benefits to a l i m i t of N.Z. $7,000 i n respect of loss of enjoyment of l i f e -57-and o t h e r economic l o s s e s . The A c c i d e n t Compensation Commission,an independent governmental a u t h o r i t y , w o u l d be c r e a t e d t o a d m i n i s t e r the s c h e m e . 1 5 1 Finances p e r t a i n i n g t o road a c c i d e n t s would be d e r i v e d from annual charges on auto-152 mobile r e g i s t r a t i o n s and d r i v e r ' s l i c e n c e s . T h i s b r i e f d e s c r i p t i o n of the proposed New Zealand approach i s e n l i g h t e n i n g because the apparent adoption of the no f a u l t system has f o r c e d the government to study a l l the e s s e n t i a l f e a t u r e s of such a system, eg. f i n a n c i n g and appeal procedures e t c . and t h i s s u p p l i e s the student of motor - v e h i c l e compensation i n other c o u n t r i e s w i t h p r a c t i c a l g u i d e l i n e s i n r e s p e c t of a s i m i l a r scheme i n a d i f f e r e n t j u r i s d i c t i o n . Summary The systems of motor v e h i c l e compensation i n the d i f f e r e n t c o u n t r i e s , we have reviewed, i n d i c a t e s t h a t t h e r e are many a l t e r n a t i v e s t o the problem, but i n the l a s t f i v e years t h e r e has been a d e f i n i t e t r e n d toward n o - f a u l t i n s u r a n c e . T h i s p a t t e r n i t i s suggested has o c c u r r e d and w i l l c ontinue t o occur, t o a g r e a t e r degree, because of the r e a l i z a t i o n by governments and the p u b l i c t h a t the c o s t - b e n e f i t t r a d e - o f f under the t o r t system i s i n e f f i c i e n t , and a p r a c t i c a l ^ m o r e e f f i c i e n t system has been developed - the n o - f a u l t method of compensation. CHAPTER IV THE WOOTTON COMMISSION REPORT AND THE  CURRENT BRITISH COLUMBIA LAW I n t r o d u c t i o n On January 25, 1966 the government of B r i t i s h Columbia appointed the Wootton Commission. 1 The Commissioners were i n s t r u c t e d to i n q u i r e i n t o a l l matters p e r t a i n i n g to the in s u r a n c e of motor v e h i c l e s and the compensation of t r a f f i c 2 . . a c c i d e n t v i c t i m s . In p a r t i c u l a r they were t o i n v e s t i g a t e the e x i s t i n g s t a t u s of a number of r e l e v a n t aspects of the motor v e h i c l e i n s u r a n c e and compensation system and make pr o p o s a l s to a m e l i o r a t e the d e f i c i e n c i e s which were r e v e a l e d by the study: a) the c o s t s and delays o f the t o r t system, b) the p r o p o r t i o n and adequacy of automobile compensation i n r e l a t i o n to economic l o s s , c) the a p p r o p r i a t e n e s s of the c o s t of in s u r a n c e i n l i g h t o f i t s b e n e f i t s , d) the r o l e of the T r a f f i c V i c t i m s Indemnity Fund, e) the p o s s i b l e changes i n motor v e h i c l e i n s u r a n c e n e c e s s i t a t e d by the i n t r o d u c t i o n of c e r t a i n s o c i a l i n s u r a n c e p l a n s , eg. me d i c a l care scheme, f) the j u s t i f i c a t i o n of i n c r e a s e s i n automobile i n s u r a n c e premiums, g) the comparison of the e f f e c t i v e n e s s o f the t o r t compensation system w i t h a p a r t i a l or t o t a l no-f a u l t approach, -59-h) the r o l e which the government should p l a y i n the in s u r a n c e p l a n , and i ) the p r a c t i c a l measures which would have t o be taken i n order t o e f f e c t i v e l y implement any of recommended changes. The scope of the Report i s s e t out i n some d e t a i l i n order t o p r o v i d e the reader w i t h an understanding of the v a r i o u s component p a r t s o f any motor v e h i c l e compensation system. These p i e c e s must be f i t t e d t o g e t h e r l i k e a j i g saw p u z z l e i n such a manner t h a t the comprehensive scheme i s as e f f i -c i e n t and e f f e c t i v e as p o s s i b l e . However as we s h a l l d i s c o v e r , p r a c t i c a l c o n s t r a i n t s p r e c l u d e the implementation of an ec o n o m i c a l l y o p t i m a l s o l u t i o n . In t h i s chapter the major recommendations of the Wootton Commission w i l l be reviewed and the w r i t e r w i l l attempt to i n d i c a t e the f a t e of these p r o p o s a l s as manifested by govern-mental a c t i o n or i n a c t i o n i n the form of l e g i s l a t i o n , eg. amendments t o ac t s or r e g u l a t i o n s . Three Acts were most d i r e c t l y a f f e c t e d by the Report of the Commissioners which 4 was r e l e a s e d i n 1968. They were the Insurance Act, the Motor Vehicle Act/* and the Contributory Negligence Act. ^  A l s o the r e g u l a t i o n s pursuant to the f i r s t two Acts c o n t a i n some very s i g n i f i c a n t p r o v i s i o n s . At a l a t e r stage i n t h i s t h e s i s the p r a c t i c a l e f f e c t s of the l e g i s l a t i o n i n r e s p e c t o f the shortcomings of the t o r t system w i l l be d i s c u s s e d , and i f p o s s i b l e , the w r i t e r w i l l attempt to determine, to what degree - 6 0 -th e present l e g i s l a t i o n ' has remedied the defects which were disclosed by the Wootton Commission. The writer w i l l develop the comparison between the Re-port proposals and the current law by f i r s t o u t l i n i n g the basic compensation system and l a t e r f i l l i n g i n the important d e t a i l s . This approach has been adopted because s p e c i f i c s are only meaningful when they are viewed i n the context of the general framework. On the other hand the revelation of the bare skeleton of the scheme w i l l not allow the reader to gain i n s i g h t into the nuances which often determine the success or f a i l u r e of a system i n a p r a c t i c a l environment, where no case can be ignored. Wootton Commission Recommendations The reparation system which the Wootton Commission re-7 commended was- founded on the concept of s e l f - i n s u r a n c e . Every driver would be obliged to purchase a basic two-party accident p o l i c y to cover himself and other possible road accident victims i n respect of t o t a l d i s a b i l i t y or death, and he could, on a voluntary basis, buy c o l l i s i o n insurance to indemnify himself for damage to his own v e h i c l e , and/or a supplementary p o l i c y to provide compensation i n excess of the basic accident p o l i c y l i m i t s or under other "heads" (categories) of damages i n respect g of bodily injury or death. The cornerstone of the proposed scheme, however, was the a b o l i t i o n of the t o r t action pertaining -61-to motor v e h i c l e a c c i d e n t s . Consequently the amount of compensation, i f such a p l a n were implemented, would depend e n t i r e l y on the b e n e f i t s a v a i l a b l e under the compulsory b a s i c a c c i d e n t p o l i c y , the supplementary and c o l l i s i o n i n s u r a n c e c o n t r a c t s , and such other n o n - t o r t r e p a r a t i o n sources as the M e d i c a l Care and Canada Pension P l a n s . The reasons g i v e n by the Commissioners f o r the adoption of the envisaged scheme were the h i g h c o s t s , the unnecessary d e l a y s , and the uncer-t a i n t y of compensation which were i n h e r e n t f e a t u r e s of the t o r t r e p a r a t i o n system. L e g i s l a t i o n What was the response of the B r i t i s h Columbia government to t h i s p r o p o s a l ? On January 1, 1970, the overwhelming m a j o r i t y of the 1969 amendments, t o the forementioned A c t s , became e f f e c t i v e , and the r e s u l t was, i n essence, a compromise bet -ween the e x i s t i n g pure t o r t r e p a r a t i o n system and the t o t a l , n o - f a u l t scheme recommended by the Wootton Commission. L i m i t e d a c c i d e n t b e n e f i t i n s u r a n c e was i n c l u d e d i n the (now) compulsory motor v e h i c l e p o l i c y , a long w i t h t h i r d p a r t y l i a b i l i t y coverage p e r t a i n i n g to b o d i l y i n j u r y and p r o p e r t y damage, but c o l l i s i o n and comprehensive i n s u r a n c e remained as a v o l u n t a r y supplement to the mandatory p r o v i s i o n s of the policy."*'"'" I t should be noted, f o r the sake of accuracy, t h a t the r e l e v a n t s e c t i o n s of -62-the Motor Vehicle Act do not r e q u i r e the owners and d r i v e r s to purchase automobile i n s u r a n c e , but i f they do not then they 12 must h o l d a f i n a n c i a l s e c u r i t y c a r d . T h i s card i s i s s u e d by the Department of Insurance to i n d i v i d u a l s who p o s t a bond or d e p o s i t cash or s e c u r i t i e s to the e x t e n t of the minimum l i m i t s 13 imposed by law, eg. $50,000 i n r e s p e c t of t h i r d p a r t y l i a b i l i t y 14 coverage. I f the v i c t i m of a motor v e h i c l e a c c i d e n t s u f f e r s damages which surpass the b e n e f i t s a v a i l a b l e under the a c c i d e n t b e n e f i t p o r t i o n of the p o l i c y , he s t i l l r e t a i n s the r i g h t to sue any blameworthy p a r t y i n t o r t , and hence t h i s i s the reason f o r the compulsory l i a b i l i t y p o r t i o n of the automobile i n s u r a n c e package. A p r o v i s i o n of the Insurance Act p r o v i d e s t h a t the n o - f a u l t b e n e f i t s , which are p a i d by an i n s u r e r to an i n s u r e d , r e l e a s e any t o r t defendant and h i s i n s u r e r , t o the e x t e n t of 15 such r e p a r a t i o n s , i f the defendant i s i n s u r e d . But a p p a r e n t l y t h i s has not always been the case i n p r a c t i c e , because of para-l e g a l manoeuvering, eg. a c c i d e n t b e n e f i t s are handed out i n the form of loans so t h a t i f a t o r t s e t t l e m e n t i s reached, then the v, • 4- 16 i n s u r e r can r e c o v e r h i s payments. A l s o the Insurance Act, s t a t e s t h a t t h e r e i s to be a 17 $250 l i m i t a t i o n on t o r t r e c o v e r y f o r p r o p e r t y damage. T h i s s e c t i o n was not p r o c l a i m e d because of o p p o s i t i o n from the i n -surance agents, the law p r o f e s s i o n , the S u p e r i n t e n d e n t of 18 Insurance, and the Consumers A s s o c i a t i o n of Canada. -63-The motor v e h i c l e a c c i d e n t v i c t i m , p r o v i d e d he i s i n s u r e d , has access to c e r t a i n l i m i t e d b e n e f i t s . These i n c l u d e t o t a l d i s a b i l i t y , death, m e d i c a l , r e h a b i l i t a t i o n and f u n e r a l expense coverages which are a v a i l a b l e on a n o - f a u l t 19 b a s i s . In 1969 t h i s p l a n would appear t o have been a p r a c t i c a l compromise between the c o n v e n t i o n a l pure t o r t scheme and the pure n o - f a u l t approach suggested by the Wootton Commis-s i o n . E s p e c i a l l y s i n c e the Report i n d i c a t e d t h a t the s e r i o u s i n j u r y and death cases demanded re m e d i a l a c t i o n , supra p.8. D e t a i l e d Comparison o f Wootton Commission and L e g i s l a t i o n As we b e g i n our d i s c u s s i o n of the d e t a i l s of the Wootton Commission's recommendations and the p r e s e n t l e g i s l a t i o n , one i s s u e was and s t i l l i s the s u b j e c t of a c o n t r o v e r s y , the r o l e of the government i n a motor v e h i c l e i n s u r a n c e scheme. The Commissioners recommended and the Insurance Act p r o v i d e s t h a t the government v i a i t s d e l e g a t e d agency, the Automobile Insurance Board, ( h e r e i n a f t e r r e f e r r e d to as the Board), s h a l l a c t as a watchdog i n r e s p e c t of automobile i n s u r a n c e , eg. premium i n -c r e a s e s , a v a i l a b i l i t y of i n s u r a n c e at a reasonable c o s t to a l l persons i n c l u d i n g bad r i s k s , e t c . , but p r i v a t e companies w i l l r e t a i n t h e i r monopoly as e x c l u s i v e s e l l e r s of motor v e h i c l e 20 i n s u r a n c e . However i n o r d e r to possess some leve r a g e v i s -a - v i s the i n s u r a n c e i n d u s t r y , the Report and the Insurance Act would have gi v e n and g i v e , r e s p e c t i v e l y , the government the r i g h t t o become i n v o l v e d i n the marketing of c a r i n s u r a n c e i f the p r i v a t e s e c t o r cannot or w i l l not f u r n i s h motor v e h i c l e p o l i c i e s to those deemed e l i g i b l e , o r i f they cannot or w i l l 21 not m a i n t a i n the premiums at a f a i r l e v e l . By means o f the a u t h o r i t y g r a n t e d by a s e c t i o n of the Insurance Act3 the Lieutenant-Governor i n C o u n c i l may e s t a b l i s h a fund "to p r o v i d e a l l or p a r t of the motor v e h i c l e l i a b i l i t y i n s u r a n c e p r e s c r i b e d 22 under... t h i s A c t . " To date t h i s p r o v i s i o n has not been p r o c l a i m e d , but the p o s s i b i l i t y of such a c t i o n presumably i s of c o n s i d e r a b l e concern to the i n s u r a n c e I n d u s t r y . T h i s seems to be an a p p r o p r i a t e j u n c t u r e to review the o p e r a t i o n s of the Board. Although the s e c t i o n g i v i n g the government the a u t h o r i t y to e s t a b l i s h the Board was p r o c l a i m e d i n f o r c e as of January 1, 1970, i t was not u n t i l January 26, 1971 23 t h a t the c o n s t i t u t e n t members were appointed. Q u i t e l i k e l y t h i s d e l a y was designed to p r o v i d e the Insurance I n d u s t r y w i t h an o p p o r t u n i t y to show i t s r e a c t i o n to the new l e g i s l a t i o n , and when the i n d u s t r y f a i l e d t o be cowed, as evidenced by the proposed and l a t e r imposed l i a b i l i t y i n s u r a n c e r a t e i n c r e a s e s i n 1971, the government attempted to put some t e e t h i n t o the new p r o v i s i o n s . The d u t i e s and powers of the Board are , i n g e n e r a l , s i m i l a r t o those recommended by the Wootton Commission, eg. to i n v e s t i g a t e r a t e s , b e n e f i t s , c o s t s ; t o a d m i n i s t e r moneys p a i d t o the Board f o r t r a f f i c and road s a f e t y r e s e a r c h ; t o c o r r e l a t e s t a t i s t i c a l data; to e s t a b l i s h the maximum premiums each year; and t o make recommendations concerning the a d v i s -i b i l i t y of governmental p a r t i c i p a t i o n i n the automobile i n -24 . . surance f i e l d . In two r e s p e c t s , the Insurance Act p r o v i s i o n s d i f f e r from the Report p r o p o s a l s . F i r s t l y the Board as of t h i s date has not been g i v e n the power to review i n s u r e d ' s complaints i n r e s p e c t of n o - f a u l t payments as was suggested by the Wootton 25 Commission, and hence presumably, the v i c t i m ' s o n l y r e c o u r s e i s t o take h i s d i s p u t e to the c o u r t s . I t i s a l s o s i g n i f i c a n t t h a t the Report proposed t h a t the d e c i s i o n of the Board i n such 26 a matter would be f i n a l , eg. no r i g h t of appeal to the c o u r t s . The f a i l u r e t o gr a n t the Board such a u t h o r i t y , eg. to hear c l a i m a n t ' s d i s s a t i s f a c t i o n , i s most p e c u l i a r s i n c e i t holds h e a r i n g s i n r e s p e c t o f g e n e r a l automobile i n s u r a n c e r a t e s , and 27 i n r e g a r d to surcharges l e v i e d on assign e d r i s k p l a n d r i v e r s . Secondly the Wootton Commission recommended t h a t n e i t h e r the B r i t i s h Columbia Superintendent of Motor V e h i c l e s nor the Superintendent of Insurance should be named to the Board, y e t 2 8 i n f a c t the l a t t e r i s the c u r r e n t v i c e - c h a i r m a n of the Board. T h i s advice would appear t o be sound s i n c e the Board, i d e a l l y , should be independent of the other government departments and t h e i r v e s t e d i n t e r e s t s ; eg. i m p a r t i a l o v e r s e e r of e n t i r e motor -66-vehicle scene. Be n e f i c i a r i e s and Benefits The next pertinent topics are the d e t a i l s of the bene-f i c i a r i e s covered, and the benefits available under the basic accident p o l i c y recommended by the Wootton Commission, and under the accident benefit insurance contract provided by the Insurance Act. The Report's basic accident p o l i c y would cover the named insured, and members of his family, who are resident i n his household, i f injured or k i l l e d i n a t r a f f i c accident, when r i d i n g i n a vehicle driven by one of the forementioned i n d i -viduals, while a pedestrian or c y c l i s t , or when r i d i n g i n a car 2 9 driven by someone other than the above. Because motor vehicle premiums were to be based on accident involvement as well as convictions for t r a f f i c offences, the p o l i c i e s covering the d r i v e r s , of the car(s) implicated i n the accident would serve as f i r s t loss insurance to passengers, and any other relevant 30 insurance as a backup, eg. i n cases of uninsured d r i v e r s . To supply reparations to pedestrians and c y c l i s t s who are not covered by a driver's p o l i c y , eg. no driver i n the household, and to pay out of province motorists, an Automobile Insurance Compensation and Safety Research Fund would be set up and 31 financed by a gasoline and d i e s e l tax - ljd a gallon. This plan appears to be s l i g h t l y incongruous i f driver premiums are -67-to be s t r i c t l y r e l a t e d t o a c c i d e n t involvement. A l s o i t i s proba b l y l e s s expedient from an a d m i n i s t r a t i v e v i e w p o i n t , eg. more claims must be handled through the Fund, but on the oth e r hand, by d e f i n i t i o n , a c c i d e n t b e n e f i t i n s u r a n c e i s o n l y designed to compensate the i n s u r e d and h i s r e l a t i v e s and f r i n e d s , and not every p o t e n t i a l t r a f f i c v i c t i m . In a d d i t i o n i t i s noteworthy t h a t the Commission proposed v o l u n t a r y l i a b i l i t y coverage i f a d r i v e r was going t o venture 32 i n t o j u r i s d i c t i o n s i n which the t o r t system was s t i l l i n f o r c e . Now l e t us t u r n our a t t e n t i o n to the b e n e f i t s a v a i l a b l e under the Report p r o p o s a l s . The Commissioners recommended t h a t b e n e f i t s should be payable i n onl y two circ u m s t a n c e s , eg. t o t a l d i s a b i l i t y and death. ~5'"5 The Wootton Commission's b a s i c a c c i d e n t p o l i c y p r o v i d e d a maximum death b e n e f i t of $20,000."^ T h i s award would be p a i d i f the deceased were 18 years or o l d e r , and i f the v i c t i m were younger then payments would be made on a graduated s c a l e r a n g i n g from $1000 f o r a c a s u a l t y i n the 0 - 5 35 age group t o $15,000 i f the v i c t i m was i n the 16-17 age b r a c k e t . (see Schedule II) . T h i s b e n e f i t was aimed a t income c o n t i n u a t i o n 3 6 f o r the f a m i l y u n i t . Yet the r e was no s t i p u l a t i o n t h a t the r e c i p i e n t s had to be dependent on the v i c t i m f o r f i n a n c i a l support. Hence as one observer p o i n t e d out, the s o c i a l u t i l i t y of such 37 an award was somewhat dubious. I f the l e v e l of b e n e f i t s i s i n -adequate as might have been the case i n t h i s i n s t a n c e , then the ins u r a n c e funds which were t o be p a i d to non-dependent b e n e f i c i a r i e s , c o u l d have p r o v i d e d g r e a t e r u t i l i t y i f the funds were g i v e n to in a d e q u a t e l y compensated dependent b e n e f i c i a r i e s . - 6 8 -Schedule I I B.C. Royal Commission on Automobile Insurance-Death and D i s a b i l i t y  P r o p o s a l s TABLE 20:1 Gractuated Scale of Death Benefits AGE 1 BENEFIT ; 0 - 5 years $ i,nnn 1 6 - 9 " ' ^ o o n 10 - 11 » 5,000 • 12 - 15 " 10,000 16 - 17 " 15,000 ! IP- ' Beneficiaries shall have the option of either accepting the above amount of death benefit on a single payment basis, or taking the actuarial equivalent as a weekly benefit. TABLE 20:2 Graduated Scale of Disa b i l i t y Benefits AGE BENEFIT li 1 a - 5 years .... $10 per week !• li II 6 - 9' . ti 15 n it t' || '\ ; . i o - 1.1 n 20 it tt 12 - 15 25 it II ii ii jj ii io l ! - 17 it — .vo 11 ti -—••- — So • ii Compensation shall be a d j u s t e d upwards as the disabled child mover, from one a bracket to the next. Source: B.C. Royal Commission on Automobile Insurance, 1968, p. 610 & 613. -69-Th e d i s a b i l i t y compensation which would be payable i f the p r o p o s a l s had been adopted, o n l y covered the t o t a l d i s a b i l i t y case i n which the i n j u r y "prevents the i n j u r e d p a r t y from working at h i s u s u a l g a i n f u l o c c u p a t i o n , or at some o t h e r o c c u p a t i o n f o r which he i s reasonably s u i t e d by e d u c a t i o n , 3 8 t r a i n i n g or e x p e r i e n c e . " In r e s p e c t of a housewife a d i s -a b i l i t y b e n e f i t i s a l s o a v a i l a b l e i f she i s "unable t o c a r r y 39 out her normal housekeeping r e s p o n s i b i l i t i e s . The recompense was to be p a i d on a weekly indemnity b a s i s to employed, un-employed, or r e t i r e d income e a r n e r s , housewives, and on a 40 reduced b a s i s t o c h i l d r e n under the age of 18 y e a r s . The b e n e f i t i n g e n e r a l , was t o be p a i d f o r the d u r a t i o n of the 41 d i s a b i l i t y , a f t e r a one week w a i t i n g p e r i o d . The l i m i t on the award under the b a s i c a c c i d e n t p o l i c y was $50 per week i n r e s p e c t of income earners and housewives, and graduated s c a l e of b e n e f i t s f o r c h i l d r e n r a n g i n g from $10 a week to $40, f o r the same p e r i o d and depending on whether the v i c t i m was i n the 42 0 - 5 or 16 - 17 age group. As the c h i l d moved from one age b r a c k e t to another h i s indemnity was a d j u s t e d upwards 43 u n t i l the $50 maximum was reached. Notable on account of i t s absence i s a l a c k of a p r o v i s i o n f o r i n c r e a s e s i n these b e n e f i t s t o correspond t o r i s e s i n the g e n e r a l c o s t of l i v i n g or g e n e r a l wage r a t e s . The Commissioners a l s o recommended t h a t there be no coverage -70-of m e d i c a l and h o s p i t a l expenses s i n c e they a n t i c i p a t e d the 44 M e d i c a l Care P l a n , would compensate the v i c t i m s f o r these c o s t s except f o r the three month w a i t i n g p e r i o d , eg. r e s i d e n t requirement, and t h i s contingency would be covered by "the Fund. A l s o they recommended t h a t i f a t r a f f i c v i c t i m was covered by Workmen's Compensation then.he would be d i s q u a l i f i e d 45 from r e c e i v i n g automobile i n s u r a n c e b e n e f i t s . In summary the recommendations of the Wootton Commission p e r t a i n i n g to the b a s i c a c c i d e n t b e n e f i t s were extremely l i m i t e d i n scope, and the weekly i n d e m n i t i e s were not o v e r l y generous, but c o n s i d e r i n g the c o s t of t h i s i n s u r a n c e not much more c o u l d be r e a s o n a b l y expected. A l s o t h e r e appeared to be some d i s c r e p a n c i e s i n the p r o v i s i o n s of b e n e f i t s and the s t a t e d o b j e c t i v e s of the d r i v e r p o l i c y . However, the prime concern of the Wootton Commission appeared t o be a compulsory n o - f a u l t a c c i d e n t coverage, f o r every p o t e n t i a l t r a f f i c v i c t i m , which would p r o v i d e a t l e a s t s u b s i s t e n c e b e n e f i t s , and each person was e n t i t l e d t o purchase supplementary i n s u r a n c e to i n c r e a s e the s i z e and scope of h i s compensation. P o s s i b l y the c r i t i c a l flaw i n t h i s l o g i c , was and i s t h a t automobile v i c t i m s cannot or w i l l not a n t i c i p a t e t h e i r exposure to t r a f f i c a c c i d e n t r i s k s , and hence would be i n a d e q u a t e l y p r o t e c t e d i f and when they become road a c c i d e n t c a s u a l t i e s . At t h i s p o i n t we w i l l focus our thoughts on the p r e s e n t B r i t i s h Columbia l e g i s l a t i o n . The i n d i v i d u a l s i n s u r e d under the -71-l i m i t e d a c c i d e n t b e n e f i t p o l i c y , under e i t h e r the owner or d r i v e r p o l i c y , are the i n s u r e d , any passengers i n h i s c a r , and those d e f i n e d as i n s u r e d s , eg. the i n s u r e d ' s w i f e and any dependent r e l a t i v e s , i f they are r e s i d i n g i n the same d w e l l i n g 46 . . premises as the i n s u r e d . Two aspects of t h i s i n s u r a n c e r e q u i r e e x p l a n a t i o n . F i r s t an i n s u r e d v i c t i m i s e n t i t l e d t o b e n e f i t s i f he i s e n t e r i n g , r i d i n g , d r i v i n g , or a l i g h t i n g from a motor v e h i c l e or i f s t r u c k by an automobile w h i l e a p e d e s t r i a n or cy-47 c l i s t . T h i s p r o v i s i o n i s s i g n i f i c a n t because a s e c t i o n of the Insurance Act p r o h i b i t e d , and s t i l l p r o h i b i t s a daughter, son, v / i f e , or husband of an i n s u r e d from s u i n g the i n s u r e r of the forementioned i n s u r e d i n a t o r t a c t i o n , eg. the i n s u r e r i s not l i a b l e t o these p a r t i e s under a motor v e h i c l e p o l i c y i f these i n d i v i d u a l s are e n t e r i n g , r i d i n g or a l i g h t i n g from the 48 f a m i l y c a r . A l s o i t should be noted t h a t the owner's p o l i c y i s the f i r s t l o s s i n s u r a n c e , and o t h e r a c c i d e n t b e n e f i t cover-49 age i s excess i n s u r a n c e , but i t i s important i f the owner does not c a r r y any i n s u r a n c e . I f t h e r e i s no r i g h t of r e c o v e r y a g a i n s t the T r a f f i c V i c t i m s Indemnity Fund, eg. i n the uninsured v e h i c l e , h i t - a n d - r u n or s t o l e n car s i t u a t i o n s , then the f o r e -mentioned b e n e f i c i a r i e s can c o l l e c t under the excess i n s u r a n c e 50 p o l i c y . A proposed amendment would make i n s u r e r s a b s o l u t e l y l i a b l e i n r e s p e c t of a c c i d e n t b e n e f i t s payable to occupants of or p e d e s t r i a n s s t r u c k by i n s u r e d v e h i c l e s , d e s p i t e the f a c t t h a t the d r i v e r of the v e h i c l e breached a s t a t u t o r y c o n d i t i o n . 5 1 f -72-However the i n s u r e r s t i l l has a r e c o u r s e a g a i n s t the d r i v e r 52 i n r e s p e c t of such payments and hence i f a member of the f a m i l y i s i n j u r e d , the f a m i l y u n i t has no "net" compensation. T h e r e f o r e those e l i g i b l e f o r b e n e f i t s under the p r e s e n t l e g i s l a t i o n are s i m i l a r to those recommended by the Wootton Commission. Hence the gaps i n the p r e s e n t law are i n r e s p e c t of a v i c t i m ; who i s a n e g l i g e n t p e d e s t r i a n or c y c l i s t , who does not h o l d or i s not covered by an owner's or d r i v e r ' s p o l i c y , and who i s s t r u c k by an u n i n s u r e d , h i t - a n d - r u n , or a s t o l e n ve-h i c l e , o r who i s an occupant or d r i v e r i n a s t o l e n or uninsured car (assuming the d r i v e r of such a v e h i c l e i s a t f a u l t ) . These t r a f f i c v i c t i m s are not covered by e i t h e r l i a b i l i t y or a c c i d e n t b e n e f i t i n s u r a n c e and do not r e c e i v e compensation from the T r a f f i c V i c t i m s Indemnity Fund because they are at f a u l t . Compensation a v a i l a b l e under the l i m i t e d a c c i d e n t b e n e f i t i n s u r a n c e covers l o s s of income i n the event of t o t a l d i s a b i l i t y o r death, and m e d i c a l and r e h a b i l i t a t i o n expenses not recom-53 pensed by the m e d i c a l plans, and f u n e r a l expenses.. The death b e n e f i t s , s i m i l a r to the Report recommendations, depend on the 54 age of the deceased. However the b e n e f i t s are a l s o r e l a t e d t o the s t a t u s of the deceased, eg. head of the household^the primary income p r o v i d e r , spouse i n a two-parent household, and dependent c h i l d r e n , eg. under 18 years o l d and f i n a n c i a l l y dependent on the head of the household f o r f i n a n c i a l support, or over 18 years o l d and f i n a n c i a l l y dependent on the head of -73-the household because of p h y s i c a l or mental i n f i r m i t y . The maximum recompense to which the b e n e f i c i a r i e s are e n t i t l e d i f the head of the household d i e s , i s a $5,000 lump sum, p l u s i n the case of one or more s u r v i v o r s $50 per week p l u s $10 f o r each dependent o t h e r than the f i r s t f o r 2 y e a r s , and an a d d i t i o n a l $1,000 lump sum f o r each dependent other than the f i r s t . ^ The b e n e f i t l i m i t s i n r e s p e c t of the death of a housewife and c h i l d r e n i n a road a c c i d e n t are, r e s p e c t i v e l y 57 $2,500 and $1,500. The b e n e f i t depends on the age of the t r a f f i c c a s u a l t y , eg. maximum b e n e f i t f o r head of household and housewife i s awarded i f they are i n the 10-64 age b r a c k e t , whereas the c h i l d r e n ' s b e n e f i t reaches a peak i f the v i c t i m 3 8 i s i n the 10 - 17 age group. For the f u l l compensation p i c t u r e see Schedule IIX.. The b e n e f i t s are a p p a r e n t l y p r o v i d e d on the assumption t h a t d u r i n g the forementioned p e r i o d s the f i n a n c i a l h a r d s h i p s and/or mental anguish v / i l l reach t h e i r z e n i t h . A l s o some thought has probably been g i v e n to the a v a i l a b i l i t y o f other s o c i a l i n -surance b e n e f i t s , eg. the Canada Pension P l a n , and the u n c e r t a i n l i f e expectancy at age of 65 or o l d e r , so i n l a r g e p a r t the payments appear to be l o g i c a l . A l s o t o be noted i s the c o n d i t i o n t h a t death b e n e f i t s w i l l be reduced i f any payment has been made under the d i s a b i l i t y 59 award s e c t i o n i n r e s p e c t of the same a c c i d e n t . T h i s seems t o be an attempt to l i m i t a c c i d e n t b e n e f i t payments, and economic--74-S c h e d u l e . I I I Current Death B e n e f i t P r o v i s i o n s i n B.C. SUBSECTION 2 . — D E A T H AND TOTAL. DISABILITY Part I.—Death Benefits A . Subject to the provisions cf this Pnrt I, for death which ensues within 130 days of the accident, a payment—based on the age and status at the date of ihcTaccident of the deceased in a household where spouse or dependents survive— of the following amount:— A « of Deceased at Date of Accident Stales of Deceased Head of Household Spouse in Tvvo-p.-T-.-nl 1Iousehoids Dependent Children U p to age 4 years.. 5 to 9 years 10 to 17 years 18 to 64 years 65 to 69 years 7 0 years and over. $5,000 5,000 3,000 2,000 ;2,500 2,500 1,500 1,000 S500 1,000 1.500 1.000 1,000 500 In addition,.with_respect to death of head of household, (a) where there arc two or more survivors—spouse or dependents—the prin-cipal sum payable is increased SI.000 for each survivor other than the first; (b) where there arc one or more survivors, $50 per week plus $10 per depen-dent other than the first, payable each week for a period of 104 weeks. Any weekly benefit shall terminate upon death of all survivors. B . For the purposes of this Part I, (1) The spouse of head of household shall be deemed to-be-the spouse with the lesser income in the year preceding the date of death; (2) a deceased person whose only surviving dependents are parents of such a person shall be deemed a head of household if such parents, at the date of accident, were residing in the same dwelling premises as the deceased person and were principally dependent upon him for financial support; (3) the words "dependent c h i l d " as used herein shall mean a child (a) under the age of IS years for whose support the head of house-hold is lcgaliy liable and who is dependent upon the head of household for financial support; or (b) 18 years of age or over :md..jcsiding in the same dwelling premises as the head of household who, because of mental or physical infirmity, is wholly dependent upon tlic head of household for financial support; — — (4) ;he,..iotal sum payable shall be paid with respect to death of head of household or spouse to the surviving spouse. If there is no surviving spouse in the household, no amount shall be payable unless there arc surviving dependent children or dependent parents, as defined in (2) 2050-17 Source: B.C. Regulations 43/71. -75-a l l y and s o c i a l l y i s not j u s t i f i a b l e s i n c e the f i n a n c i a l needs of the dependents upon the death of the v i c t i m i n the above case are as g r e a t or g r e a t e r than the case i n which the v i c t i m i s k i l l e d i n s t a n t a n e o u s l y i n an a c c i d e n t . L a s t l y by an Order i n C o u n c i l the l i m i t a t i o n p e r i o d i n r e s p e c t of a death f o l l o w i n g an autombile a c c i d e n t , eg. 6 0 180 days, was r e p e a l e d on June 30, 1971, so consequently death b e n e f i t s are payable under the l i m i t e d a c c i d e n t coverage i f the a c c i d e n t i s the cause of death. U n l i k e the Manitoba and Saskatchewan schemes t h e r e i s no l i m i t on the death b e n e f i t s , assuming the dependent requirement can be met, and the t r a f f i c v i c t i m i s a head of a household. I f the c a s u a l t y i s e i t h e r a housewife or a c h i l d , and g e n e r a l l y i n the case of a head of a household, the death b e n e f i t s w i l l be much lower than those suggested by the Wootton Commission. Compensation i s a l s o a v a i l a b l e , i n the form of a weekly indemnity, to t r a f f i c v i c t i m s who are "wholly and c o n t i n u o u s l y " d i s a b l e d , i f they were employed or had been employed f o r a t l e a s t s i x out of the l a s t twelve months p r i o r t o the a c c i d e n t date, and the i n j u r y prevents the v i c t i m from performing "any 61 and every duty p e r t a i n i n g to h i s o c c u p a t i o n or employment." The b e n e f i t i s payable, a f t e r a seven day w a i t i n g p e r i o d , u n t i l the v i c t i m r e c o v e r s and can engage " i n any o c c u p a t i o n or employ-ment f o r which he i s r e a s o n a b l y s u i t e d by e d u c a t i o n , t r a i n i n g -"7 6-or experience", or u n t i l he reaches the age of 65 years, when 6 2 i t may be reduced, eg. other benefits. The weekly indemnity i s 80 percent of the beneficiary's gross wage, subject to a maximum of $50 per week, and a minimum of $4 0 per week, unless the r e c i p i e n t i s a "dependent" c h i l d i n which case the benefit 6 3 w i l l not exceed his average wage. This benefit may be r e s t r i c t e d i f the v i c t i m i s covered under group or l i f e insurance i n respect of d i s a b i l i t y , eg. i f the t o t a l benefits payable under a l l insurance contracts exceed his gross income then the benefit from the accident insurance w i l l only be paid to the extent of the proportion that t h i s insurance bears to the 64 aggregate of benefits i n r e l a t i o n to the t o t a l loss suffered. This approach makes sense because the v i c t i m should have an incentive to return to work, eg. such payments are not taxable, and the s o c i a l u t i l i t y aspect should be considered, eg. eliminate unnecessary costs. A housewife i s also e l i g i b l e to receive $50 a week for a maximum duration of 26 weeks, i f she i s "completely incapacitated 6 5 and unable to perform any of her household duties. The d i s a b i l i t y benefits are very s i m i l a r to those recommended by the Wootton Commission with the only substantial differences being the e l i g i b i l i t y requirements, eg. unemployed or r e t i r e d casualties do not receive compensation under the present law.^ Hence r e t i r e d i n d i v i d u a l s or students who have worked for 6 and of the preceding 12 months are not e l i g i b l e for d i s a b i l i t y -77-b e n e f i t s , y e t must pay the premiums. A l s o there i s a l i m i t -a t i o n on the d u r a t i o n of such b e n e f i t s which may be awarded to a housewife, and t h i s i s d i f f e r e n t from the Report p r o p o s a l s , eg. no l i m i t a t i o n p e r i o d . The p r o v i s i o n s of the c u r r e n t l e g i s l a t i o n , d i s s i m i l a r t o the Commissioners' recommendations, i n c l u d e coverage o f : f u n e r a l expenses up to a maximum o f $500, and a l l reasonable 6 7 m e d i c a l and r e h a b i l i t a t i o n c o s t s to a maximum of $50,000. Although there i s a c o n d i t i o n t h a t these l a t t e r payments are on l y made i f they have not a l r e a d y been covered by law, eg. M e d i c a l Care or H o s p i t a l Care P l a n s . T h i s p r o t e c t i o n does f i l l i n any gaps i n the m e d i c a l coverage, eg. th r e e months r e s i d e n t contingency, and p r o v i d e s r a t h e r complete r e h a b i l i t -a t i o n treatment i n s u r a n c e i n c o n j u n c t i o n w i t h the M e d i c a l Care P l a n . 6 8 In a d d i t i o n t o these b e n e f i t s the t r a f f i c v i c t i m r e t a i n s the r i g h t t o r e c o v e r damages under uncompensated "heads" o r beyond the l i m i t s imposed under a c c i d e n t i n s u r a n c e , i n r e s p e c t of l o s s of income, or f u n e r a l and medi c a l expenses v i a a t o r t a c t i o n . In summary i t would appear t h a t the a c c i d e n t b e n e f i t p r o v i s i o n s of the Insurance Act are broader i n scope, but the death and d i s a b i l i t y b e n e f i t s are l e s s generous, as compared w i t h the Wootton Commission recommendations. -78-E x c l u s i o n s Another i n t e r e s t i n g c o n t r a s t between the Report and the law i s the e x c l u s i o n of c e r t a i n i n d i v i d u a l s from the l i s t of e l i g i b l e b e n e f i c i a r i e s i n r e s p e c t of the a c c i d e n t p o l i c y . Only s u i c i d e or s e l f - i n f l i c t e d i n j u r y cases would be d i s q u a l i f i e d from compensation under the Commissioners' 69 p r o p o s a l s . The e x c l u s i o n s l i s t e d by the Insurance Act i n c l u d e the above circumstance and many more, no coverage; i f automobile i s b e i n g used i n a speed race or f o r the purpose of "any i l l i c i t or p r o h i b i t e d t r a d e or t r a n s p o r t a t i o n , i f b o d i l y i n j u r y or death caused by r a d i o a c t i v e m a t e r i a l , or 70 i f v i c t i m i s e n t i t l e d to workmen's compensation. A l s o the i n s u r e d w i l l not be e n t i t l e d t o m e d i c a l , r e h a b i l i t a t i o n or f u n e r a l expenses or d i s a b i l i t y b e n e f i t s i f the i n j u r y or death i s s u s t a i n e d w h i l e he i s d r i v i n g a c a r ; under the i n f l u e n c e of a l c o h o l or drugs, without a v a l i d l i c e n c e , or w h i l e u n a u t h o r i z e d 71 or u n q u a l i f i e d by law. The f i r s t group of e x c l u s i o n s a p p l i e s to a l l c a t e g o r i e s of v i c t i m s who are occupants of the car and p e d e s t r i a n s i n speed race s i t u a t i o n s , and p r o h i b i t s any form of a c c i d e n t b e n e f i t r e c o v e r y to the above v i c t i m s . The second group of d i s q u a l i f i e d v i c t i m s a p p l i e s o n l y to the d r i v e r , eg. not occup-ants, and even then the b e n e f i c i a r i e s of the c a s u a l t y , i f he (the d r i v e r ) i s k i l l e d w h i l e d r i v i n g under the s p e c i f i e d c i r -cumstances, can s t i l l r e c o v e r death b e n e f i t s , presumably because -79-the dependents were not at f a u l t i n r e s p e c t o f the deceased's t r a n s g r e s s i o n s , and w i l l become an economic burden i f not compensated. The o n l y p o s s i b l e reasons f o r the d i s q u a l i f i c a t i o n of the i n j u r e d d r i v e r or the t o t a l e x c l u s i o n s s e t out i n the f i r s t . g r o u p i s the c o n v e n t i o n a l m o r a l i t y p o i n t of view t h a t the wrongdoer s h a l l not g a i n a b e n e f i t from h i s i l l e g a l a c t i v i t i e s . The Wootton Commission would appear to have r e -j e c t e d such a n a c h r o n i s t i c n o t i o n s , arguing t h a t the primary concern i s compensation f o r t r a f f i c v i c t i m s , not u p h o l d i n g 72 the m o r a l i t y of s o c i e t y . Premiums Although the i s s u e of motor v e h i c l e premiums w i l l be d i s c u s s e d i n more d e t a i l i n a l a t e r chapter some aspects of the method of premium d e t e r m i n a t i o n r e q u i r e a t t e n t i o n at t h i s p o i n t . The Wootton Commission recommended t h a t the b a s i c a c c i d e n t p o l i c y premium and l i c e n c e suspensions should depend on a demerit p o i n t system founded on a c c i d e n t involvement and 73 p r o v i n c i a l Motor v e h i c l e and C r i m i n a l Code c o n v i c t i o n s . (See Schedule IVI . The e s s e n t i a l f e a t u r e of the scheme i s t h a t d r i v e r ' s l i c e n c e s would be d i v i d e d i n t o f o u r c a t e g o r i e s ; w hite, green, y e l l o w , and r e d , and the c o l o u r would i n d i c a t e the demerit p o i n t r a t i n g , eg. white l i c e n c e - 0-3 demerit 74 p o i n t s , r e d l i c e n c e 7-10 demerit p o i n t s e t c . The premium would be lowest f o r a d r i v e r h o l d i n g a white l i c e n c e , eg. $16.76, Schedule IV-1. B.C. Royal Commission on Automobile Insurance Proposed  Premium Rates and Demerit Point System Premium Rates i V i v r ; r ' s L i c e n c e Green Yellow Red Percentage of T o t a l L i c e n s e d D r i v e r s /» 4 5% 6% x i X I x A Estimated Maximum Premium; f o r B a s i c , _ P o l i c y $16.76 -= 1/^/7C 2 1 . 3 6 -23-91 " 1 ' C / ' l 2 6 . - s * , DEMERIT POINT SYSTEM WHITE D r i v e r ' s L i c e n c e : — _ up t o a maximum of 3 demerit p o i n t s GREEN D r i v e r ' s L i c e n c e : — _ _ over 3 - maximum 5 demerit p o i n t s YELLOW D r i v e r ' s L i c e n c e : _ _. over 5 - maximum 7 demerit p o i n t s RED D r i v e r ' s L i c e n c e : _ over 7 - maximum 10 demerit p o i n t s TABLE 20:3 Accident Demerit P o i n t s J j; A c c i d e n t s i n 1 year i n 2 years j i n 3 years i n 4 vears i i ; 1 0 0 1 0 0 3 . > ; : J 1 1 : 3 „ 6 4 | u 3 1 4 9 7 ' 1 5 5 SUSPEND 10 ! 10 • ? / O SUSPEND | • SUSPEND 10 7 1-SUSPEND -80-Schedule IV-2 -- - B:C. Royal Commission on Automobile Insurance "and Proposed Demerit P o i n t System (cont.) CRIMINAL CODE OF CANADA - OFFENCES  10 Demerit Points Each C. C. C. Sec. 192 Death by criminal negligence 193 Injury by Criminal negligence 221 (l)(B) Criminal negligence 221 (2)(I?) : Failing to remain 221 (4) Dangerous Driving 222 Drunk Driving 223 (A)(!i)(C) : A b i l i t y impaired 225 (3)(A) - Driving while under suspension 4 Demerit Points Each' a 153 Following too closely 54 : Failure to report an accident 6 Demerit Points Each i1 Ol i 138 Driving without due care and attention'j; 8 Demerit Points Each 69 Permitting use by unlicenced drivers 10 Demerit, Points Each . 56 • Impersonation --81- -; Schedule IV -3  B.C. Royal Commission on Automobile Insurance Proposed Demerit P o i n t System (Cont.) P. CT"KOTflii VEHICLE ACT - V[QI.AT fONS 2 Demerit P o i n t s Each V. A. Sec. 127 128 144 149 157 158 159 160 163 164 165 166 174 175 s 176 180 182 184 185 189 191 194 197-8 143 148 ; 150 18.8 134 135 139 140 141 142 145 146 151 154 155 156 167 169 177 186 196 T r a f f i c C o n t r o l L i g h t (Red L i g h t ) T r a f f i c C o n t r o l L i g h t (Arrows, f l a s h i n g red and p e d e s t r i a n crosswalk) Change of lanes P a s s i n g on r i g h t L e f t t u r n o t h e r than i n t e r s e c t i o n Right t u r n other than i n t e r s e c t i o n Reverse t u r n S i g n a l s on t u r n i n g Y i e l d at i n t e r s e c t i o n Y i e l d r i g h t - o f - w a y on l e f t t u r n E n t e r i n g through highway Emerging from a l l e y Railway c r o s s i n g c o n t r o l l e d by mechanical d e v i c e Railway c r o s s i n g stop s i g n Commercial v e h i c l e s at r a i l w a y c r o s s i n g Improper s t o p p i n g Improperly parked C a u t i o n i n backing S e a t i n g a motorcycle D i s t a n c e f o l l o w i n g f i r e engine D r i v i n g on sidewalk Opening door ... S a f e t y equipment D r i v i n g on r i g h t except when p a s s i n g Duty when meeting oncoming v e h i c l e s Safe p a s s i n g on l e f t 3 Demerit P o i n t s Each Obedience to R e s t r i c t i o n Obedience t o speed sig n s ( c o n s t r u c t i o n ) Obedience to flagman Slow D r i v i n g Speeding Speed playground or s c h o o l zone Meeting o r passing s c h o o l buses P a s s i n g when meeting oncoming v e h i c l e s P a s s i n g on s o l i d double l i n o s C l e a r view r e q u i r e d on passing D r i v i n g a g a i n s t b a r r i e r -E n t e r i n g C o n t r o l l e d Access Highway Proper t u r n at i n t e r s e c t i o n Emergency v e h i c l e approach Right of way between p e d e s t r i a n and v e h i c l e Stop s i g n Requirement before moving v e h i c l e TransDort E x o l o s i v e s Source : B . C . Royal Commission on Automobile Insurance 1968, p - — 8 2— 1 — 625-28, -83-as compared w i t h $26.4 8 f o r the h o l d e r of a red l i c e n c e , and s i n c e c r e d i t would have been g i v e n f o r t r a f f i c v i o l a t i o n f r e e y e a r s , and the demerit p o i n t r a t i n g f o r a c c i d e n t s would be lowered over the p a s s i n g y e a r s , i f no f u r t h e r a c c i d e n t s had o c c u r r e d . The l i c e n c e s and i n s u r a n c e would be i s s u e d a n n u a l l y 75 on the i n s u r e d ' s b i r t h d a y . I f the d r i v e r accumulated more than 10 demerit p o i n t s 7 6 h i s l i c e n c e was a u t o m a t i c a l l y suspended. The p o i n t which does not seem e q u i t a b l e , but i s more expedient a d m i n i s t r a t i v e l y was the assessment of demerit p o i n t s f o r a c c i d e n t s r e g a r d l e s s of f a u l t . The Commissioners' f e l t t h a t t h i s approach was reasonable because a c c i d e n t prone 77 d r i v e r s should be p e n a l i z e d or r u l e d o f f the roads, and p o s s i -* -b l y t h i s a c t i o n would r e s u l t i n g r e a t e r t r a f f i c s a f e t y . In c u r r e n t p r a c t i c e the motor v e h i c l e i n s u r a n c e premium i s based on percentage surcharges l e v i e d on the standard manual 7 8 premium. However a m o d i f i e d demerit p o i n t system has been . . . 79 i n s t i t u t e d i n r e s p e c t of l i c e n c e suspensions. (see Schedule V). I f the d r i v e r amasses 9 demerit p o i n t s , then h i s l i c e n c e w i l l " 8 0 e i t h e r be suspended or the d r i v e r w i l l be put on p r o b a t i o n . A l s o f o r each 10 demerit p o i n t s the d r i v e r must pay a $25 f i n e 81 i n a d d i t i o n to o t h e r p e n a l t i e s , eg. suspension of h i s l i c e n c e . I t should be r e c o g n i z e d t h a t the c u r r e n t demerit system i s based s o l e l y on t r a f f i c v i o l a t i o n c o n v i c t i o n s . ./Schedule V - l Cur r e n t Demerit P o i n t System f o r L i c e n c e Suspensions i n B.C. SCHEDULE -2 POINTS vehicle Act) Driving O.Ter.cc 124 Disobeying a Peace Officer. 127 Disobeying a traffic-control device. 128 Failing to stop at traffic-control light. 137 Driving over newly painted sign or marking. 144 Changing lanes illegally. 149 Passing on right. 152 Disobeying traffic signal or sign. 157 Illegal left turn. 15S Illegal right turn. 159 Making an illegal reverse turn. 160 Failing to signal a turn. 161 N o proper signalling equipment. 162 No proper signalling equipment for right-hand drive vehicle. "3'POINTS'' " *• ' 1 ~ Divisions (Motor-vehicle Ac: Regulations) Drivinp Offence 4, s. 4.04 (h) Misuse of high beams. 7A, S. 7A.01 Loud and unnecessary noise from motor-vehicle. 6 POINTS Sections (Nfotor-vchielc Act) Driving 0ftcr.ee 138 Driving without due care and attention. • 10 POINTS Sections (Molor-vcliiclc Act) Driving Ofler.ce IS (2n) Driving without insurance. 20 Driving while right to obtain licence is suspended. Seel ions (Criminal C\u!e of Canada) Drivir.c: Offence 192 Causing death by criminal negligence. 193 Causing injury by criminal negligence. 221 (I) (/>) Criminal negligence. 221 (2) (6) Failing to remain at scene of accident. 221(4) Dangerous driving. 222 Driving while ability impaired. 223 (2) Breath sample not provided. 224 Driving with more than 80 mgs. of alcohol in blood. 225 (3) (a) Driving while under suspension. - 8 4 -Schedule V-2 Current Demerit P o i n t System f o r L i c e n c e Suspensions i n B.C. (Cont 2 P O I N T S Section*; (M.-iur-vcliiclc Act) Dri\in ; : Otlencc 163 F a i l i n g to y iek i right-of-way al intersection. 164 F a i l i n g to yie ld right-of-way on left m m . 165 F a i l i n g to y ie ld right-of-way on entering a through highway. 166 Emerg ing f rom an al ley without due care. .171 F a i l i n g to exercise duty to pedestrian. 174 F a i l i n g to stop at ra i lway crossing control led by mechanical device. 175 F a i l i n g to heed ra i lway stop sign. 176 C o m m e r c i a l vehicle fai l ing to stop at ra i lway crossing. 1S2 L e a v i n g vehicle improper ly parked. 1S4 F a i l i n g to exercise due caut ion backing up. 185 Improper seating on motor-cycle . 187 Improper control and operation of vehicle in canyon or defile. 188 Coas t ing vehicle wi th gears in neutral . 189 F a i l i n g to mainta in proper distance fo l lowing fire-engine. 190 D r i v i n g over fire-hose. 191 D r i v i n g on sidewaik. 194 Opening door when unsafe. 195 I l legal ly depositing articles o n h ighway. Divisions (Motor-vehicle Act) Regulations Driving Offence 3 Offences w i th regard to number-plates. 4 Offences w i th regard to lamps. 7 Offences w i i h regard to other equipment. 22 I l legal operat ion of antique motor-vehicle . 24 I l legal operation of vehicles of unusual or nove l size. 3 P O I N T S Sections (Motor-vehicle Act) Driving Offence *W \W/ * ^ . w.*. .-w~.  .- • 134 F a i l i n g to obey construct ion speed zone. 135 F a i l i n g to obey construct ion zone flagman. 139 D r i v i n g too s lowly . 140 . Speeding. 141 Speeding in p layground or school zone. 142 F a i l i n g to stop on meeting or overtaking school bus. 143 F a i l i n g to dr ive on right (except when pass ing) . 145 Passing when meeting oncoming vehicle. 146 ' Passing on so l id double l ine. 148 F a i l i n g to dr ive safely when overtaking another vehicle (or when being over-taken) . 150 F a i l i n g to drive safely passing on left. 151 Passing with ^ut clear v iew for safe distance. 153 F o l l o w i n g \oscly. 154 ' D r i v i n g agrt... h ighway d iv is ion barrier. 155 Improper entry to controlled-acccss highway. 156 Improper turn at intersection. 167 F a i l i n g to stop wlten emergency vehicle approaches. 169 F a i l i n g to y ie ld right-of-way to pedestrian. 177 Fa i l i ng to stop properly at stop sign. 1S6 M o v i n g vehicle on highway when unsafe to do so. Source: B.C. Regulations 15/70 •'. --85-. --86-T h i s s y s t e m a t i c approach to l i c e n c e suspensions i s l o g i c a l , but the d i f f i c u l t y i n p r a c t i c e i s t r y i n g t o enf o r c e the sentence, eg. people d r i v i n g w h i l e t h e i r l i c e n c e i s under suspension. C o n t r i b u t o r y Negligence Act Another p o i n t which was mentioned i n a p r e v i o u s chapter, but deserves comment here because of the d i r e c t or i n d i r e c t i n f l u e n c e o f the Wootton Commission's recommendations. Amend-8 2 ments were made i n r e s p e c t of the Contributory Negligence Act, eg. a passenger can sue h i s d r i v e r and other f a u l t y p a r t i e s as j o i n t t o r t f e a s e r s - each i s r e s p o n s i b l e t o the cl a i m a n t to the 8 3 e x t e n t of the p l a i n t i f f ' s t o t a l l o s s , and the Motor Vehicle Act, eg. a g r a t u i t o u s passenger can r e c o v e r damages from h i s d r i v e r i f he can show " o r d i n a r y " n e g l i g e n c e . These changes 'enhance the t r a f f i c v i c t i m ' s t o r t r e c o v e r y p r o s p e c t s t o a c o n s i d e r a b l e e x t e n t , e s p e c i a l l y i n the case of the h e r e t o f o r e maligned, g r a t u i t o u s passenger. Age o f D r i v e r L i c e n c e A p p l i c a n t s A f i n a l f e a t u r e of the B r i t i s h Columbia l e g i s l a t i o n was 84 a l s o i n s p i r e d by the Wootton p r o p o s a l s . A s e c t i o n of the Motor Vehicle Act p r o v i d e s t h a t the age minimum f o r d r i v e r ' s l i c e n c e s i s t o be r a i s e d from 16 to 18 y e a r s , u n l e s s the a p p l i c a n t has s u c c e s s f u l l y completed a d r i v e r - t r a i n i n g course, however t h i s s e c t i o n has not been p r o c l a i m e d . The r e a s o n i n g o f the Commissioners was a p p a r e n t l y based on the assumption t h a t the o l d e r age l i m i t would r i d the h i g h -ways of immature and i r r e s p o n s i b l e d r i v e r s , even though the s t a t i s t i c s howed a hi g h e r a c c i d e n t frequency i n the 18 and 19 8 6 year o l d b r a c k e t as compared w i t h the 16 - 18 age group. Qui t e p o s s i b l y t h i s r e a s o n i n g i s s u b j e c t t o s c e p t i c i s m s i n c e surcharges i n d i c a t i n g blameworthy d r i v i n g h a b i t s are a p p l i e d to a l l motor v e h i c l e p o l i c i e s i n which the male i n s u r e d i s under 25 y e a r s . C o n c l u s i o n In c o n c l u s i o n i t i s apparent t h a t many of the major recommendations of the Commission were implemented i n p a r t or i n t o t a l by the government. The o u t s t a n d i n g e x c e p t i o n was the f a i l u r e t o a b o l i s h f a u l t . T h i s departure was not s u r p r i s i n g c o n s i d e r i n g the fo r m i d a b l e groups which opposed t h i s s u g g e s t i o n d u r i n g the h e a r i n g s of the s p e c i a l Committee of the L e g i s l a t u r e which was formed t o study the Report. The r e s u l t i n g l e g i s l a t i o n overcame many of the flaws i n the compensation system, y e t a gap between economic l o s s and r e p a r a t i o n s s t i l l e x i s t s , and automobile i n s u r a n c e remains expensive i n r e l a t i o n t o the b e n e f i CHAPTER V THE PRACTICAL RAMIFICATIONS OF THE  NO-FAULT LEGISLATION I n t r o d u c t i o n The Wootton Commission recommended the a b o l i t i o n of f a u l t and the adoption of a complete n o - f a u l t , s e l f - i n s u r a n c e , scheme i n r e s p e c t of b o d i l y i n j u r y or p r o p e r t y damage r e s u l t i n g from motor v e h i c l e a c c i d e n t s . T h i s concept was proposed because of a number of i n h e r e n t d e f e c t s i n the t o r t system. In s h o r t these shortcomings were: 1) the r e l a t i v e l y low l o s s r a t i o which r e f l e c t e d the i n e f f i c i e n c i e s of the system i n r e s p e c t of the d e t e r m i n a t i o n and a t t r i b u t i o n of f a u l t " , and hence r e s u l t e d i n h i g h e r premium charges," 2) the delay and l e g a l c o s t s a s s o c i a t e d w i t h the a scertainment, eg. s e t t l e m e n t or judgment of compensation f o r the t r a f f i c v i c t i m , 2 3) the inadequacy of compensation r e l a t i n g t o the s e r i o u s and f a t a l l y i n j u r e d motor v e h i c l e ca-s u a l t i e s - ^ and 4) the c o u r t c o n g e s t i o n which was aggravated by automobile a c c i d e n t c l a i m s . ^ In t h i s chapter the w r i t e r w i l l attempt to analyze the extent to which the amendments to the Insurance Act 3 which produced the p r e s e n t h y b r i d system of p a r t f a u l t and p a r t n o - f a u l t , have -89-overcome the flaws i n the pure t o r t system as o u t l i n e d by the Wootton commission. U n f o r t u n a t e l y the i n f o r m a t i o n r e q u i r e d f o r a complete examination o f the c u r r e n t scheme i s not a v a i l a b l e . T h i s predicament i s due to the r e l a t i v e l y s h o r t p e r i o d d u r i n g which the scheme has been o p e r a t i v e , and to the i n a b i l i t y t o o b t a i n p r e c i s e answers to p e r t i n e n t q u e r i e s without u n d e r t a k i n g an e x t e n s i v e r e s e a r c h survey. Hence f o r the purposes of t h i s t h e s i s r e l i a n c e must be p l a c e d on data which can be gleaned from c e r t a i n p u b l i c a t i o n s , eg. the S t a t i s t i c a l Exhibit, and Submissions to the B r i t i s h Columbia Automobile Insurance Board, e t c . , and i n t e r v i e w s w i t h i n d i v i d u a l s who possess some degree of e x p e r t i s e i n r e l a t i o n t o the d i f f e r e n t a spects of the p r e v a i l -i n g system. Automobile Premiums The primary cause of the appointment of the Wootton Commission was the widespread and lo u d o u t c r y of motor v e h i c l e d r i v e r s and owners over the seemingly annual i n c r e a s e s i n automobile i n -surance premiums. However the p r e s e n t h y b r i d scheme, as we s h a l l see, has not r e s u l t e d i n any decrease i n the o v e r a l l c o s t of motor v e h i c l e coverage, eg. compulsory, a c c i d e n t b e n e f i t s and b o d i l y i n j u r y and p r o p e r t y damage l i a b i l i t y p r o t e c t i o n . When the amendments to the Insurance Act became e f f e c t i v e on January 1, 19 70, the a c c i d e n t b e n e f i t p r o v i s i o n s were "read i n " f r e e of charge by the Insurance I n d u s t r y i n r e s p e c t of automobile -90-i n s u r a n c e p o l i c i e s w r i t t e n i n 1969 but extending i n t o the 1970 c a l e n d a r y e a r . 5 However as the p o l i c i e s were renewed i n 19 70 and 19 71 the owner or d r i v e r of a motor v e h i c l e was g e n e r a l l y charged between $21 to $22 as a premium f o r h i s a c c i d e n t i n s u r a n c e . In order t o understand the reason f o r the d i s s i m i l a r r a t e s , some i n s i g h t i s r e q u i r e d i n r e s p e c t of the o p e r a t i o n s of the Automobile Insurance I n d u s t r y . At the p r e s e n t time t h e r e are three r a t i n g bureaux i n B r i t i s h Columbia and t h e i r f u n c t i o n i s to gather p e r t i n e n t s t a t i s t i c s , g i v e a d v i c e to t h e i r members and i n some cases, to p r e s c r i b e and e n f o r c e r a t e s i n r e s p e c t of t h i s group. In e f f e c t a l a r g e number of companies have d e l e g a t e d t h e i r a u t h o r i t y over p r i c i n g d e c i s i o n s 7 to the bureaux. The t h r e e o r g a n i z a t i o n s are the Canadian U n d e r w r i t e r s ' A s s o c i a t i o n , (C.U.A.), which has the l a r g e s t membership, the Independent Insurance Conference ( I . I . C . ) , a r e l a t i v e newcomer, e s t a b l i s h e d through an amalgamation, of s m a l l e r bureaux, and the Insurance Bureau of Canada (I.B.C.), which was e s t a b l i s h e d i n 1964 and has the C.U.A. and I.I.C. as c o r p o r a t e members as w e l l as twenty seven other independent 8 companies. The I.B.C. a l s o has the r e s p o n s i b i l i t y of c o l l e c t i n g data from a broad base and s u b j e c t i n g the i n f o r m a t i o n to s t a -t i s t i c a l and a c t u a r i a l a n a l y s i s i n order to serve as a guide i n r e s p e c t of " f a i r and adequate" premium r a t e s , and to p r o v i d e -91-the F e d e r a l Superintendent of Insurance w i t h a y a r d s t i c k to measure the p r o p r i e t y of r a t e s and the performance of i n d i v i -Q d u a l companies. In a d d i t i o n t o these Company Groups th e r e are a s m a l l number of f i r m s which are independent of the I.B.C. and appear t o be s u b s i d i a r i e s of American i n s u r a n c e companies, eg. A l l s t a t e , Wesco . e t c . " ^ Consequently the premium l e v i e d i n r e s p e c t of the a c c i d e n t b e n e f i t , or any component of the p o l i c y package, depends on the r a t i n g bureau, i f any, w i t h which the p a r t i c u l a r f i r m i s a f f i l i a t e d , eg. C.U.A.^ ""'" and 12 13 I.B.C. charged $22 and the I.I.C. assessed $21 i n r e s p e c t of the a c c i d e n t b e n e f i t premium i n 1970 and 1971 p o l i c y y e a r s . One company, Wesco Insurance L i m i t e d claimed, v i a i t s former p r e s i d e n t , Mr. B r i a n Rudkin, t h a t i t s r a t e i n r e s p e c t 14 of a c c i d e n t b e n e f i t s was o n l y $13. However i t has been l e a r n e d from a number of sources t h a t Westco d i d not r e a l l y p r o v i d e a c c i d e n t b e n e f i t i n s u r a n c e i n a l l cases. The o b j e c t i v e of the l e g i s l a t i o n was t h a t payments made i n r e l a t i o n t o a c c i d e n t b e n e f i t s by an i n s u r e r to h i s i n s u r e d , would correspond-i n g l y reduce any t o r t s e t t l e m e n t or award which would otherwise 15 have been payable to the i n s u r e d v i c t i m or hxs i n s u r e r . A p p a r e n t l y i n s i t u a t i o n s i n which one of Westco's i n s u r e d s had a t o r t c l a i m a g a i n s t a t h i r d p a r t y , eg. another p a r t y had been n e g l i g e n t , the a c c i d e n t b e n e f i t s were g i v e n to the v i c t i m i n the form of a l o a n , so t h a t i f or when the i n s u r e d c a s u a l t y won h i s case, he was e n t i t l e d t o r e c o v e r f u l l t o r t damages because - 9 2 -the loan arrangement d i d not a f f e c t the tort, award, eg. same p o s i t i o n as i f no a c c i d e n t b e n e f i t s had been p a i d . T h e r e f o r e t h i s p l o y would c e r t a i n l y reduce Westco's c l a i m frequency and b e n e f i t payouts, and thereby permit i t to charge lower r a t e s . A f t e r the r e c e n t d e c i s i o n i n Adrian vs Enns (unreported) i n which i t was h e l d t h a t an innoc e n t t r a f f i c v i c t i m d i d not have to a v a i l h i m s e l f of h i s r i g h t t o a c c i d e n t b e n e f i t s , eg. he c o u l d sue the n e g l i g e n t p a r t y f o r a l l h i s l o s s e s , 1 6 an 17 amendment was i n t r o d u c e d i n the B r i t i s h Columbia L e g i s l a t u r e . The B i l l p r o v i d e s t h a t the road a c c i d e n t v i c t i m , i n a n e g l i g e n c e s u i t , can onl y r e c o v e r those damages which are not covered by 18 the a c c i d e n t b e n e f i t i n s u r a n c e . Consequently once t h i s B i l l i s enacted B r i t i s h Columbia w i l l have a t r u e h y b r i d i n s u r a n c e system; n o - f a u l t t o the ext e n t of the l i m i t e d a c c i d e n t i n s u r a n c e b e n e f i t s , and f a u l t f o r damages i n excess of the a c c i d e n t b e n e f i t l i m i t s or of a d i f f e r e n t n a t u r e , eg. non-economic l o s s e s . In an i n t e r v i e w w i t h Mr. Ian Henley, P r e s i d e n t of the Automobile Insurance Claims Managers of B r i t i s h Columbia, and i n a d d i t i o n a member of the Insurance Committee of the B r i t i s h Columbia Bar, i t was l e a r n e d t h a t p r i o r t o the Adrian vs Enns case, d e s p i t e the r a t h e r nebulous d r a f t i n g of the l e g i s l a t i o n , p a r t i c u l a r l y i n r e g a r d t o S e c t i o n B (the a c c i d e n t b e n e f i t s e c t i o n ) , t h e i n s u r e r s have attempted to g i v e a l i b e r a l i n t e r p r e t a t i o n to the wording of the Insurance Act. In p a r t i c u l a r they p a i d a c c i d e n t b e n e f i t c l a i m s , i n s p i t e of the knowledge t h a t the -93-decision i n the forementioned te s t case was predictable, because t h i s was the apparent intent of the government, i f not of the l e g i s l a t i o n , and unless some undestanding was reached chaos would reign to the detriment of both insured and insurers. After the court decision he stated that the p o s i t i o n of the Industry has not changed, and once the B i l l i s enacted the l e g i s l a t i o n w i l l correspond to the general practice i n the Insurance Industry. Before commencing a discussion of the determination of the charge for these accident benefits i t i s noteworthy that unlike those of Manitoba or Saskatchewan and apparently that of the o r i g i n a l plan of the B r i t i s h Columbia Superintendent of Insurance, the premiums i n respect of t h i r d party l i a b i l i t y and accident benefits were to be calculated and noted separ-19 ately on the p o l i c y . A l l three r a t i n g bureaux proposed that the compulsory components of the automobile p o l i c y should be combined and a single premium should be developed for t h i r d 20 party l i a b i l i t y and accident benefit coverage. Their reason-ing was that the r i s k s were, and are i n t e r r e l a t e d , eg. an increase i n accident benefit claims w i l l generally a f f e c t the 21 number or scope of t h i r d party l i a b i l i t y claims. However to t h i s date the Board has not permitted the Industry to merge the two premiums, presumably because they want to ensure f u l l disclosure of a l l aspects of the rate making procedure i n respect of accident benefits, as separate and d i s t i n c t from l i a b i l i t y premiums, and to provide the motoring p u b l i c w i t h some ide a of the costs of each of the p a r t s of the automobile 22 insurance package. In the w r i t e r ' s view, i f the Board i s to f u l f i l l i t s watchdog r o l e and i n the i n t e r e s t of p u b l i c knowledge, a d e t a i l e d breakdown, p e r t a i n i n g to premium de-t e r m i n a t i o n and l o s s experience of each and every component of the automobile p o l i c y i s not only d e s i r a b l e , but e s s e n t i a l . I t i s not p o s s i b l e to b e l i e v e t h a t the Insurance Industry cannot a c c u r a t e l y d e r i v e the premiums i n respect of accident b e n e f i t s and l i a b i l i t y coverage as separate items, e s p e c i a l l y a f t e r g r e a t e r experience i s gained i n respect of the former p r o v i s i o n . Let us now look at the manner i n which accident b e n e f i t r a t e s were, and are determined. For the f i r s t two p o l i c y years (1970 and 1971), Mr. C.L. Wilcken, the I.B.C. actuary, and Dr. J.S. McGuiness, P r e s i d e n t of John A. McGuiness A s s o c i a t e s of New J e r s e y , (Consultants i n A c t u a r i a l Science and Management), a s c e r t a i n e d , t h a t a premium of $22 could be a c t u a r i a l l y supported. This t o t a l was composed of two elements, $13 f o r broaden indemn-i t y under n o - f a u l t (personal accident) and $9 i n respect of an a n t i c i p a t e d t r a n s f e r of indemnity, p r e v i o u s l y i n c l u d e d under b o d i l y i n j u r y l i a b i l i t y . ^ As noted e a r l i e r the a c t u a l premium i n respect of accident b e n e f i t s was e i t h e r $21 or $22 depending on the r a t i n g bureau a f f i l i a t i o n , but the important features of the l e v y were t h a t i t was a f l a t r a t e f o r a l l d r i v e r s and owners i n B r i t i s h Columbia, and t h a t t h e r e was an expressed allowance of $9 i n r e s p e c t of an expected t r a n s f e r of claims from b o d i l y l i a b i l i t y to a c c i d e n t s b e n e f i t coverage, and t h e r e f o r e one may have a n t i c i p a t e d a s i m i l a r decrease i n l i a b i l i t y premiums i n the scheme's f i r s t year of o p e r a t i o n , eg. 1970. At t h i s j u n c t u r e some a t t e n t i o n should be g i v e n to t h i r d p a r t y l i a b i l i t y premiums.Unlike the a c c i d e n t b e n e f i t coverage the l i a b i l i t y premium depends on the age and d r i v i n g r e c o r d of the i n s u r e d , eg. a c c i d e n t s and c o n v i c t i o n s , the r a t i n g t e r r i t o r y i n which he r e s i d e s , and the usage category of h i s 25 automobile, eg. p l e a s u r e or commercial. The r a t i o n a l e f o r t h i s r a t e d e t e r m i n a t i o n i s t h a t the above f a c t o r s are p e r t i n e n t i n the e s t i m a t i o n of r i s k i n r e s p e c t of a p a r t i c u l a r d r i v e r or owner. I f t h i s i s a l o g i c a l a n a l y s i s , and i t appears to be, then one may q u e s t i o n the f l a t r a t e d a c c i d e n t b e n e f i t s . Q u i t e o b v i o u s l y some d r i v e r s , because of t h e i r motoring h a b i t s and t e r r i t o r y i n which they normally t r a v e l are exposed to g r e a t e r a c c i d e n t r i s k s as compared wi t h other d r i v e r s , and hence a f l a t r a t e may not seem to be a p p r o p r i a t e . P a r t i c u l a r l y when i t i s a l s o noted t h a t the number of i n s u r e d s i n r e s p e c t of an a c c i d e n t b e n e f i t coverage can range from one to f i v e or more depending on the number of dependents i n the owner or d r i v e r ' s 26 f a m i l y . T h i s w r i t e r s p e c u l a t e s t h a t the s i n g l e charge p e r t a i n i n g to a c c i d e n t b e n e f i t s i s an attempt to p r o v i d e a l l motor v e h i c l e c a s u a l t i e s w i t h minimal coverage at the lowest p o s s i b l e r a t e , and hence good d r i v e r s are r e a l l y p a r t i c i p a t i n g i n a s o c i a l i n s u r a n c e scheme i n which they may not c o l l e c t any b e n e f i t s and y e t are s u p p o r t i n g those who do become i n v o l v e d i n a c c i d e n t s to some e x t e n t . Since the a c c i d e n t i n s u r a n c e b e n e f i t s were i n c l u d e d i n the automobile p o l i c y , i t i s i n t e r e s t i n g t o note the premiums which have been charged f o r t h i r d p a r t y l i a b i l i t y coverages. An average b a s i s must be employed because as was i n d i c a t e d above, each l i a b i l i t y p o l i c y i s t a i l o r - m a d e to a p a r t i c u l a r d r i v e r or owner. The l i a b i l i t y premiums, c o v e r i n g b o d i l y i n j u r y and p r o p e r t y damage, ro s e about 6 p e r c e n t i n 1970 as, compared w i t h the 1969 r a t e s , i n s p i t e of the forementioned $9 t r a n s f e r t o a c c i d e n t b e n e f i t s coverage, and i n c r e a s e d another 12 p e r c e n t 27 m 1971. In 1972 the I n d u s t r y has p r o j e c t e d a 5.9 p e r c e n t 2 8 i n c r e a s e . Consequently i t would appear t h a t the changes i n the l e g i s l a t i o n have not a p p r e c i a b l y i n f l u e n c e d the automobile l i a b i l i t y .premiums. However i t i s important to r e c o g n i z e t h a t d u r i n g t h i s p e r i o d , m e d i c a l , r e h a b i l i t a t i o n , and r e p a i r expenses have r i s e n and the wages of v i c t i m s , lawyers, and the a d m i n i s t r a t i v e s t a f f have a l s o i n c r e a s e d , so t h a t the end r e s u l t has been a r e p o r t e d underv/riting l o s s f o r the B r i t i s h Columbia Automobile 29 Insurance I n d u s t r y f o r the p a s t t h r e e y e a r s . In a d d i t i o n i t should be p o i n t e d out t h a t the I n d u s t r y has -97-s u f f e r e d a cumulative u n d e r w r i t i n g l o s s of $22 m i l l i o n d u r i n g 30 the p a s t 21 y e a r s . T h e r e f o r e i t appears t h a t the Automobile Insurance I n d u s t r y i n B r i t i s h Columbia has not been p r o f i t a b l e ( i f the accounting f o r r e s e r v e s i n r e s p e c t of f u t u r e l o s s e s and expense a l l o c a t i o n between d i f f e r e n t i n s u r a n c e l i n e s has been a c c u r a t e , eg. not too c o n s e r v a t i v e , and i f investment' income was ignored) over the p a s t two decades, and e s p e c i a l l y i n the l a s t few y e a r s . Hence to some e x t e n t , at l e a s t , i n s u r e r s must r e l y on oth e r i n s u r a n c e " l i n e s " t o overcome the u n d e r w r i t i n g d e f i c i t i n r e s p e c t of automobile i n s u r a n c e i f they are to make an o v e r a l l u n d e r w r i t i n g p r o f i t . T h i s p i c t u r e i f a c c u r a t e , c e r t a i n l y has f a r r e a c h i n g r a m i f i c a t i o n s i n r e s p e c t of the a p p r a i s a l of the p r e s e n t scheme and the recommendation of any proposed a l t e r n a t i v e p l a n . At t h i s stage o f the chapter the w r i t e r w i l l focus on an e d i c t of the Board which was made i n e a r l y December, 1971. The Automobile Insurance I n d u s t r y i n B r i t i s h Columbia was g i v e n the o p t i o n of e i t h e r l o w e r i n g t h e i r a c c i d e n t b e n e f i t r a t e s from t h e i r 1970 and 1971 l e v e l s t o $14, or p r e s e n t i n g t h e i r o b j e c t i o n s to t h i s order at a one-day h e a r i n g . Not too su r -p r i s i n g l y , the Indus t r y opted f o r the l a t t e r course of a c t i o n , and the h e a r i n g was h e l d on January 12, 1972. E v i d e n t l y t h i s c o n f r o n t a t i o n between the Board and the Indus t r y was sparked by the low l o s s r a t i o o f approximately 44 p e r c e n t i n r e s p e c t of a c c i d e n t b e n e f i t s which was d i s c l o s e d i n the 1970 S t a t i s t i c a l -98-Exhibit. (see Board L e t t e r , i n Schedule V I . ) . In response t o the forementioned l e t t e r , the C.U.A. prepared a comparison between t h e i r r a t e making p e r t a i n i n g t o a c c i d e n t b e n e f i t s i n 1970 and 1971 and t h a t proposed by the Board, (see Schedule V I I ) . B e f o r e p e r u s i n g the d i f f e r e n c e s the reader should be aware of the r e c e n t h i s t o r y i n r e s p e c t of the l o a d i n g or expense f a c t o r r e l a t i n g t o motor v e h i c l e premiums In 1930 a 45 p e r c e n t l o a d i n g f a c t o r was employed a f t e r the Hodgins Report was r e l e a s e d , but t h i s r ose t o 47 pe r c e n t i n B r i t i s h Columbia when a 2 p e r c e n t premium tax was l e v i e d i n 1948 i n order t o pay f o r the T.v.I.F. b e n e f i t s . 3 1 In 1953 the component was reduced t o 37 p e r c e n t , and s l i c e d twice more t o 32 33 33 p e r c e n t xn 1966, and to 30 pe r c e n t i n 1970. The i t e m i z e d expense f a c t o r s were 3 4 35 1966 J 1970 commissions 12.5-15.0 pe r c e n t 12.9 pe r c e n t o t h e r expenses 16.0-13.5 pe r c e n t 10.5 pe r c e n t taxes and l i c e n s e s 2.2 pe r c e n t premium tax (T.v.I.F) 2.0 p e r c e n t 2.0 pe r c e n t p r o f i t and c o n t i n g -e n c i e s 2.5 pe r c e n t 2.5 per c e n t However because o f a s h o r t - f a l l i n r e s p e c t of T.V.I.F. amounting to almost 2 p e r c e n t of l i a b i l i t y premiums, the l o a d i n g component i s i n r e a l i t y c l o s e r t o 32 pe r c e n t i n r e s p e c t 36 of l i a b i l i t y premiums. As noted by the Wootton Commission the expense f a c t o r d i d , and s t i l l does not compare f a v o u r a b l y Schedule VII -100-DT??F,Sr.N'CSS nr.TW~~M ?KS BOA?.O PROPOSALS AND CUA RATE INDICATIONS I . The available information about the Board's rate change propocal appears i n th e i r l e t t e r dated December 6, 1971, a copy of which faces this page. 'The elements of t h i s proposal and of the CUA rate calculations have been re-arranged 'in comparable form and are set out below. Comparison of P.atinq Elements for Accident Benefit Coveranc Board % of orem. 1970 CUA 1971 CUA Pure Loss cost and loss adjust- . . ment expense: At 1969 l e v e l : Death and d i s a b i -l i t y combined below $ 11.12 Medical, r e h a b i l i -t a t ion and funeral expenses combined below 3.00 Based s o l e l y on 19 70 data as at June 30, 1971 $ 8.57 62.1 ' % of orem. $ % of pre 51.0 $11.90 13.8 3.20 54.6 14.7 Projection f a c t o r s : Allowance for late reported claim (ISN'R) .65 Allowance for g r c *. • J. n g usage ci-accident benefits and transfer from.-SI l i a b i l i t y coverage .92 Allowance for i n f l a t i o n (loss cost projection) 0 10.14 4.7 6.7 73.5 included above included above .47 14.59 2.2 67.0 included above included above .47 15.57 71.5 expenses: Commission Premium tax Insurer i n t e r n a l expense 3.58 26.0 6.64 30.5 5.66 26.0 Underwriting P r o f i t and contingencies : Superintendent .35 Proposed reduc-tion - .28 . 07 Total $13.79 2.5 -2.0 j_5 100.0 , 55 0 ,'55 $21.78 2.5 0 2.5 .55 0 • . 51 100.0 $21.73 2.5 100.0 The difference between C.U.A. 1970 and 1971 elements in due to a transfer of approximately 4% unallocated loco expense for the' cover to claims expense. I. A. Submission to the B.C. Automobile Insurance 12. -101-w i t h the Saskatchewan scheme i n which the same component has always been l e s s than 20 p e r c e n t s i n c e i t s i n c e p t i o n i n 1946, and y e t the scheme, u n l i k e the p r i v a t e i n s u r e r s i n B r i t i s h Columbia, has been p r o f i t a b l e i n each of the l a s t f i v e y e a r s , 37 and i n t o t a l f o r i t s t w e n t y - f i v e years of o p e r a t i o n . Returning to an examination of the comparative l o s s -expense r a t i o s as s e t out i n Schedule VII the f i r s t s i g n i f i c a n t , p o i n t i s t h a t the expense r a t i o was reduced i n 1971 as compared w i t h 19 70 by 4.5 p e r c e n t . As i n d i c a t e d a t the bottom of the schedule, t h i s d i f f e r e n c e i s the r e s u l t of t r a n s f e r of claims expense"from the l o a d i n g , to the l o s s f a c t o r of the automobile i n s u r a n c e premium. Consequently the 30 p e r c e n t expense f a c t o r which was g i v e n e a r l i e r i n r e s p e c t of 1970 motor v e h i c l e premiums would a l s o have been a p p l i c a b l e to the 19 71 p o l i c y year i f a c o n s i s t e n t a c c o u n t i n g approach had been u t i l i z e d . I t should a l s o be r e c o g n i z e d t h a t w i t h i n the l o s s r a t i o t h e r e was p r o v i s i o n f o r a d j u s t i n g and l e g a l expenses so t h a t the 30 p e r c e n t expense f i g u r e i s r e a l l y m i s l e a d i n g , eg. expenses absorb more than 30^ 5 of the premium d o l l a r . L a s t l y , i t was l e a r n e d d u r i n g a telephone c o n v e r s a t i o n w i t h Mr. W.H. Day, . S e c r e t a r y of the Board, t h a t the a c c o u n t i n g method f o r the expense r a t i o which was employed by the C.U.A. i n 1971 i s s i m i l a r t o t h a t which was used by the Board, eg. the 26.0 p e r c e n t expense r a t i o s c o n t a i n e d s i m i l a r component expenses. -102-However one d i s s i m i l a r i t y between the Board's p r o p o s a l and t h a t of the C.U.A. i s q u i t e c l e a r . The Board suggested t h a t t h e r e be an a d d i t i o n a l 2 p e r c e n t r e d u c t i o n i n r e s p e c t of the underv/riting p r o f i t and contingency f a c t o r because of investment income which accrued on unearned premiums and delaye d payments of claims (see Schedule VI) . T h i s stand by the Board undoubtedly r e s u l t e d from the f i n d i n g of the Wootton Commission t h a t the average investment e a r n i n g s of F i r e and C a s u a l t y Insurance Companies was 4.45 p e r c e n t b e f o r e 3 8 tax. In r e p l y the C.U.A. s t a t e d t h a t the Automobile Insurance In d u s t r y as a whole s u f f e r e d l o s s e s i n each o f the l a s t t h r e e 39 y e a r s , and i n t h i r t e e n out of the l a s t twenty-one y e a r s . A l s o they claimed t h a t there had not been a d e t a i l e d study on the r e l a t i o n s h i p between investment income and ratemaking, but c u r r e n t l y such an examination i s be i n g conducted by o u t s i d e 40 e x p e r t s sponsored by the I.B.C. and the C.U.A. By way of c o n t r a s t the I.I.C. would have accepted a 27.5 per c e n t l o a d i n g f a c t o r (compared w i t h the Board's 26.5 pe r c e n t 41 and the C.U.A.'s 28.5 p e r c e n t ) , (see Schedule VIII), y e t i t a l s o recommended t h a t a d e c i s i o n , i n r e s p e c t of a investment income r e d u c t i o n p e r t a i n i n g to the p r o f i t and contingency item, be delayed u n t i l the forementioned study i s completed, and the 42 matter can be d i s c u s s e d as a separate i s s u e . To t h i s w r i t e r the p r o p o s a l i n r e s p e c t of the r e d u c t i o n i n the p r o f i t and contingency f a c t o r d i d , and does seem t o be a p e r t i n e n t p o i n t Schedule V I I I The independent insurance-Conference Proposed Rate 1';J"hc f a c t o r s used i n c a l c u l a t i n g t?ie A c c i d e n t B e n e f i t Prn:r:iu::i . : ' The Conference has c a r e f u l l y c o n s i d e r e d the f a c t o r s used i n "the B o a r d ; s c a l c u l a t i o n of an A c c i d e n t B e n e f i t premium. The Conference lias a l s o produced i t s ov/n c a l c u l a t i o n of i n d i c a t e d premium as p a r t o f i t s g e n e r a l assessment of r a t e l e v e l s f o r 197? as f o l l o w s I97O Loss Cost (IS months) 8 . 5 2 • add f o r I.B.N.R. and n e g a t i v e development of known cl a i m s 10% . 8 5 ' 1970 E s t . F i n a l Loss Cost 9 . 3 7 F a c t o r s f o r 1972 P r o j e c t i o n . I n f l a t i o n 2% per annum = 2% I n c r e a s e d useage 12^% per annum = " 12.5% T o t a l a nnual adjustment = "' 1 4 . 5 $ P r o j e c t e d two y e a r s = 1 4 . 5 x 2 = 29$ E s t i m a t e d 1972 Loss Cost 129 x 9 . 3 7 ='.*. '• " l 2 s 0 9 R e q u i r e d 1972 Premium w i t h 27%% . expense, p r o f i t and c o n t i n g e n c y allowance 1 2 , 0 0 x 100 ' = '•. 1 6 . 6 7 . 7 2 5 I n d i c a t e d Manual Premium . (rounded) = ' 1 7 . 0 0 As w i l l be noted, t h i s approach p a r a l l e l s , the g e n e r a l l y used t e c h n i q u e of e s t a b l i s h i n g r a t e s f o r o t h e r covers from the l o s s c o s t (Pure Premium) e x p e r i e n c e s e c t i o n o f the Green Book and s t a r t s w i t h the a c t u a l l o s s c o s t s per c a r i n s u r e d . The l o g i c i s not d i s s i m i l a r t o t h e Board's approach, the main p o i n t s of d i f f e r e n c e b e i n g i n the o m i s s i o n o f any r e f e r e n c e t o investment income, the r e c o g n i t i o n of i n f l a t i o n as a f a c t o r i n r i s i n g l o s s c o s t s , t h e s u b s t a n t i a l v a r i a n c e i n our e s t i m a t e of i n c r e a s e d useage and f i n a l l y the use of Conference expense and l o s s c o s t p r o v i s i o n s i n a r r i v i n g a t an a d j u s t e d premium f o r 1 9 7 2 . Source: I.I.C Submission to the B.C: Automobile Insurance Board, 1972, p. 7. 103--104-i n the d e t e r m i n a t i o n of the p r o f i t f a c t o r . In the w r i t e r ' s o p i n i o n an approach s i m i l a r t o t h a t employed by U t i l i t i e s Commissions would appear t o be l o g i c a l . I f t h i s method were u t i l i z e d then the Board would p r e s c r i b e an a l l o w a b l e r a t e of r e t u r n i n r e s p e c t of t o t a l income eg. both u n d e r w r i t i n g and investment income which would be i n c l u d e d i n the p r o f i t f a c t o r . So much f o r the percentage breakdown. As f a r as the a c t u a l premiums are concerned t h e r e was a wide v a r i a t i o n , eg. $14, $17, and $22, p e r t a i n i n g t o the p r o p o s a l s of the Board, the I.I.C., and the C.U.A., r e s p e c t i v e l y . A s i d e from the d i s p u t e over the investment income f a c t o r , which o n l y accounted f o r approximately 2 5^ and 50jz5, i n a comparison of the Board's p r o p o s a l w i t h t h a t of the I.I.C. and the C.U.A., r e s p e c t i v e l y , the overwhelming d i f f e r e n c e arose from the d e t e r m i n a t i o n of the l o s s c o s t which i n t u r n , i s the f o u n d a t i o n f o r the l o a d i n g f a c t o r . The l o s s p o r t i o n of the a c c i d e n t b e n e f i t premiums f o r the Board, the I . I . C , and the C.U.A., was $10.14 $12.09, and $15.57, r e s p e c t i v e l y . The reason f o r the d i f f e r e n c e s were the i n c l u s i o n of i n f l a t i o n a r y allowances, approximately 2 p e r c e n t f o r both the I.I.C. and the C.U.A., and a l a r g e r p r o v i s i o n f o r a n t i c i p a t e d i n c r e a s e d use of the a c c i d e n t b e n e f i t coverage, eg. both the I.I.C. and the C.U.A. recommended t h a t the allowance i n r e s p e c t of a n t i c i p a t e d usage should be approximately double the Board's percentage (see Schedules VII and V I I I ) . In A d d i t i o n 43 the C.U.A. wanted t o make p r o v i s i o n f o r c a t a s t r o p h i c c l a i m s . -105-In b r i e f , i t would appear t h a t the i n f l a t i o n f a c t o r was, and i s not an e s s e n t i a l element i n the a c c i d e n t b e n e f i t ratemaking process because the death, d i s a b i l i t y , and b u r i a l payments are f i x e d by s t a t u t e , and hence the o n l y b e n e f i t s a f f e c t e d by i n f l a t i o n would be m e d i c a l and r e h a b i l i t a t i o n expenses. However i t i s d o u b t f u l t h a t these l a s t two items n e c e s s i t a t e a 2 p e r c e n t i n f l a t i o n adjustment. In r e s p e c t of the o t h e r l o s s c o s t d i f f e r e n t i a l s , the l a s t , a c a t a s t r o p h i c claims allowance, would r e q u i r e an a c t u a r i a l a n a l y s i s beyond the scope of t h i s paper, and the second, a c c i d e n t b e n e f i t c l a i m s frequency w i l l be d i s c u s s e d at a l a t e r stage. Nine days a f t e r the h e a r i n g the Board e s t a b l i s h e d $15 as the f l a t r a t e f o r a c c i d e n t b e n e f i t i n s u r a n c e , and the I n d u s t r y was admonished, not to r a i s e t h e i r t h i r d p a r t y l i a b i l i t y r a t e s , above the a l r e a d y p r o j e c t e d 5.9 p e r c e n t i n -c r e a s e , i n o r d e r t o compensate f o r the decrease i n a c c i d e n t 44 b e n e f i t premiums. The w r i t e r l e a r n e d t h a t the reason f o r the a d j u s t e d premium f o r a c c i d e n t b e n e f i t s was due to the p a r t i a l acceptance by the Board of the I n d u s t r y ' s more con-s e r v a t i v e p r o j e c t i o n s i n r e s p e c t of unreported c l a i m s i n the 1970 45 p o l i c y year and i n c r e a s e d use a c c i d e n t b e n e f i t s i n 1972. Before l e a v i n g the t o p i c of automobile i n s u r a n c e premiums i t should be mentioned t h a t i n r e s p e c t of the f i r s t year i n which a c c i d e n t b e n e f i t s were i n c l u d e d i n the automobile p o l i -cy, 1970, the l o s s r a t i o of a c c i d e n t b e n e f i t s and l i a b i l i t y - 1 0 6 -coverages were 41 pe r c e n t and 82 pe r c e n t r e s p e c t i v e l y , and the combined l o s s r a t i o was 73 p e r c e n t . T h i s l a t t e r f i g u r e i s expected t o climb t o 75 per cent when the 1970 p o l i c y 46 year was completed on December 31, 19 71. I f the automobile i n s u r a n c e l o s s c o s t i s analyzed i n i t s t o t a l i t y , eg. every type of coverage - c o l l i s i o n , a l l p e r i l , l i a b i l i t y e t c . i s includ e d , the l o s s r a t i o s f o r 1968, 1969 and 1970 are 68.62 p e r c e n t , 76.94 p e r c e n t , and 74.20 p e r c e n t , 47 r e s p e c t i v e l y . These f i g u r e s combined w i t h the s t a t e d l o a d i n g f a c t o r of 30 p e r c e n t c o n f i r m t h a t the Automobile Insurance I n d u s t r y has not made an u n d e r w r i t i n g p r o f i t f o r the l a s t t h r e e y e a r s . In a d d i t i o n t h i s data i n d i c a t e s why the In d u s t r y has a n n u a l l y imposed h i g h e r motor v e h i c l e premiums, e s p e c i a l l y i n 1970, a f t e r the severe l o s s e s i n 1969. A c c i d e n t B e n e f i t Claim Frequency The next heading which i s scheduled f o r d i s c u s s i o n i s an examination o f the c l a i m s frequency i n r e s p e c t of the a c c i d e n t b e n e f i t i n s u r a n c e . A s t a r t i n g p o i n t f o r t h i s aspect of the p l a n i s the frequency of claims as s e t out i n the 1970 S t a t i s t i c a l Exhibit. For the 18 months of the 2 4 month p e r i o d covered by 1970 automobile p o l i c i e s , the frequency o f claims i n r e s p e c t 48 of a c c i d e n t b e n e f i t s was 1.44 per 100 cars i n s u r e d . In order to put t h i s f i g u r e i n cont e x t , an attempt was made t o determine the frequency of cl a i m s i n r e l a t i o n to b o d i l y i n j u r y l i a b i l i t y . -107-In the 1970 S t a t i s t i c a l Exhibit the b o d i l y i n j u r y and pro-p e r t y damage l i a b i l i t y c l a ims are combined, and hence i t was e s s e n t i a l t o o b t a i n an estimate of percentage of l i a b i l i t y c l a i m s which i n v o l v e d b o d i l y i n j u r y . In a l e t t e r r e c e i v e d from Mr. C.L. Wilcken, the I.B.C. a c t u a r y , he s t a t e d t h a t s t u d i e s showed t h a t i n o t h e r Canadian p r o v i n c e s b o d i l y i n j u r y c l aims frequency was 15 p e r c e n t of the t o t a l l i a b i l i t y frequency. In a d d i t i o n t o t h i s i n f o r m a t i o n t h i s w r i t e r performed h i s own a n a l y s i s , see Schedule IX, and d e r i v e d a c l a i m s frequency of. a pproximately 17.5 p e r c e n t . T h e r e f o r e g i v e n the t o t a l 49 l i a b i l i t y frequency of 8.2 i n 1969, which i s the l a s t year p r i o r t o the i n t r o d u c t i o n of a c c i d e n t b e n e f i t s one concludes t h a t the b o d i l y i n j u r y frequency per hundred cars l a y between 15% x 8.2 = 1.2 and 17.5% x 8.2 = 1.4, i n r e s p e c t of the 1969 p o l i c y y e a r . In attempting to estimate the frequency of automobile a c c i d e n t c l a i m s i n the coming years t h e r e are a number of f a c t o r s which must be c o n s i d e r e d . F i r s t l y , as c a l c u l a t e d i n Schedule E, approximately 45 p e r c e n t of a c c i d e n t v i c t i m s would make cl a i m s on l i a b i l i t y p o l i c i e s . Consequently i f the l i m i t e d a c c i d e n t b e n e f i t coverage completely e l i m i n a t e d the compensation gaps, and assuming the B i l l i s enacted, and a l l v i c t i m s are persuaded to u t i l i z e t h e i r a c c i d e n t b e n e f i t coverage, then the maximum a c c i d e n t b e n e f i t c l a i m frequency would pr o b a b l y l i e between •^TF X 1.2 = 2.6 and x 1.4 = 3.1. A l s o i t must be assumed -108-Schedule IX Frequency of B o d i l y I n j u r y Claims a) I n j u r i e s and Deaths i n B.C. - p o t e n t i a l l y ' covered by 1969 p o l i c y , 1969 23,077 1970 23,127 average 23,102 1969 T o t a l Number of Claims i n r e s p e c t of P r i v a t e Passenger Cars No. Cars Insured 668,514 Claims F r e q . per 8.2 100 cars i n s . 54,818 T h e r e f o r e i f every i n j u r y and death were claimed b o d i l y i n j u r y c l a i m s as percentage of t o a l l i a b i l i t y c l a i m s would equal 23 102 i ) ' = 4 2 1 % 1 ; 54,818 4 Z . ± o but at l e a s t some cl a i m s i n r e s p e c t of i n j u r i e s and deaths would be made on other i n s u r a n c e c a t e g o r i e s eg. commercial v e h i c l e s , farmers' v e h i c l e s , and l o g g i n g t r u c k s , t a x i s , buses e t c . i i ) hence a 3% r e d u c t i o n from 42.1% to 39.0% would not be unreasonable, eg. 4,113 l i a b i l i t y c laims i n r e s p e c t of commercial and farmers v e h i c l e s i n 1969. i i i ) T h e r e f o r e estimated maximum r e c o v e r y r a t e i n r e s p e c t of p r i v a t e passenger coverage = 39%. b) A l s o a study by the Wootton Commission showed t h a t only 623 of 1253 i n j u r y and death v i c t i m s r e c o v e r e d any i ) s o r t of t o r t s e t t l e m e n t , eg. 49.5%., but death b e n e f i t s were g i v e n too much weight, and i i ) hence p o p u l a t i o n r e s u l t would be c l o s e r t o 49 %. -109-Schedule IX - Continued (2) In a d d i t i o n some of the forementioned t o r t r e c o v e r i e s would be p a i d by the T r a f f i c V i c t i m s Indemnity Fund and hence would not show up as an i n s u r a n c e c l a i m . From f i g u r e s p r o v i d e d by the Wootton Commission an est i m a t e can be made of the e x t e n t of these r e p a r a t i o n s T o t a l T.V.I.F. b e n e f i t s i n case of s e r i o u s or f a t a l i n j u r i e s i n r e s p e c t of the sample = $56,372 or 9% of t o t a l compensation i n these cases. Average c l a i m s i z e i n r e l e v a n t y e a r , eg. 1963 Assumed t h a t c l a i m s would be p a i d i n p e r i o d from ,June 1/63 to May 31/65 - hence Amounts p a i d i n 1963-64-65 Average = claims i n 1963-64-65 510,300 + 614,538 2 243 + 220 $562 ,469 233 Average T.V.I.F. Claim = $2,424 T h e r e f o r e approximate number of T.V.IF b e n e f i t s i n r e s p e c t c s e r i o u s i n j u r y and f a t a l i t y cases i n the Wootton Commission sample _ $ 5 6 f 3 7 2 $ 2,424 J ' - i f an estimate of o t h e r T.V.I.F. c l a i m s was made i n r e s p e c t of non-serious i n j u r y cases the f i g u r e would pr o b a b l y not exceed 5-7 c l a i m s . - consequently 30_ T.V.I.F. claims i n t o t a l p e r t a i n i n g to the Wootton Commissions sample would be t h i s w r i t e r ' s b e s t e s t i m a t e . -110-Schedule IX _ c o n t i n u e d (3) i i i ) hence t h i s would r e s u l t i n a , ?c.~, = 2.5% ( t o t a l i n j u r y + death r e d u c t i o n i n expected p e r s o n a l i n j u r y l i a b i l i t y c l a i m s . i v ) Hence es t i m a t e d percentage of t r a f f i c v i c t i m s r e c o v e r y -i n g compensation v i a t h i r d p a r t y claims = 46.5% However t h i s percentage 46.5% i s probably s t i l l too h i g h because of r e c o v e r i e s p a i d out of the defendant's own pocket or v i a the f i n a n c i a l s e c u r i t y f i l e d w i t h the Motor V e h i c l e D i v i s i o n , eg. 138 cases i n 1969. Consequently a f u r t h e r r e d u c t i o n of 1.5% may be a p p r o p r i a t e . T h e r e f o r e e s t i m a t e d number of t r a f f i c v i c t i m s r e c o v e r i n g on t h i r d p a r t y , b o d i l y i n j u r y c l a i m s , v) i s 45% c) Hence percentage of t o t a l l i a b i l i t y frequency which p e r t a i n s to b o d i l y i n j u r y i ) = 39% x 45% = 17.5% Sources: 1) 1969 and 1970 Annual Reports of the B.C. Super-i n t e n d e n t of Motor V e h i c l e s tP. 1 9 6 9 - p L 3 1 , 19/0 P.H14. ;2) B.C. Royal Commission on Automobile  Insurance t P. 115, 121 and 456^. 3) 1971 S t a t i s t i c a l  E x h i b i t , p. 6, 24 and 36. t h a t b o d i l y i n j u r y per 100 i n s u r e d c a r s w i l l remain r e l a t i v e l y s t a b l e , as i t has been over the p a s t f i v e years (see Schedule X') . Quite o b v i o u s l y the maximum c l a i m frequency, which w i l l be assumed t o be 2.85, eg. average of the two e s t i m a t e s , w i l l not be reached, assuming i n j u r i e s and deaths per i n s u r e d car remains r e l a t i v e l y s t a b l e , because of some other c o n s i d e r a t i o n s . The p r e s e n t l i m i t e d a c c i d e n t b e n e f i t coverage excludes c e r t a i n v i c t i m s from compensation, eg. impaired d r i v e r s , those r e c e i v i n g 50 workmen's compensation, e t c . , some v i c t i m s w i l l not f i t the 51 d e f i n i t i o n of i n s u r e d as s e t out i n the D e f i n i t i o n S e c t i o n , and o t h e r s w i l l s u f f e r i n j u r i e s which do not "wholly and c o n t i n u o u s l y " d i s a b l e them beyond the one week w a i t i n g p e r i o d , 52 and y e t they would be e l i g i b l e f o r t o r t awards. In a d d i t i o n as i l l u s t r a t e d by Schedule XI t h e r e are s t i l l r a t h e r l a r g e numbers of cl a i m s being p a i d by the T r a f f i c V i c t i m s Indemnity Fund which i n d i c a t e s t h a t a s i z e a b l e percentage o f d r i v e r s r e -main u n i n s u r e d , and hence c a s u a l t i e s i n v o l v i n g such d r i v e r s may not q u a l i f y f o r a c c i d e n t b e n e f i t s . Consequently i t i s r a t h e r d i f f i c u l t t o estimate the expected c l a i m s frequency i n r e s p e c t o f a c c i d e n t b e n e f i t s . The I.I.C. i n t h e i r b r i e f s t a t e t h a t a 25-30 per i n c r e a s e over the next 53 few years i s not u n l i k e l y , and t h i s would mean a frequency of 130 approximately 1.9 per 100 ca r s i n s u r e d , eg. (J~0Q x 1.44). From Mr. Ian Henley i t was l e a r n e d t h a t some cl a i m s which -112-Schedule X R e l a t i o n s h i p o f I n j u r i e s and Deaths  to Cars Insured i n B r i t i s h Columbia 1966 - 1970 Year I n j u r i e s p l u s Deaths Cars Insured R a t i o 1966 19,969 536,256 .37 1967 20,059 569,223 .35 1968 21,519 616,759 .35 1969 23,057 668,514 .35 1970 23,127 720,000* .32 es t i m a t e d . Sources. 1) 1971 S t a t i s t i c a l E x h i b i t p. 6 2) 1970 Annual Report of the Superintendent of Motor V e h i c l e s p. H14 Schedule" XI T r a f f i c V i c t i m s Indemnity Fund E x p e r i e n c e 1969 - 1971 Year P o t e n t i a l Claims R e s e r v e Claims P a Y m e n t s T o t a l T o t a l R e s e r v e Outstanding Processed J Claims and Payments 1969 198 $1,086,850 829 $1,390,713 1,027 $2,475,569 1970 200 700,600 408 317,379 608 1,017,979 1971 220 939,250 302 54,884 522 994,134 * Approximately 90% of these claims w i l l r e c o v e r Source: Mr. K.F.V. Malthouse - D i r e c t o r of T.V.I.F, -113-p r o p e r l y belonged i n the a c c i d e n t b e n e f i t c a t e g o r y , were p l a c e d i n the t h i r d p a r t y l i a b i l i t y heading because of u n c e r t a i n t i e s i n r e s p e c t of the new law, and hence he f e e l s the 1.44 frequency u n d e r s t a t e s the a c t u a l e x p e r i e n c e f o r 1970. A l s o as mentioned e a r l i e r the l i b e r a l i n t e r p r e t a t i o n of the p r o v i s i o n s of the Act, and the apparent ease w i t h which v i c t i m s were, and are o b t a i n i n g d o c t o r ' s c e r t i f i c a t e s , i n order to be c l a s s i f i e d as "wholly and c o n t i n u s o u l y " d i s a b l e d may i n d i c a t e , as i m p l i e d by Mr. Henley, t h a t more t r a f f i c v i c t i m s are e l i g i b l e f o r d i s a b i l i t y b e n e f i t s then one might suspect, eg. the c a s u a l t y may o n l y have a t w i s t e d knee which prevents him from working at h i s manual l a b o u r i n g j o b . A t h i r d f a c t o r i s t h a t some lawyers have been r e l u c t a n t to accept a c c i d e n t b e n e f i t s on b e h a l f of t h e i r c l i e n t s , because of t h e i r monetary i n t e r e s t i n l i a b i l i t y c l a i m s . In a d d i t i o n as i l l u s t r a t e d by the Adrian vs Enns case,some v i c t i m s want the blameworthy p a r t y to pay, even i f they have a r i g h t to a c c i d e n t b e n e f i t s , but s i n c e the l e g i s l a t i o n w i l l be amended, both of these blockades to a c c i d e n t b e n e f i t claims w i l l be removed. M e d i c a l and r e h a b i l i t a t i o n b e n e f i t s are a l s o important i n r e s p e c t of the a c c i d e n t p o l i c y . Such matters as the h o s p i t a l c o - i n s u r a n c e charge, ambulance c o s t s , drug expenses, and r e -h a b i l i t a t i o n fees over $50 are a l l covered, and t h e r e f o r e the p o t e n t i a l claims frequency i s q u i t e h i g h . -115-T h i s w r i t e r s p e c u l a t e s t h a t once t r a f f i c v i c t i m s become more f a m i l i a r w i t h the b e n e f i t s of a c c i d e n t i n s u r a n c e , g i v e n the amendment i n the l e g i s l a t i o n , the continued l i b e r a l i n t e r -p r e t a t i o n of the h o - f a u l t p r o v i s i o n s , and the continued r e l -a t i v e ease i n o b t a i n i n g a d o c t o r ' s c e r t i f i c a t e i n r e s p e c t of t r a f f i c i n j u r i e s , a c l a i m s frequency of 2.2 - 2.3 per 100 i n s u r e d cars i n the next few years would not be unreasonable, eg. a 50 p e r c e n t i n c r e a s e . Delays and L e g a l Costs Two aspects of the t o r t system which g r e a t l y concerned the Wootton Commission were the l e g a l c o s t s and d e l a y s i n -v o l v e d i n the compensation p r o c e s s . The Commissioners found t h a t on average approximately 16 p e r c e n t of t o t a l payout by the 54 i n s u r e r was r e c e i v e d by the c l a i m a n t ' s lawyer. Research by the Wootton Commission a l s o r e v e a l e d t h a t the median time from the date of the a c c i d e n t to the date of f i n a l compensation was 5 months, 9 months, and 4 months i n cases of f a t a l i t i e s , 55 s e r i o u s i n j u r i e s , and minor i n j u r i e s ^ r e s p e c t i v e l y . I f a s u i t was i n v o l v e d then the d e l a y s i n c r e a s e d to 10 months, 21 months and 16 months, i n cases of f a t a l i t i e s , s e r i o u s i n j u r i e s 56 and minor i n j u r i e s , r e s p e c t i v e l y . The l o n g e r w a i t i n g p e r i o d i n r e s p e c t of s e r i o u s i n j u r i e s i s p r o b a b l y due a d e l i b e r a t e d e c i s i o n by the c l a i m a n t ' s lawyer to delay the s e t t l e m e n t or t r i a l u n t i l h i s c l i e n t ' s i n j u r i e s have s t a b i l i z e d because he -116-knows t h a t once a s e t t l e m e n t or award i s reached, there i s no second chance i f h i s c l i e n t s u f f e r s a r e l a p s e . I f the t r a f f i c v i c t i m i s a b l e to meet the e l i g i b i l i t y requirements of the a c c i d e n t b e n e f i t p r o v i s i o n s then h i s concern over d e l a y s and l e g a l c o s t s have been l a r g e l y e l i m i n a t e d . The Insurance Act r e q u i r e s t h a t i n i t i a l b e n e f i t s i n r e s p e c t of d i s a b i l i t y b e n e f i t s are to be p a i d w i t h i n 30 days a f t e r p r o o f of a c l a i m i s r e c e i v e d by the i n s u r e r , and a maximum d e l a y of 60 days i s p e r m i t t e d i n r e s p e c t of death, 57 b u r i a l , m e d i c a l , and r e h a b i l i t a t i o n b e n e f i t s . I t a l s o should be noted t h a t the i n s u r e d has 30 days i n which to g i v e n o t i c e to h i s i n s u r e r i n r e s p e c t of an a c c i d e n t b e n e f i t c l a i m , and 9 0 days from, the date of the a c c i d e n t to prove h i s c l a i m . A c c o r d i n g to Mr. Malthouse, the I.B.C. Manager f o r B r i t i s h Columbia, the i n s u r e r has no d i f f i c u l t y i n p a y i n g the b e n e f i t s w i t h i n the p r e s c r i b e d p e r i o d , and i n f a c t i s o n l y too w i l l i n g t o p rocess the c l a i m as q u i c k l y as p o s s i b l e . Mr. H. Midgley, an I n s p e c t o r of Insurance f o r B r i t i s h Columbia, c o r r o b o r a t e d t h i s statement and he i n d i c a t e d t h a t the o n l y complaints he has r e c e i v e d i n r e s p e c t of a c c i d e n t b e n e f i t s r e s u l t e d from the f a i l u r e of the v i c t i m to e s t a b l i s h p r o o f of h i s c l a i m . Mr. Midgley a l s o s t a t e d t h a t the i n s t a n c e s of f r a u d or c o l l u s i o n have been no g r e a t e r than i n r e s p e c t of any o t h e r type of i n s u r a n c e coverage, eg. automobile c o l l i s i o n and comprehensive, f i r e e t c . -1-17— Mr. Malthouse, i n response to a q u e s t i o n p e r t a i n i n g to lawyer involvement i n a c c i d e n t b e n e f i t payments, i n d i c a t e d t h a t to h i s knowledge no such cases had come to h i s a t t e n t i o n . 59 However i n an i n t e r v i e w w i t h a prominent i n s u r a n c e lawyer, Mr. G.R. Schmitt, i t was l e a r n e d t h a t the d r a f t i n g of s e c t i o n 6 0 B, which p e r t a i n s to a c c i d e n t b e n e f i t s c o u l d be d i s c r i b e d as "a dog's b r e a k f a s t " , eg. there are a number of u n c l e a r d e f i n i t i o n s , but because of the expense a s s o c i a t e d w i t h a s u i t i n r e s p e c t o f such i s s u e s , the v i c t i m was being a d v i s e d t o sue i n t o r t . But as f a r as he c o u l d r e c a l l no lawyer had become i n v o l v e d i n a d i s p u t e over payments a f t e r the e l i g i b i l i t y i s s u e had been s e t t l e d . Consequently the twin d e f e c t s i n r e l a t i o n t o the l e g a l a spects of the t o r t compensation system appear to have been l a r g e l y overcome p r o v i d i n g the t r a f f i c v i c t i m can q u a l i f y f o r a c c i d e n t b e n e f i t s . Inadequacy of Compensation i n Respect of F a t a l i t y and S e r i o u s  I n j u r y Cases. The Wootton Commission underscored the f i n a n c i a l s t r a i n i n r e s p e c t of t r a f f i c v i c t i m s who were s e r i o u s l y i n j u r e d or k i l l e d . These i n d i v i d u a l s s u f f e r the l a r g e s t economic l o s s , and r e c o v e r a r a t h e r low percentage of t h a t l o s s . , eg. 44 p e r c e n t and 20 p e r c e n t , i n cases of s e r i o u s i n j u r y and death, r e s p e c t -61 i v e l y . I t i s to be presumed t h a t the c u r r e n t h y b r i d scheme -118-p r o v i d e s at l e a s t minimal b e n e f i t s i n most cases of death o r t o t a l d i s a b i l i t y . In a d d i t i o n to these b e n e f i t s the inn o c e n t v i c t i m can a l s o sue i n t o r t to re c o v e r " f u l l " compensation, and i n these cases the a c c i d e n t b e n e f i t s t i d e him over the long w a i t i n g p e r i o d . A d m i t t e d l y the minor i n j u r y cases may not be e l i g i b l e f o r weekly i n d e m n i t i e s , but they w i l l be f u l l y compensated f o r a l l m e d i c a l and r e h a b i l i t a t i o n expenses, and the Wootton Commission showed t h a t they r e c o v e r a h i g h percentage of the economic l o s s v i a the t o r t s ource, 6 2 eg. 85 p e r c e n t . In r e s p e c t of n e g l i g e n t , minor i n j u r y v i c t i m s i t i s p o s s i b l e t h a t they are r e c e i v i n g some weekly indemnity payments, i f t h e i r i n j u r y "wholly and c o n t i n u o u s l y " p r e v e n t s them from working f o r a d u r a t i o n o f lon g e r than one week. U n f o r t u n a t e l y without a comprehensive survey i t i s i m p o s s i b l e t o s t a t e what percentage of t r a f f i c v i c t i m s r e c o v e r e i t h e r a c c i d e n t b e n e f i t s or t o r t s e t t l e m e n t s or awards, or t o what e x t e n t t o t a l economic l o s s i s b e i n g r e c o v e r e d , but c e r t a i n l y the percentage and ext e n t of r e c o v e r i e s i s g r e a t e r than under the p r e v i o u s pure t o r t system. Court Congestion Another reason f o r the p r o p o s a l of the Wootton Commission to a b o l i s h the f a u l t system i n r e s p e c t of motor v e h i c l e c l a i m s was the concern over c o u r t c o n g e s t i o n . The commissioners r e -- I m -p o r t e d t h a t although o n l y 6.3 p e r c e n t of the motor v e h i c l e a c t i o n s commenced went to t r i a l , such claims and t r i a l s i f 6 3 e l i m i n a t e d would r e l i e v e c o u r t c a l e n d a r s t o some ext e n t . To put t h i s problem i n p e r s p e c t i v e i t was d e s c l o s e d d u r i n g the r e c e n t swearing i n of a B r i t i s h Columbia Supreme Court J u s t i c e , t h a t t h e r e was c u r r e n t l y a two year b a c k l o g of 64 cases. In o r d e r t o o b t a i n some data i n r e s p e c t of the impact of the motor v e h i c l e a c c i d e n t s on the B r i t i s h Columbia Supreme Court the w r i t e r undertook some i n v e s t i g a t i o n s . F i r s t l y the month of January was c a r e f u l l y s t u d i e d f o r the p e r i o d 196 8-19 70 i n order t o l e a r n what percentage of automobile a c c i d e n t f i l e d where going to t r i a l eg. a t r i a l i n which a d e c i s i o n i s made by a judge and j u r y , or a judge as opposed t o a consent judgment reached by the p a r t i e s themselves. These are the r e s u l t s : 1968 6.2% 1969 9.3% 1970 10.0% A l s o i n r e s p e c t o f 1969 and 1970, e s p e c i a l l y 1970 there are a number of cases i n which a f u l l t r i a l may s t i l l take p l a c e . The second aspect o f t h i s minor study was to determine the percentage of t o t a l a c t i o n s f i l e d i n Vancouver Supreme Court R e g i s t r y which p e r t a i n e d t o motor v e h i c l e a c c i d e n t s . A th r e e -120-month sample, eg. January, May and September, was conducted i n r e s p e c t of the 1967 - 1971 p e r i o d . The percentages f o l l o w : 1967 40.3% 1968 37.4% 1969 35.6% 1970 33.3% 1971 31.9% However d e s p i t e the d e c l i n e i n the percentage of motor v e h i c l e c laims t o t o t a l c l a i m s , the a b s o l u t e number of claims has climbed. I t s h o u l d be noted t h a t the - overwhelming m a j o r i t y of c l a i m s f i l e d i n the Supreme Court R e g i s t r y would p e r t a i n t o s e r i o u s i n j u r i e s o r deaths, because u n l i k e the Small Debts Court, having l i m i t e d j u r i s d i c t i o n of up to $500, or the County Court, having l i m i t e d j u r i s d i c t i o n up t o $5,000, u n l e s s the p a r t i e s otherwise consent, the Supreme Court has u n l i m i t e d j u r i s d i c t i o n , but the lawyer's fees are h i g h e r than i n the f i r s t two C o u r t s . T h e r e f o r e i t i s rea s o n a b l e t o assume t h a t most s e r i o u s i n j u r y or death cases would be f i l e d i n the Supreme Court, because minor i n j u r y claims and p r o p e r t y damage d i s p u t e s c o u l d be handled more q u i c k l y and cheaply i n e i t h e r of the o t h e r two Courts. A l s o one should be aware of the f a c t t h a t a t r a f f i c v i c t i m has a one year s t a t u t o r y l i m i t a t i o n p e r i o d i n which t o f i l e h i s c l a i m , commencing w i t h the date of the 6 5 a c c i d e n t . Hence the year i n which the i n j u r y or death was -121-s u f f e r e d , p r o b a b l y w i l l not match the year i n which the c l a i m was f i l e d , eg. t r i a l i s o n l y a l a s t r e s o r t i f a s e t t l e -ment cannot be reached. The r e s u l t s f o l l o w : R a t i o of Claims t o C a s u a l t i e s i n B.C. Year I n j u r i e s Average I n j u r i e s Claims F i l e d R a t i o of & Deaths & Deaths over 2 i n Jan., May & Claims t o y r s . Sept. I n j u r i e s & Deaths 1966 19,970 20.059 1967 20,059 20,789 470 2.3% 1968 21,519 22,298 466 2.3 1969 23,077 23,102 491 2.2 1970 23,127 23,052 505 2.2 1971 22,976 505 2.2 Sources: 1) Monthly and Annual Reports of Dept. of Motor  V e h i c l e s , 2) Supreme Court Cause Books - Vancouver Schedule XII Consequently i t would appear t h a t i n s p i t e of the i n t r o d u c t i o n of a c c i d e n t b e n e f i t i n s u r a n c e t h e r e has been no a p p r e c i a b l e e f f e c t on the number of s e r i o u s i n j u r y and f a t a l i t y c l a i m s or t r i a l s , and these are cases i n which the v i c t i m s s h o u l d be e l i g i b l e f o r a c c i d e n t b e n e f i t s . T h e r e f o r e one must conclude t h a t lawyers and/or t h e i r c l i e n t s i n such cases are not s a t i s f i e d w i t h the l i m i t e d a c c i d e n t b e n e f i t s and sue i n t o r t i n order to r e c o v e r f u r t h e r damages. -122-C o n c l u s i o n The l i m i t e d a c c i d e n t b e n e f i t l e g i s l a t i o n has c e r t a i n -l y c l o s e d the compensation gap and e l i m i n a t e d d e l a y s i n payments and lawyer fees i n i n s t a n c e s i n which the t r a f f i c v i c t i m q u a l i f i e s and e l e c t s to take advantage of these b e n e f i t s . However the scheme has not s o l v e d the problem of r i s i n g automobile i n s u r a n c e premiums, nor the c o s t s , delays and c o u r t c o n g e s t i o n i n v o l v e d w i t h the l i a b i l i t y c l a i m s . T h e r e f o r e from a p r a c t i c a l s t a n d p o i n t the c u r r e n t motor v e h i c l e compensation i s an improvement over the pure t o r t system, but s t i l l l eaves a good d e a l of room f o r improvement. CHAPTER VI TRAFFIC SAFETY - WITH PARTICULAR REFERENCE  TO DETERRENTS TO MOTOR VEHICLE ACCIDENTS I n t r o d u c t i o n T h i s chapter focuses on the c u r r e n t knowledge i n r e s p e c t of the c a u s a t i o n and d e t e r r e n c e of motor v e h i c l e a c c i d e n t s . Of p a r t i c u l a r i n t e r e s t i s the r a m i f i c a t i o n s of a compulsory l i a b i l i t y scheme and/or a p a r t i a l or t o t a l n o - f a u l t compens-a t i o n scheme i n r e l a t i o n t o t r a f f i c s a f e t y . U n f o r t u n a t e l y n e i t h e r the data nor the resources are a v a i l a b l e t o e s t a b l i s h the p r e c i s e e f f e c t s of the compulsory, l i a b i l i t y and l i m i t e d a c c i d e n t i n s u r a n c e p l a n which became e f f e c t i v e on January 1, 1970 i n B r i t i s h Columbia."*" Conse-q u e n t l y the w r i t e r was f o r c e d to r e l y on s t u d i e s performed i n o t h e r j u r i s d i c t i o n s i n North America, and on the o p i n i o n s of experts as to how these experimental f i n d i n g s may apply to the B r i t i s h Columbia environment. Consequently the primary purpose of the review of the l i t e r a t u r e i s to e l i m i n a t e some of the myths about motor v e h i c l e a c c i d e n t s and to form a t e n t a t i v e b a s i s f o r the a n a l y s i s o f the d e t e r r e n c e of road a c c i d e n t s . In a d d i t i o n some s t a t i s t i c s i n r e s p e c t of the B r i t i s h Columbia a c c i d e n t p i c t u r e w i l l be mentioned. -123--124-P e r t a i n i n g t o t h i s l a s t p o i n t , c e r t a i n f a c t s should be c l a r i f i e d at t h i s stage. By law each a c c i d e n t i n v o l v i n g death, i n j u r y , or p r o p e r t y damage i n excess of $200 must be r e p o r t e d to the p o l i c e , and they i n t u r n p r o v i d e a form (see Schedule XIII)' to be f i l l e d out by a l l d r i v e r s who were i n v o l v e d i n the 2 a c c i d e n t . The a c c i d e n t r e p o r t cannot be used to l a y charges under e i t h e r the Criminal Code, nor under the Motor Vehicle Act, nor can i t be u t i l i z e d by another p a r t y as evidence i n 3 a c i v i l s u i t . I t s onl y f u n c t i o n i s to p r o v i d e the Motor V e h i c l e Department and the P o l i c e w i t h s t a t i s t i c a l i n f o r m a t i o n i n o r d e r t o reduce the number of highway a c c i d e n t s . Unfortun-a t e l y i n s p i t e o f the commendable purpose of these forms they do not c u r r e n t l y p r o v i d e some e s s e n t i a l , and r e l i a b l e i n f o rm-a t i o n . The d r i v e r s i n s p i t e o f t h e i r immunity w i t h r e s p e c t t o t h e i r d e c l a r a t i o n s are not always prepared t o j e o p a r d i z e t h e i r p o s i t i o n s , and i n at l e a s t some cases w i l l be unable t o r e c a l l what r e a l l y o c c u r r e d . These flaws are not c o r r e c t e d by the p o l i c e because i n the m a j o r i t y of the cases they do not atten d the a c c i d e n t scene, and even i f they do they a p p a r e n t l y p r o v i d e very l i t t l e u s e f u l i n f o r m a t i o n i n r e s p e c t of the p a r t i c u l a r s of the a c c i d e n t i n the s e c t i o n which they are r e q u i r e d to complete.^ However i t i s understood t h a t a more e f f e c t i v e r e p o r t i n g system i s under i n v e s t i g a t i o n by the Motor V e h i c l e s Department,^ and t h e r e f o r e a more r e l i a b l e f o u n d a t i o n may be forthcoming I in CN rH I H H H X 3 TS o CO K . C . M . i ' . D E T A C H M E N T , B.C. Organi/.ed. • Unoi'cani/.cd. • r i ; o v : : \ < : K Ov ^VEHICLE ACCIDENT F O R R . C . M . P . U S E O N I A ' This report shall be without prt'j:i<!i tendent of MtMor-vchiclcs, and of polio for publ ic inspection. shall be for (lie in fo imat ion of the Superin-[orccs in this Prov ince, and shal l not be open [z::i L: RETORT No. 1 TIME :m,I LOCATION o f ACCIDENT Date of accident , 19 Day O f Q a.m. • Dayl ight week Time— • p.m. • Dark _ _ „ B.C. (Ci ty or town.) O n — _ _ Street at (Name. ) (P lock number or other street.) // Accident Occurred in the Country road or On highway miles of , B.C. (Name. ) (Nor th , south, east, west.) (C i ty or town.) Accident I N V O L V E D ( M a r k which.) • Another motor-vehicle. • Pedestrian. • Non-collision. • Bicycle. • Overturned. • Motor-cycle. • Fixed object • Other object.. • .Animal. • Train. (Descr ibe . ) (Descr ibe.) Damaged Clearance Sticker No F O R D E P A R T M E N T A L U S E O N L Y _ 3 _ . 1st [ | M V E MICLE Dr iven by me (Pr int fu l l name.) Driver's - - - _ Licence N o (Address. ) (Ci ty or town.) • Male. Chauffeur's Age • Female. Licence No Phone No (Years . ) Driving Estimated experience damage $ $ $ (Years . ) (Veh ic le N o . 1.) (Other vch ic lc (s ) . ) (Other property.) Motor-vehicle Province Licence No or State Type (Passenger, bus. truck, motor-cycle, etc.) Owned by (Pr int ful l name.) (Address . ) S E A T B E L T S : INSTALLED ^ g (Ci ty or town.) IN U S E D R I V C R : Y E S ' D N A D  i b Passenger: Yes. • No. • Number of passengers in this Total number of vehicles vehicle (without driver) _ in this accident 1 S T A T E C A R D C O L O U R : • Pink. • Yellow. • Green. . I —. ^ • If white, give number (j Name of insurance company_ _ A N Name Policy No of agent.. r Date policy Address ~ expires : of agent.. E ( D a y , month, year.) 4 2nd VEHICLE Motor-vehicle Licence No.. Driven by (Pr int fu l l name.) Driver1*: C H E C K W I T H X E A C H I T E M 1 2 • o o • D D D • D • a • Co...lillon of Vehicle! f] t. Apparent ly good. D 2. N o chains (sl ippery road) . • 3. Brakes defective. • 4. Steering mechanism defective. • 5. Head-l ights d im. • 6. Puncture or blowout. O 7. Head lights out (both l ights) . • 8. Tail- l ight out or obscured. • 9. G la r ing head-lights. • 10. Head-l ights out (one l ight) . a 11. Other defects. A Vehicle. 1 2 3 • Q D • a a • • • • • • a • a n a a D Direction of Travel 1. Go ing straight. 2. Turn ing left. 3. Turn ing right. 4. Slowing down or stopping. 5. Hacking (not to or from cu rb ) . 6. Sk idd ing. 7. Leaving curb ( including backing) . 8. M a k i n g U-turn. 9. Overtak ing. 10. Stopping (not at curb or off paved s t r ip) . 11. Overtaking on right side. 12. Overtaking on left side. 13. Avo id ing object or pedestrian. M.inner of Collision • I. Ang le col l is ion. O 2. Head-on col l is ion or head-on sidc-swipe. D 3. Rear-end co l l is ion. • 4. Packed into oi l ier vehicle. • 5. Side-swiped other vehicle going same direct ion. v< 1 hi 2 Ic 3 What Drivers Were Doing • • a 1. N o improper dr iv ing. a • a 2. Drove oft roadway. • a • 3. D id not have right of way. • • • 4. C a r standing in roadway (not parked) . • • • 5. Fol lowing too close. a • Q 6. O n wrong side of road. Q • • 7. Fai led to signal. D • • 8. 'Dirough street—did not stop. a Q a 9. Passing at intersection. a • a 10. Exceeding speed l imit. Q •  11. Careless dr iv ing. • O • 12. Cutt ing in. • • a 1.1. Car ran away. a O • II. Passing on curve or hi l l . • • a 15. Passing on wrong side. • • • 16. Hi t and run. o a a 17. Ra i l road—fa i led to stop. a a • IS. Cutt ing left corner. a a a 19. Parked legally. a Q a 20. Drove through school zone. • • a 21. Drove through safety /one. Weather Condition. a i . C lear . • 4. Fog or mist. a 2. P a i n . • 5. Snow. • .1. C loudy . D 6. Smoke or dust. FOR DEPART: )>ESCRH!1.\ <T.\I. U S E O N L Y <l\6 ACCIDENT c - = u. S. a. n l a o 2 a a 1 • • A a a 5 Tr..(r..- c„ ol N o control present. Pol ice officer. Au tomat ic traific s ignal . Stop signs. Warn ing signs, slow signs, etc. .1. Condition of Driver and Pedestrian • I-• 2. • 3. • 4. • 5. a «. Apparent ly no rma l . Extreme fatigue. Mad physical defect. Confuse. ! by traffic. Ab i l i t y impai red. No t known . G K o a d C u n t i i l i o n • I. N o r m a l . • 2. Defect in roadway. • 3. Obstruct ion in road. • 4. Road under repair. Q 5. Obstruct ion m.>t marked or l ighted. • fi. Other. H ryl.e of Ito.id Itoad Surface B • 1. Asphal t . j] a 1 D r y surface. «* o 2 Grave l . • 2 Wet stuface. • S! Concrete. u 3 Icy surface. a 4. Ear th. • 4. Loose sand or a 5. Pr ick or cobble. gravel . o 6. Other. • 5. Snowy surface. D 6. M uddy sin face. I.i|;ht Condition. • 1. Dayl ight. O 2. Darkness. O 1. Art i f ic ia l l ight—good. Q 4. Dusk or semi-darkness. O 5. Art i f ic ia l l ight—poor. . n o l n i r n i . a 2. D 3. O 4. a 5. • 6. a 7. a 8. • '). a 10. n 1 1. a 12. D 1.1. Q II. tj 15. • In. • 1. n 2 • V a 4. u 5. u 6. W lint 1*. Not known . 2 Crossing at intersect ion—no signal. In street, not at intersection. Coming f rom behind parked or moving car. Crossing at intersection with signal. Crossing street d iagonal ly , not at inter-section. Walking, on or along highway. Claying in street. Crossing ;it intvisection against signal. Not on roadway. Gett ing on or ulf another vehicle. Riding or hitching on vehicle. Work ing on car or roadway. Crossing intersection d iagonal ly . In pcdest i ian c jov . walk. Standing in safety-isle. I{:iilr<i.i<! Crootnjc Unguarded crossing. Automat ic signal. Guarded cro:,*,ing, man on duty. Gates not down. Driver disregarded s ignal . Signal not given. 3rd VEHICLE Motor-vehicleLicence No.... • I Driven by |_ (Pr int full name.) IMPORTANT Ir.dicatc on this diagram wlr;! happened. I I _ - - - " * I S e l e c t s k e t c h t h a t r e s e m b l e s m o s t c l o s e l y t h e s e c t i o n o f r o a d o r s t r e e t w h e r e a c c i d e n t o c c u r r e d . I n d i c a t e w i t h l i n e s o r a r r o w s t h e p a t h s o f v e h i c l e s o r p e r s o n s , a l s o t h e d i r e c t i o n a n d d i s t a n c e t o t h e n e a r e s t t o w n o r i n t e r s e c t i o n . -\ ' \ \ \ J> Sctcct ilol'ci lir.es an Show vcMcles: pedestrians: — r l l i l l i n : • - • > C D C . 4 . t if—u -o Show by on north arrow. I 1 POINT OF IMPACT 1 2 1 2 • • t. Front. a O 5. Left side. • D 2. Right front. • D 6. Rear. 0 O 3 . Left front. • • 7. Rir.lit rear. D D 4. Right side. • D 8. Left rear. ' N A M E S A N D A D D R E S S E S A N D O F K I L L E D A N D ( O R ) I N J U R E D W I T N E S S E S < Ti Female Killed Injured Taken to Hospital Driver 0 ti r. Pedestrian Cyclist Witness DP-SCRIBE NATURE OF INJURIES 1, 2 . (Name.) (Address.) (Name.) (Address.) 4 (Name.) (Address.) 5 (Name.) (Address.) 6 . '_ .. (Name.) (Address.) (Name.) (Address.) CM I M H H X OJ 0 U CO I H I -Z-J M A K E R R I E F S T A T E M E N T O F P A R T I C U L A R S O F A C C I D E N T . . D a t e d a t , B . C . , t h i s _ d a y o f — , 1 9 (Signature) ORIGINAL: To be forwarded to police authority of area in which accident occurred for notation and transmittal to Superintendent of Motor-vehicles, Victoria, B.C. 10 I T O I 5 E C O M P L E T E D B Y P O L I C E A U T H O R I T Y ( S t a t e i f i n v e s t i g a t i o n o f a c c i d e n t m a d e , a n d , i f s o , w h a t a c t i o n t a k e n a n d a n y r e c o m m e n d a t i o n s . ) W a s i n s u r a n c e • Y e s . 1 • 1 c a r d p r o d u c e d ? • N o . M a k e a n d y e a r 01 v e h i c l e _ S p e e d z o n e . . D a t e a n d t i m e r e p o r t r e c e i v e d : a . m . -127-which w i l l enhance the e f f i c a c y of remedial measures. To put automobile a c c i d e n t f a t a l i t i e s i n p e r s p e c t i v e , t h e r e are more deaths due to highway crashes then a l l o t h e r 6 causes i n Canada, expect f o r cancer and h e a r t d i c e a s e . A l s o i n the p e r i o d from 1954 to 1966 over 46,000 people were k i l l e d on Canadian roadways and t h i s t o l l was h i g h e r than the f a t a l i t i e s i n c u r r e d by the Canadian Armed. Forces d u r i n g 7 World War I I . T h e r e f o r e as the Wootton Commission p o i n t e d out. i t i s somewhat strange t h a t c o m p a r a t i v e l y l i t t l e money and r e s e a r c h has been, and i s devoted t o the r e d u c t i o n of highway c a s u a l t i e s . Causal F a c t o r s of T r a f f i c C a s u a l t i e s Before one can assess the p o t e n t i a l of d i f f e r e n t forms of d e t e r r e n t s some i n s i g h t i n t o the r e l e v a n t f a c t o r s i n c o n n e c t i o n w i t h motor v e h i c l e a c c i d e n t s must be gained. The fundamental p o i n t which i s o f t e n o v e r l o o k e d i s t h a t the number and degree of t r a f f i c i n j u r i e s depend on d r i v e r a t t i t u d e and b e h a v i o u r , the d e s i g n of the motor v e h i c l e , the s t a t e of the roadway environment, and the p o s t - a c c i d e n t emergency care. T h e r e f o r e i f one i s i n t e r e s t e d i n r e d u c i n g the number of highway c a s u l a t i e s and p r o p e r t y damage, a t t e n t i o n must be p a i d to a l l four v a r i a b l e s . However, i n so doing one must not f a l l prey to the f a l l a c y , " t h a t the p r i o r i t y r a n k i n g of countermeasures, i n terms of t h e i r a b i l i t y t o i n f l u e n c e the end r e s u l t of concern, -128-must p a r a l l e l the r a n k i n g , i n order of t h e i r r e l a t i v e c o n t r i b -9 u t i o n , of causes i n f l u e n c i n g those end r e s u l t s . " Hence although the p r e v a l e n t , but unproven view i s t h a t 8 8 p e r c e n t of a l l a c c i d e n t s are caused by human f a i l u r e , 10 p e r c e n t by mechanical f a i l u r e , and 2 p e r c e n t by " a c t s of God","^ i t would be i l l o g i c a l to spend time and money i n t h a t p r o p o r t i o n i n r e s p e c t of remedial a c t i v i t i e s , eg. r e s e a r c h and programs. In s t e a d c o n s i d e r a t i o n s of a c o s t - b e n e f i t a n a l y s i s would d i c t a t e t h a t emphasis should be p l a c e d on the "most e f f e c t i v e " means of l o s s reduction.^""'" K l e i n and W a l l e r suggest t h a t i f t h i s l i n e of r e a s o n i n g were f o l l o w e d , the order of p r i o r i t i e s s hould be: 1) v e h i c l e d e s i g n improvement, 2) improving emergency h e a l t h s e r v i c e s , and 3) e f f o r t s devoted t o changing d r i v e r behaviour but based on sound r e s e a r c h . ^ T h i s c o s t - e f f e c t i v e n e s s approach i s g r a p h i c a l l y i l l u s t r a t e d by a U n i t e d S t a t e s H e a l t h s e r v i c e estimate which i n d i c a t e d t h a t the e x p e n d i t u r e s r e q u i r e d , i n order t o save one l i f e on American highways, ranged from $87 (to i n c r e a s e the use of s e a t b e l t s ) , 13 t o $88,000 (to improve d r i v e r performance and b e h a v i o u r ) . The e s s e n t i a l p o i n t which must be grasped i s t h a t a con-c e r t e d program w i t h r e s p e c t to a l l f o u r of these v a r i a b l e s of t r a f f i c s a f e t y i s r e q u i r e d , and i f funding i s a problem then -129-inoney should be d i r e c t e d toward the f a c t o r (s) which w i l l most l i k e l y c o n t r i b u t e t o the r e d u c t i o n of the highway caus-a l i t i e s . The Design of the Motor V e h i c l e 14 Ever s i n c e Ralph Nader wrote Unsafe at Any Speed i n 1965, the presence or absence of s a f e t y f e a t u r e s i n r e s p e c t of the automobile has a t t r a c t e d widespread a t t e n t i o n from both the p u b l i c and the government. The mandatory s e a t - b e l t regulations,"*" and the r e c a l l of motor v e h i c l e s because of d e f e c t i v e p a r t s are o n l y two of the more obvious i n d i c a t i o n s of the deep concern about the r e l i a b i l i t y and s a f e t y of today's automobiles. However i n s p i t e of t h i s a t t e n t i o n a study suggested t h a t mechanical d e f e c t s may have been r e s p o n s i b l e f o r over 12 p e r c e n t of a l l t r a f f i c a c c i d e n t s on New York f r e e w a y s , 1 ^ and i t was e s t i m a t e d t h a t "at l e a s t 40 p e r c e n t and p o s s i b l y 80 p e r c e n t of the motor v e h i c l e s on the highway have at l e a s t o n e - s a f e t y r e l a t e d d e f e c t . In B r i t i s h Columbia, i n s p i t e of p r o v i n c e wide V e h i c l e T e s t i n g s t a t i o n s , the r a t h e r c u r s o r y a c c i d e n t s t a t i s t i c s d i s -c l o s e d t h a t over 4 p e r c e n t of v e h i c l e s i n v o l v e d i n t r a f f i c a c c i d e n t s i n 1970 were m e c h a n i c a l l y d e f e c t i v e or i l l - s u i t e d f o r the d r i v i n g c o n d i t i o n s , eg. no c h a i n s were employed when 18 the roads were covered w i t h i c e or snow. T h i s f i g u r e i s p r o b a b l y a gross underestimate of the c a u s a t i v e c o n t r i b u t i o n of d e f e c t i v e or i l l - s u i t e d v e h i c l e s because of the incomplete, -130-or n o n - e x i s t e n t examination of v e h i c l e s i n v o l v e d i n a c c i d e n t s , and the w i l l i n g n e s s to a t t r i b u t e the c r a s h to human e r r o r even though mechanical i n a d e q u a c i e s may have p l a y e d a r o l e i n the c a u s a t i o n of the a c c i d e n t , eg. i n some cases t h e r e w i l l be m u l t i p l e causes, but a c c i d e n t r h e t o r i c d i c t a t e s t h a t 19 when i n doubt, blame the mishap on "the nut behind the wheel". U n f o r t u n a t e l y even i f c a r s are more c a r e f u l l y b u i l t so mechanical d e f e c t s are reduced and/or i f i n s p e c t i o n procedures are improved and repeated more f r e q u e n t l y , t h e r e w i l l s t i l l be a c e r t a i n percentage of p o t e n t i a l l y dangerous v e h i c l e s on the roadways. Consequently the b e s t hope f o r r e d u c t i o n of i n j u r i e s and f a t a l i t i e s i n r e s p e c t of the motor v e h i c l e , l i e s w i t h the d e s i g n , eg. c o l l a p s a b l e s t e e r i n g column, or a u x i l i a r y d e v i c e s eg. a i r - b a g s , which w i l l minimize the i n t e r n a l impact between the v e h i c l e and i t s occupants, eg. a l t e r i n g the automobile package. The Roadway Environment One source estimated t h a t "between 30-35 per c e n t of a l l highway f a t a l i t i e s occur i n n o n - c o l l i s i o n a c c i d e n t , most of 20 which i n v o l v e v e h i c l e s leaving the roadway. The same r e s e a r c h e r p o i n t e d out t h a t such standard r o a d s i d e f e a t u r e s as t r e e s , l i g h t -p o l e s , r o a d s i d e s i g n s , d i t c h e s , and g u a r d r a i l s a l l r e p r e s e n t 21 p o t e n t i a l l y f a t a l o b s t a c l e s as the car l e a v e s the highway. He i n d i c a t e d t h a t by r a i s i n g the h e i g h t of r o a d s i d e s i g n s , by -131-making c o l l a p s a b l e l i g h t - p o l e s , by removing t r e e s from the v i c i n i t y o f the roadway/ by c o n t o u r i n g the d i t c h e s i n an a p p r o p r i a t e f a s h i o n , and by a l t e r i n g the d e s i g n of guard-22 r a i l s many i n j u r i e s and f a t a l i t i e s may be prevented. Another study suggested t h a t w h i l e " i n t e r s e c t i o n areas account f o r l e s s than o n e - t h i r d of the study road and i t s 23 t r a f f i c they produce 70 p e r c e n t of t o t a l a c c i d e n t s " . The same i n v e s t i g a t i o n i n d i c a t e d t h a t r o a d s i d e f e a t u r e s , eg. l a r g e s i g n s , s t o r e s , t a v e r n s , gas s t a t i o n s e t c . , i n c r e a s e a c c i d e n t f r e q u e n c y . ^ These f i n d i n g s have s i g n i f i c a n t i m p l i c a t i o n s f o r the improvement of t r a f f i c s a f e t y , but as the Wootton Commission p o i n t e d out t h a t w h i l e p r o p e r l y engineered freeways l e s s e n the number of a c c i d e n t s , the r e s t r i c t e d space i n urban c e n t r e s , and the sparssly p o p ulated r u r a l a r e a s , make such p r o j e c t s extremely 25 expensive. In a d d i t i o n , as evidenced by the c u r r e n t con-t r o v e r s y i n Vancouver i n r e s p e c t of the t h i r d c r o s s i n g of Bu r r a r d I n l e t , i t i s not u n l i k e l y t h a t debates over the a l l o c a t i o n of p u b l i c funds, eg. to i n c r e a s e or improve highway systems, or t o s t a r t r a p i d t r a n s i t p r o j e c t s , w i l l c o ntinue f o r some time, and hence i n the t r a n s i t i o n s tage, eg. from automobiles t o r a p i d t r a n s i t , the highway environment may not r e c e i v e the a t t e n t i o n or funds i t deserves. The 1970 Annual Report of the Superintendent of Motor Vehicles d i s c l o s e d t h a t the roadway was d e f e c t i v e , o b s t r u c t e d , or under r e p a i r i n over 3 p e r c e n t of the f a t a l a c c i d e n t s , and 2 6 i n about 2 p e r c e n t of mishaps i n v o l v i n g i n j u r i e s . Again these f i g u r e s p robably u n d e r s t a t e d the t r u e p i c t u r e because of the inadequate i n v e s t i g a t i o n of the a c c i d e n t scenes. A l s o the Report r e v e a l e d t h a t approximately 32 p e r c e n t , and 39 p e r c e n t , o f f a t a l i t i e s , and i n j u r i e s , r e s p e c t i v e l y 27 o c c u r r e d on non-dry road s u r f a c e s , and one immediately asks whether the forementioned f r e q u e n c i e s o v e r - r e p r e s e n t the v e h i c u l a r t r a f f i c group which t r a v e l l e d d u r i n g such c o n d i t i o n s , and secondly, i f the non-dry road s u r f a c e was a c a u s a l f a c t o r i n i t s e l f or i n combination w i t h o t h e r f a c t o r s , how much would i t c o s t to reduce the i n f l u e n c e of t h i s f a c t o r . [ I d e a l l y ] , "one of the fundamental p r i n c i p l e s of s a f e t y e n g i n e e r i n g i s t o a n t i c i p a t e every poss-i b l e type of a c c i d e n t which may occur because of machine f a i l u r e or human f a i l u r e and then t o e s t a b l i s h safeguards to minimize the hazards or 2g i n j u r y which may r e s u l t when such f a i l u r e o c c u r s " . R e a l i s t i c a l l y , attempts must be made to improve the h i g h -way environment as much as p o s s i b l e w i t h i n the boundaries of p r e s e n t r e s e a r c h and a v a i l a b l e funds. U n f o r t u n a t e l y because of B r i t i s h Columbia's rugged t e r r a i n such improvements r e q u i r e unique r e s e a r c h and are more c o s t l y to implement, but the h i g h c a s u l a t y r a t e on B r i t i s h Columbia roads, eg. 2.9 i n j u r i e s -133-or deaths per one m i l l i o n v e h i c l e m i l e s (highest r a t e i n 29 Canada i n 1970), which i s probably due i n p a r t t o t h i s p r o v i n c e ' s topography, cannot be i g n o r e d . P o s t - A c c i d e n t Emergency Treatment There i s some i n d i c a t i o n t h a t i n s p i t e o f the advances i n emergency care w i t h r e s p e c t to t r a f f i c v i c t i m s , many f a c e t s of such treatment c o u l d s t i l l p r o f i t from changes i n order t o reduce the s e r i o u s n e s s o f t r a f f i c i n j u r i e s . The treatment of such i n j u r i e s i n v o l v e s f o u r b a s i c comp-onents : f i r s t a i d , ambulance s e r v i c e , emergency c a r e , and r e h a b i l i t a t i o n . One authority.. Dr. W i l l i a m Haddon, p o i n t e d out t h a t although members of the p u b l i c must be prepared t o pro v i d e the i n i t i a l a i d , s i n c e no m e d i c a l experts w i l l be a v a i l a b l e i n most cases, the overwhelming m a j o r i t y of the p u b l i c were, and are q u i t e i n c a p a b l e of d e a l i n g w i t h emergency s i t u a t i o n s , and hence the l a c k of c r u c i a l a s s i s t a n c e may o f t e n 30 a d v e r s e l y a f f e c t the degree of the i n j u r y . Dr. Haddon a l s o d i s c l o s e d t h a t s t u d i e s showed t h a t t r a n s p o r t a t i o n of cr a s h v i c t i m s from the scene of the a c c i d e n t t o a h o s p i t a l was inadequate i n many cases because of poor communications and 31 p l a n n i n g o f ambulance networks. In a d d i t i o n ambulance p e r s o n n e l were not s u f f i c i e n t l y t r a i n e d t o cope w i t h the 32 wide v a r i e t y of t r a f f i c i n j u r i e s and other emergencies. -134-With r e s p e c t to emergency care f a c i l i t i e s , s t u d i e s i n d i c a t e d t h a t the q u a l i t y of such p l a c e s and the e s s e n t i a l m e d i c a l s t a f f , depended on t h e i r l o c a t i o n , eg. r u r a l h o s p i t a l s e r v i c e tended to be of a much lower standard then t h a t of 33 urban treatment c e n t r e s . A l s o emergency wards were not p r o p e r l y equipped i n r e s p e c t to manpower to handle a c c i d e n t 34 cases i n the l a t e evening and e a r l y morning hours. T h i s d i s c l o s u r e i s s i g n i f i c a n t because more than 50 p e r c e n t o f t r a f f i c deaths and more than 37 p e r c e n t of t r a f f i c i n j u r i e s i n B r i t i s h Columbia, d u r i n g 1970-71 o c c u r r e d between 7 PM -7 A.M. (See Schedule XIV ) . Of i n t e r e s t i s the number of f a t a l i t i e s and i n j u r i e s i n Vancouver, which one may presume has the b e s t emergency t r e a t -ment f a c i l i t i e s i n B r i t i s h Columbia. In 1970 and 1971, o n l y 40 out of 559 deaths, and o n l y 39 out of 633, deaths r e s p e c t -i v e l y , o c c u r r e d i n Vancouver as compared w i t h the B r i t i s h Columbia t o t a l s , and y e t i n j u r i e s i n the same area acounted f o r more than 20 p e r c e n t of the comparable B r i t i s h Columbia 35 f i g u r e . Quite o b v i o u s l y the r a t i o s of deaths to i n j u r i e s , eg. 1970-40/5,359 and 1971-39/5,085 might have been i n f l u e n c e d by o t h e r f a c t o r s , eg. fewer h i g h speed areas i n which the f a -t a l i t y r a t e v/as presumably h i g h e r , but one suspects t h a t the emergency care and p o s s i b l y the ambulance s e r v i c e p l a y e d a s i g n i f i c a n t r o l e i n tne r e l a t i v i t y low r a t i o s . I t i s presumed t h a t r e h a b i l i t a t i o n treatment of t r a f f i c Schedule XIV Time D i s t r i b u t i o n of F a t a l i t i e s and I n j u r i e s i n B.C. DEATHS .INJURIES NITE DAY NITE DAY 7 P.M. 7P.M.' -7A.M. 4 A.M. 7A.M.- 7P.M. TOTAL 7P.M.-7A.M. 7A.M. - 7P.M. TOTAL-1965 228 208 193 421 4,310 7,246 11,556 1966 254 238 191 445 5,080 7,609 12,689 1967 242 223 219 461 4,882 7,812 12,694 1968 260 235 200 460 4,992 8,307 13,299 984 904 803 1,787 19,264 30,974 50,238 19 69 225 209 242 467 5,661 9,202 14,863 1 ,209 1,113 1,045 2,254 24,925 40,176 65,101 1970 241 222 230 471 5,615 9,036 14,651 (11 months) 1971 268 245 . 231 . 499 4,865 . .8,206 . 13,071 509 467 : 461 : 970 10,480 17,242 27,722 _ 1 K _ -136-Schedule XIV - Continued (2) N i t e Deaths T o t a l Percentages 7 P.M. - 4 A.M. T o t a l s - N i t e I n j u r y T o t a l s 1. 1965-1968 2. 1965-1969 3. 1969 4. 1970-71 5. 1960-64 55. 0% 48.1% 48.1% 52.5% 53. 9% 50.5% 49. 5% 44. 8% 48.1% 48.2% 38.2% 38.2% 38.1% 37. 8% 6. 1960-69 53.6% 49.0% Source - Annual Reports of the Superintendent of Motor V e h i c l e s -137-v i c t i m s would, as was the case w i t h emergency treatment, depend on the l o c a t i o n o f the f a c i l i t y , but i n some s i t u a t i o n s t h i s handicap can be overcome by t r a n s p o r t i n g the v i c t i m t o a h i g h q u a l i t y r e h a b i l i t a t i o n c e n t r e i f the funds are a v a i l -a b l e . The Motor V e h i c l e A c c i d e n t D r i v e r The primary concern i n t r a f f i c s a f e t y because he i s thought t o be " r e s p o n s i b l e " f o r the overwhelming m a j o r i t y of a c c i d e n t s , i s the d r i v e r who i s i n v o l v e d i n motor v e h i c l e a c c i d e n t s , although the s t u d i e s about t o be d i s c u s s e d would tend to c a s t doubt on t h i s p r e v a i l i n g view. In o r d e r t o analyze r e m e d i a l a c t i o n i n r e s p e c t of t h i s i n d i v i d u a l , c e r t a i n f a c e t s of h i s c h a r a c t e r s h o u l d be r e v e a l e d . However i n s p i t e of the i n c r e a s i n g a t t e n t i o n g i v e n t o t h i s s u b j e c t , i t i s d i f f i c u l t t o make c a t e g o r i c a l l y , many c o n c l u s i v e statements. One of the reasons f o r t h i s predicament i s the l a c k o f adequate r e s e a r c h , and sec o n d l y psychology and s o c i o -logy are r e l a t i v e l y young s c i e n c e s . T h e r e f o r e one must approach the ex p e r i m e n t a l s t u d i e s w i t h some c a u t i o n , but the da t a they p r o v i d e i s b e t t e r than no i n f o r m a t i o n a t a l l , and hence i t must be used on a t e n t a t i v e b a s i s , u n t i l f u r t h e r s t u d i e s are performed, i n order t o analyze the automobile d r i v e r and suggested d e t e r r e n t measures. -13 8-A l c o h o l One of the areas i n which c o n c l u s i o n s can be drawn, i s i n r e s p e c t of the d r i n k i n g d r i v e r . One source i n d i c a t e d t h a t 60 p e r c e n t of " r e s p o n s i b l e " d r i v e r s i n v o l v e d i n f a t a l a c c i d e n t s had been d r i n k i n g , and over 50 p e r c e n t of the same 3 6 group had a b l o o d / a l c o h o l r e a d i n g of 0.10 p e r c e n t or h i g h e r . Or s t a t e d i n a d i f f e r e n t f a s h i o n another e x h a u s t i v e study demonstrated t h a t those i n d i v i d u a l s who would have been v i o l -a t i n g the law i n B r i t i s h Columbia, eg. having a r e a d i n g of 37 0.0 8 p e r c e n t or h i g h e r , were i n v o l v e d i n 5 times as many 3 8 a c c i d e n t s as would have been a n t i c i p a t e d . These f i n d i n g s are c o r r o b o r a t e d by the work of Dr. Duncan Macpherson who examined the Vancouver scene i n r e s p e c t of t r a f f i c a c c i d e n t s . His a n a l y s i s r e v e a l e d t h a t i n a c c i d e n t s r e s u l t i n g i n moderate or s e r i o u s i n j u r y , the blameworthy d r i v e r had been d r i n k i n g 39 i n almost 64 p e r c e n t of the cases. The o n l y r e a l p o i n t of c o n t e n t i o n p e r t a i n i n g to the d r i n k i d r i v e r i s h i s a l c o h o l i c h a b i t s . At l e a s t one study, suggested 40 t h a t the " s o c i a l " d r i n k e r was,and i s the prime o f f e n d e r . More r e c e n t l y the c h r o n i c a l c o h o l i c has been g i v e n the dubious 41 d i s t i n c t i o n of b eing the r e a l menace to highway s a f e t y . The "problem" d r i n k e r u n l i k e the " s o c i a l " d r i n k e r was over-42 r e p r e s e n t e d i n severe crashes, and hence appears to deserve the most a t t e n t i o n . However i t would be a mistake t o assume t h a t the s o c i a l d r i n k e r i s not an important f a c t o r i n l e s s -139-s e r i o u s i n j u r y and p r o p e r t y damage cases. Hence a c o n c e r t e d approach i s r e q u i r e d i n r e s p e c t o f both types o f d r i n k i n g d r i v e r s , and i t i s i n d i c a t e d t h a t such s l o g a n s , as " i f you d r i n k , don't d r i v e " , do not c o n t r i b u t e t o the s o l u t i o n o f 43 t h i s problem. Drugs Ap p a r e n t l y the r o l e o f drugs i n t r a f f i c a c c i d e n t s has not been thoroughly r e s e a r c h e d , and at t h i s p o i n t i n time i t i s suspected t h a t they are o n l y a minor c a u s a l f a c t o r , 44 un l e s s t h e i r e f f e c t i s combined w i t h t h a t of a l c o h o l . F a t i g u e F a t i g u e i s another important c a u s a t i v e v a r i a b l e i n t r a f f i c a c c i d e n t s . As the Wootton Commission p o i n t e d out the h i g h e s t i n c i d e n c e of t r a f f i c a c c i d e n t s i n v o l v i n g i n j u r i e s o c c u r r e d between 4 P.M. - 6 P.M., and q u i t e l i k e l y was due 45 to f r u s t r a t i o n and f a t i g u e . In 1970 th e r e were 2,542 a c c i d e n t s i n v o l v i n g f a t a l i t i e s or i n j u r i e s between 4 P.M. -6 P.M., as compared wi t h o n l y 969 s i m i l a r a c c i d e n t s d u r i n g the 46 morning rush hour, eg. 9 A.M. - 9 P.M., i n B r i t i s h Columbia. A l s o The Annual Report of the Superintendent of Motor Vehiel i n d i c a t e d t h a t 8 out of the 673 d r i v e r s i n v o l v e d i n a c c i d e n t s 47 i n 1970 were extremely f a t i g u e d , but because of the r e l u c t a n c e of d r i v e r s t o admit p o s s i b l y damaging i n f o r m a t i o n , and the use -140-of the adverb, "extremely", t h i s f a c t o r i s p r o b a b l y u n d e r s t a t e d t o a c o n s i d e r a b l e i n t e n t . D r i v e r Age The works c o l l a t e d by K l e i n and W a l l e r suggested t h a t young d r i v e r s , eg. under 25 were, and are o v e r - r e p r e s e n t e d i n f a t a l a c c i d e n t s , and "are i n v o l v e d i n a h i g h e r p r o p o r t i o n of s i n g l e - v e h i c l e crashes and o t h e r crashes i n which t h e r e i s 48 commonly l i t t l e q u e s t i o n as to the d r i v e r ' s c u l p a b i l i t y . Again the Wootton Commission confirmed these f i n d i n g s when i t d i s c l o s e d t h a t v e h i c l e d r i v e r s i n the 16-25 age group accounted f o r approximately 19 p e r c e n t of a l l B r i t i s h Columbia d r i v -ers , y e t they were i n v o l v e d i n 30 p e r c e n t of a l l r e p o r t e d a c c i d e n t s . However as K l e i n and W a l l e r e x p l a i n e d , i t i s q u i t e p o s s i b l e t h a t the h i g h a c c i d e n t frequency of young d r i v e r s i s not "due t o w i l f u l r i s k t a k i n g " , but to t h e i r l a c k of e x p e r i e n c e , eg. 50 " a t an e a r l y p o i n t on the l e a r n i n g curve." Other p o s s i b l e reasons f o r t h e i r r a t e of a c c i d e n t involvement are t h e i r attempts to a d j u s t to the s o c i a l p r e s s u r e s e x e r t e d by t h e i r p e e r s , the u n r e l i a b i l i t y of t h e i r v e h i c l e s , eg. many i n t h i s age b r a c k e t have second-hand automobiles, and a l s o i t i s suggested t h a t the young may use "more hazardous p o r t i o n s " of the highway system or t r a v e l more f r e q u e n t l y at "hazardous t i m e s e g . a t • v i . 51 n i g h t . -141-As f a r as the e l d e r l y d r i v e r s are concerned they appear to have a much hi g h e r crash r a t e as compared wi t h middle age d r i v e r s , but a study i n d i c a t e d t h a t t h i s phenomena was not due t o age per se, but to the h i g h e r r a t e of desease and i l l n e s s p r e v a l e n t amongst o l d e r i n d i v i d u a l s , eg. h e a r t d i s e a s e , . . 52 s e n i l i t y e t c . A c c i d e n t Repeaters During the 1950's and e a r l y 1960's i t was common to read of the l a r g e number of a c c i d e n t s which i m p l i c a t e d the 53 " a c c i d e n t prone" d r i v e r . More r e c e n t l y i n a c l a s s i c study 54 by C r e s s w e l l and F r o g g a t t , i t was concluded t h a t "data does not support the c o n t e n t i o n t h a t t h e r e were [comparatively] many, i f indeed any ... d r i v e r s i n the p o p u l a t i o n ... who 55 were a c c i d e n t prone." Consequently the a c c i d e n t r e s e a r c h workers now employ the term " a c c i d e n t r e p e a t e r s " to d e s c r i b e those i n d i v i d u a l s who have r e c u r r i n g mishaps because of chance or d i f f e r e n t exposure r a t e s . More r e c e n t r e s e a r c h has suggested t h a t a c c i d e n t r e p e a t e r s might have more d i f f i c u l t y than the non-accident group i n 56 meeting s o c i a l and p e r s o n a l demands, and were e m o t i o n a l l y 57 u n s t a b l e . Although these r a t h e r l i m i t e d experiments do not p r o v i d e f o o l p r o o f r e s u l t s , they do p r o v i d e some guide f o r f u t u r e r e s e a r c h and acknowledge the p o s s i b l e e x i s t e n c e of more c a u s a t i v e f a c t o r s -142-i n t r a f f i c a c c i d e n t s . S u i c i d e and Homocide The highway i s p r o b a b l y the scene of a number of s u i c i d e s and homocides each year , but as Dr. Haddon p o i n t e d out, u n t i l t h e r e i s an adequate i n v e s t i g a t i o n of deaths by v i o l e n c e , t h e r e w i l l be no r e l i a b l e data as t o the number of m i s c l a s s i -f i e d deaths, eg. t r a f f i c f a t a l i t i e s which are r e a l l y s u i c i d e s 5 8 or homocides. D r i v e r s who "cannot" or " w i l l not" conform K l e i n and W a l l e r suggested t h a t t h e r e were an undetermined number of d r i v e r s , who "cannot" conform, eg. c h r o n i c a l c o h i c s , i n e x p e r i e n c e d d r i v e r s , d r i v e r s t r a v e l l i n g on i c y s t r e e t s , e t c . , and who " w i l l not" conform, eg. the i n c o r r i g i b l e s , and hence these d r i v e r are ' l a r g e l y immune t o c o n v e n t i o n a l d e t e r r e n t 59 measures". Although the exact dimensions of the forementioned d r i v e r groups were unknown, i t was thought t h a t they are 6 0 n e i t h e r " s m a l l nor s t a b l e " , and t h e r e f o r e these o b s e r v a t i o n s have s i g n i f i c a n t i m p l i c a t i o n s as f a r as d e t e r r e n t s are con-cerned, and i l l u s t r a t e s why c u r r e n t t h i n k i n g s t r e s s e s changes i n the roadway and automobile d e s i g n , as opposed to d r i v e r im-provement . -143-P e d e s t r i a n s and C y c l i s t s A r e l a t e d area to our t o p i c of t r a f f i c s a f e t y i s the i n j u r i e s and f a t a l i t i e s s u f f e r e d by p e d e s t r i a n s and c y c l i s t s . These two c a t e g o r i e s of v i c t i m s accounted f o r approximately 19 p e r c e n t of a l l t r a f f i c f a t a l i t i e s i n B r i t i s h Columbia 61 i n 1970. The s t a t i s t i c s showed, as might be expected, t h a t about 56 p e r c e n t of the p e d e s t r i a n f a t a l i t i e s were 50 years or o l d e r , where as 90 p e r c e n t of b i c y c l e deaths were 6 2 i n f l i c t e d on i n d i v i d u a l s under 19 y e a r s . A l s o s t u d i e s have shown t h a t more than 50 p e r c e n t of 6 3 p e d e s t r i a n f a t a l i t i e s have consumed some a l c o h o l . In these a r e a s , as i n the o t h e r s forementioned, every r e a s o n a b l e attempt must be made to f i n d the c a u s a t i v e r e -l a t i o n s h i p between these v i c t i m s and the a c c i d e n t , so appro-p r i a t e c o r r e c t i v e steps can be taken. D e t e r r e n t s Three b a s i c assumptions u n d e r l i e a l l d e t e r r e n t measures, w i t h r e s p e c t to t r a f f i c a c c i d e n t s : "1) t h a t the d r i v e r i s capable of c o n s i s t e n t l y s a f e b e h a v i o u r , 2) t h a t h i s l a p s e s i n t o unsafe behaviour are w i t h i n h i s c onscious c o n t r o l and are o f t e n d e l i b e r a t e l y committed because they o f f e r him some advantages, and 3) t h a t the t h r e a t of punishment w i l l c o unterbalance the advantages he seeks to g a i n from unsafe be-h a v i o r . " 6 4 -144-In a d d i t i o n i n order t h a t a d e t e r r e n t be e f f e c t i v e : . "1) There must be a s t r o n g s o c i e t a l s a n c t i o n f o r the use of p u n i t i v e or d e t e r r e n t measures, 2) The p o t e n t i a l o f f e n d e r must be s u f f i c i e n t l y s u s c e p t i b l e t o s o c i e t a l s a n c t i o n s and p r e s s u r e s so he w i l l respond to the f u l l e s t e x t e n t to which he i s capable,and 3) The p o t e n t i a l o f f e n d e r must be capable of changing h i s b e h a v i o r i n the i n t e n d e d d i r e c t i o n . " ^ ^ However as was j u s t observed, t h e r e are c o n s i d e r a b l e numbers of people who may be i n c a p a b l e of c o n t r o l l i n g or a d j u s t i n g t h e i r b e haviour, eg. those d r i v e r s who "cannot" o r " w i l l not" conform. Secondly the s o c i e t a l p r e s s u r e s , i n r e s p e c t of most d r i v e r s , who can d r i v e s a f e l y and p r o p e r l y , and have concious c o n t r o l 66 of t h e i r v e h i c l e s "most of the time", are r a t h e r minimal even w i t h r e s p e c t to the most f l a g r a n t t r a f f i c o f f e n d e r s , eg. a d r i v e r who r e c e i v e s a t r a f f i c summons i s regarded as an u n f o r t u n a t e v i c t i m of an a r b i t r a r y enforcement o f f i c e r e n f o r c i n g 6" V an unreasonable s t a n d a r d . In a d d i t i o n as f a r as t r a f f i c r e g u l a t i o n s are concerned, t h e r e i s f u r t h e r room f o r s k e p t i c i s m about the e f f i c a c y of such measures, because i t has not c l e a r l y been e s t a b l i s h e d t h a t a c a u s a l r e l a t i o n s h i p e x i s t s between d r i v i n g behaviour r e s u l t i n g 6 8 i n t r a f f i c v i o l a t i o n s and t h a t r e s u l t i n g i n t r a f f i c a c c i d e n t s . A l s o the extremely low apprehension and enforcement r a t e s tend 69 to negate any p o s s i b l e d e t e r r e n t e f f e c t s of t r a f f i c r e g u l a t i o n s . Consequently the concept of c r i m i n a l law as a d e t e r r e n t to t r a f f i c a c c i d e n t s appears to be somewhat shaky. However some s t u d i e s i n d i c a t e t h a t c e r t a i n p r e v e n t i v e measures do have some e f f e c t . There i s some evidence which suggests t h a t i n c r e a s e d enforcement w i l l reduce the number 70 of moving v i o l a t i o n s , eg. speeding, however because of the c o s t f a c t o r i n v o l v e d , t h i s approach has severe l i m i t -a t i o n s . Some d r i v e r improvement a c t i o n s such as a d v i s o r y l e t t e r s , suspensions and p r o b a t i o n of d r i v e r l i c e n c e s , would appear to reduce the r e c i d i v i s m r a t e , and i n the case of r e p e a t i n g o f f e n d e r s , such steps w i l l extend the d u r a t i o n between v i o l a t i o n s . For example one study showed t h a t the c o n t r o l group, the suspension group, and the p r o b a t i o n group, had 37 p e r c e n t ; 72 22 percent^and 10 p e r c e n t > f u r t h e r v i o l a t i o n s , r e s p e c t i v e l y . I t i s i n t e r e s t i n g t o note t h a t such a c t i o n s have been u t i l i z e d i n B r i t i s h Columbia f o r some time. In r e s p e c t of l i c e n c e suspensions t h e r e i s some i n d i c a t i o n t h a t d r i v e r s f e a r such a s a n c t i o n more deeply than a number of o t h e r forms of punishment. In a survey taken i n Michigan a number of i n d i v i d u a l s were asked to choose which form of punishment was the l e a s t d e s i r a b l e , 1) a $250 p r o p e r t y damage a c c i d e n t , i n which one's own c a r i s damaged but no i n j u r i e s are s u f f e r e d , -146-2) an a c c i d e n t i n v o l v i n g minor p e r s o n a l i n j u r y , 3) a drunk d r i v i n g c h a r g e , o r 73 4) a s u s p e n s i o n o f a l i c e n c e f o r one y e a r . The sample group r e g a r d e d t h e one y e a r s u s p e n s i o n as 74 t h e most h a r s h p e n a l t y . T h i s f i n d i n g was c o n c u r r e d w i t h by Mr. J i m A t t r i d g e , Manager o f the Vancouver T r a f f i c and S a f e t y C o u n c i l , who f e l t t h a t t h e p o t e n t i a l l o s s o f freedom, p r i v a c y , and m o b i l i t y ^ p r o v i d e d by t h e motor v e h i c l e by means 75 of a s u s p e n s i o n , was t o t h e b i g g e s t d e t e r r e n t t o a c c i d e n t s . U n f o r t u n a t e l y w i t h r e s p e c t t o l i c e n c e s u s p e n s i o n s t h e r e -,4- "1 4- +-..T^ , -v~ -> 4- V* ^ -w- r ^ ^ ^ m - i - P - i ^ — v % 4 - 1 A i~. — 4- -i s^-r, <-. T?A-^r^4-liT C4 . .1. t— .4- O U . O l ~ U T V U J _ U k ~ l l l ^ ; j _ O J _ < j j A i a - J L W C A X X C C / l L l J ^ . 1 . - I . W t « l > . i - _1_ J_ _ i _ t h e t h r e a t o f s u s p e n s i o n i s r e a l l y o n l y p r e s e n t i n a l i m i t e d number o f c a s e s , eg. s e r i o u s motor v e h i c l e o f f e n c e s , C r i m i n a l Code v i o l a t i o n s , bad d r i v i n g r e c o r d , o r an u n s a t i s f i e d j u d g -ment, and even i n t h e s e cases t h e low a p p r e h e n s i o n and con-v i c t i o n r a t e s n e u t r a l i z e t h e d e t e r r e n t t o some e x t e n t , and a l s o t h e r e i s a good chance t h a t t h i s t y p e o f d r i v e r w i l l have been i n v o l v e d i n a c c i d e n t s b e f o r e t h e s u s p e n s i o n w i l l be imposed f o r one o f t h e above r e a s o n s . S e c o n d l y i t i s e s t i m a t e d t h a t a p p r o x i m a t e l y 50 p e r c e n t o f a l l d r i v e r s who have had t h e i r 7 6 l i c e n c e s suspended, w i l l d r i v e i n any e v e n t . C o n s e q u e n t l y u n l e s s enforcement o f suspended l i c e n c e s and o t h e r t r a f f i c v i o l a t i o n s can be i n c r e a s e d t h e d e t e r r e n t o f l i c e n c e s u s p e n s i o n s w i l l n o t as e f f e c t i v e as p o s s i b l e . -147-As f a r as most academics are concerned, eg. Keeton and 77 78 O'Connell and K l e i n and W a l l e r , , the b i g g e s t d e t e r r e n t by f a r i s the f e a r of p e r s o n a l i n j u r y . Presumably t h e i r c o n c l u s i o n was based on the premise of e i t h e r s e l f - p r e s e r v a t i o n and/or r i s k avoidance, which a c c o r d i n g to common sense l o g i c would appear t o be the primary concern of most d r i v e r s , eg. i n -a p p l i c a b l e t o c h r o n i c a l c o h o l i c , o r e m o t i o n a l l y u n s t a b l e i n d i v i d u a l s . However i n order to be a s i g n i f i c a n t f a c t o r one must h y p o t h e s i s t h a t "near misses", p r o p e r t y damage a c c i d e n t s , and t r a f f i c deaths and i n j u r i e s s u s t a i n e d by f r i e n d s and r e l a t i v e s , r e i n f o r c e s the s e l f - p r e s e r v a t i o n or r i s k avoidance motives because the l i k e l i h o o d of a p a r t i c u l a r person a c t u a l l y b e i n g i n v o l v e d i n an a c c i d e n t i n v o l v i n g i n j u r y i s q u i t e low, eg. o n l y 2.9 c a s u a l t i e s per one m i l l i o n m i l e s i n B r i t i s h Columbia. The F a u l t - S y s t e m I t would appear t h a t o n l y one w r i t e r i s s e r i o u s l y p r e -pared to.argue t h a t the f a u l t system i n r e s p e c t of b o d i l y i n -j u r y and p r o p e r t y damage r e s u l t i n g from a t r a f f i c a c c i d e n t has a s i g n i f i c a n t d e t e r r e n t e f f e c t on a c c i d e n t c a u s i n g , d r i v e r behaviour. Lawrence Lawton's h y p o t h e s i s i s t h a t the f a u l t system which f o r c e s c o n t a c t between the blameworthy d r i v e r and d i f f e r e n t h o s t i l e elements, eg. the o t h e r d r i v e r , the p o l i c e , the claimant's lawyer, the c l a i m a n t ' s i n s u r e r , " a l l focus the community abhorrence of a n " a c c i d e n t caused by a n e g l i g e n t -148-o 0 d r i v e r " , on such an i n d i v i d u a l . In summary the Lawton Model attempts to demonstrate t h a t an i n d i v i d u a l ' s behaviour can be d i r e c t e d toward a norm h e l d by a group ( s o c i e t y ) and the i n t e n s i t y of the p r e s s u r e e x e r t e d on the i n d i v i d u a l depends on the degree and number of p e r s o n a l c o n t a c t s between the 81 i n d i v i d u a l and the group. T h i s a n a l y s i s would appear to s u f f e r from a number of f l a w s , both from " p s y c h o l o g i c a l and l e g a l view p o i n t s . K l e i n and W a l l e r s t a t e d t h a t "Lawton's i n t e r p r e t a t i o n of "premise" experiments i s not shared by the experimenters themselves, by s o c i a l p s y c h o l o g i s t s i n g e n e r a l , or by o t h e r b e h a v i o r a l s c i e n t i s t s f a m i l i a r w i t h the purposes and the backgrounds of "82 these experiments. In a d d i t i o n the c r i t i c s f e l t t h a t a l l the model r e a l l y does i s to demonstrate the i n f l u e n c e of group norms and i n many cases p e r t a i n i n g t o d r i v e r b e h a v i o u r a l groups, the d r i v e r w i l l belong to a d e v i a n t subgroup and the n e g a t i v e and i n f r e q u e n t r e i n f o r c e m e n t toward s o c i e t y ' s norm w i l l be 8 3 outweighted by the d a i l y r e i n f o r c e m e n t o f the d e v i a n t norm. From a l e g a l v i e w p o i n t , the a n a l y s i s can a l s o be s u b j e c t e d to v a l i d c r i t i c i s m . The r u l e s of c i v i l l i a b i l i t y have become i n c r e a s i n g l y p r e - o c c u p i e d w i t h making whole the t o r t v i c t i m ' s l o s s e s "[and hence]" the law of t o r t s has a p p a r e n t l y r e l e g a t e d to a v e r y minor r u l e t h a t p o r t i o n of i t s i n f l u e n c e which operates t o prevent the occurrence of dangerous conduct or "84 t o d e t e r i t s r e p e t i t i o n . -149-In a d d i t i o n as p o i n t e d out by Kee'ton and 0 ' Connell because , "the meaning of a n e g l i g e n c e standard f o r a p a r t i c u l a r f a c t s i t u a t i o n i n t r a f f i c a c c i d e n t s i s u n c e r t a i n "[and because t h e r e i s ] " a c o n t i n u i n g tendency to brand as n e g l i g e n t more and more conduct t h a t i s n e i t h e r a v o i d -able nor m o r a l l y c u l p a b l e , ... the e d u c a t i o n a l and p s y c h o l o g i c a l e f f e c t o f a d j u d i c a t i o n [ i s ] s h a r p l y r e d u c e d . " 8 5 Moreover i t i s p o s s i b l e t h a t the "adversary system and the admonitory tone" of the s e t t l e m e n t n e g o t i a t i o n s and pro c e e d i n g s " may r e s u l t i n the d r i v e r b e l i e v i n g t h a t he was d r i v i n g p r o p e r l y , and i t was r e a l l y the oth e r p a r t y ' s f a u l t . ^ As f a r as the f a c t s are concerned, the r e l a t i v e i n f r e q u e n c y of s e r i o u s a c c i d e n t s , eg. o n l y 2.9 c a s u a l t i e s per one m i l l i o n m i l e s i n B r i t i s h Columbia, the s m a l l percentage of t h i r d p a r t y 8 7 c l a i m s which go to t r i a l , eg. approximately 1 p e r c e n t , the 8 8 i n s u l a t i o n e f f e c t of l i a b i l i t y i n s u r a n c e , and lawyers , and the a t t i t u d e of the d r i v e r ' s c l o s e s t c o n t a c t s , eg. re g a r d a c c i d e n t involvement as bad luck and are more w o r r i e d about " r e s p o n s i b l e d r i v e r ' s " h e a l t h , then showing di s a p p r o v e d o f h i s p o s s i b l e " f a u l t " , consequently the model should not be con-s i d e r e d as i l l u s t r a t i n g any p o s s i b l e d e t e r r e n t e f f e c t s of the f a u l t system. P o s s i b l y the remote r e l a t i o n s h i p between the f a u l t system and d e t e r r e n t s t o t r a f f i c a c c i d e n t s was b e s t s e t out by Blum and Kalven, who are s t r o n g proponents of the t o r t system w i t h r e s p e c t t o the t r a f f i c a c c i d e n t s . They concluded t h a t the -150-d e t e r r e n t p o i n t was a v e r y f a i n t argument on b e h a l f of the 89 f a u l t l i a b i l i t y p r i n c i p l e . " Compulsory Insurance In 1908 the f i r s t r e p o r t e d t r i a l i n B r i t i s h Columbia i n r e s p e c t of a n e g l i g e n c e a c t i o n i n v o l v i n g a motor v e h i c l e was 90 h e l d , and w i t h i n 16 years the f i r s t B r i t i s h Columbia case 91 d i s p u t i n g a motor v e h i c l e l i a b i l i t y p o l i c y was d e c i d e d . By 19 69 i t was e s t i m a t e d by the Motor V e h i c l e s Department t h a t 92 p e r c e n t of a l l d r i v e r s i n B r i t i s h Columbia were i n s u r e d and by 1972, two years a f t e r the i n t r o d u c t i o n of the compul-sory i n s u r a n c e p r o v i s i o n the f i g u r e has r i s e n t o an estimated 92 94 p e r c e n t . The purpose of the d i s c l o s u r e of t h i s data i s to i l l u s t r a t e t h a t l i a b i l i t y i n s u r a n c e has e x i s t e d i n B r i t i s h Columbia almost as long as the n e g l i g e n c e a c t i o n i n v o l v i n g the motor v e h i c l e . A l s o i t acknowledges the f a c t t h a t the mandatory coverage i n s t i t u t e d i n 19 70 has not a l t e r e d the number of i n s u r e d d r i v e r s t o any g r e a t e x t e n t . Consequently when one attempts to analyze the e f f e c t s of the compulsory i n s u r a n c e i n B r i t i s h Columbia one i s i n e f f e c t a n a l y z i n g the e f f e c t s of l i a b i l i t y i n s u r a n c e per se. As f a r as the u n i n s u r e d are concerned,, under e i t h e r a compulsory or v o l u n t a r y scheme they may be i r r e s p o n s i b l e , eg. h i g h r i s k d r i v e r s who would be on the a s s i g n e d r i s k p l a n i f they were i n s u r e d or -151-they may be i n d i v i d u a l s who are j u s t u n w i l l i n g t o conform to s o c i e t y ' s norms. In n e i t h e r case i s i t l i k e l y t h a t t h e i r l a c k of i n s u r a n c e coverage encourages these i n d i v i d u a l s to be a b e t t e r d r i v e r s , because they o b v i o u s l y do not r e g a r d t h e i r involvement i n an a c c i d e n t as s i g n i f i c a n t or l i k e l y , eg. they do not c a r r y i n s u r a n c e p r o t e c t i o n . To put the p o i n t s u c c i n c t l y , one i s comparing, the p o s s i b l e d e t e r r e n t e f f e c t , i n r e s p e c t of c a r e l e s s d r i v i n g which r e s u l t s i n t r a f f i c a c c i d e n t s , under l i a b i l i t y i n s u r a n c e i n which a s m a l l but f a i r l y c e r t a i n p e n a l t y ( i n c r e a s e d c o s t of insurance) w i t h a r a t h e r remote y e t c a t a s t r o p h i c s a n c t i o n 93 (a l a r g e s e t t l e m e n t or judgment). In summation i t would appear t h a t n e i t h e r a l t e r n a t i v e i s a s i g n i f i c a n t d e t e r r e n t to t r a f f i c a c c i d e n t s , i n the p r e s e n t 94 form. However i t has been suggested by Guido C a l a b r e s i t h a t by a l l o c a t i n g the c o s t s of a c c i d e n t s to the c o s t of t h a t a c t i v i t y , the market w i l l determine i n which a c t i v i t i e s people w i l l engage, and h y p o t h e t i c a l l y when a c c i d e n t cases are i n c l u d e d i n r i s k y v e n t u r e s , i n d i v i d u a l s w i l l be d e t e r r e d from p a r t i c i p a t -9 5 i n g t h e r e i n , There are a number of p r a c t i c a l problems w i t h t h i s approach, eg. d e c i d i n g which a c t i v i t y causes which c o s t , 96 but i t does p r o v i d e a f r e s h a n a l y s i s to an o l d problem. To conclude i t should be noted t h a t i n the r e c e n t study performed i n the U n i t e d S t a t e s , 6 8 p e r c e n t of those i n v o l v e d i n a c c i d e n t s c a u s i n g p e r s o n a l i n j u r y claimed t h a t the p r o s p e c t -152-of t o r t l i a b i l i t y made no d i f f e r e n c e t o t h e i r d r i v i n g behaviour 97 which r e s u l t e d m a c c i d e n t s . In r e s p e c t of the B r i t i s h Columbia experience i n 1970-71 when the h y b r i d system of compulsory l i m i t e d a c c i d e n t and l i a b i l i t y i n s u r a n c e was o p e r a t i v e , the number of highway c a s u a l t i e s has remained almost s t a b l e , eg. very c l o s e t o 1969 t o t a l s , (see Schedule XV). C o n c l u s i o n On the b a s i s o f the i n f o r m a t i o n p r e s e n t l y a v a i l a b l e i t would appear t h a t the d e t e r r e n c e o f bad d r i v i n g h a b i t s which r e s u l t i n a c c i d e n t s i s not a s i g n i f i c a n t component of the t o r t system i n p r a c t i c e and t h a t o t h e r means such as l i c e n c e suspensions or p r o b a t i o n s or f e a r of i n j u r y appear to be more s i g n i f i c a n t f a c t o r s i n the shaping of the a t t i t u d e s and per-formance of d r i v e r s . C u r r e n t l y the impact of such f a c t o r s i s unknown, but whatever r o l e they do p l a y i s thought to be much1 more important than t h a t of the t o r t system. Consequently r e p a r a t i o n schemes can be i n t r o d u c e d i n which the v i c t i m of motor v e h i c l e a c c i d e n t s can r e c o v e r damages almost immediately, and the promotion of t r a f f i c s a f e t y through the use o f e f f e c t i v e d e t e r r e n t s can take p l a c e a t a d i f f e r e n t time and p l a c e , eg. no need f o r the compensation of v i c t i m s and de t e r r e n c e of bad d r i v i n g a t t i t u d e s or behaviour to occur s i -multaneously. Schedule XV B r i t i s h Columbia T r a f f i c A c c i d e n t S t a t i s t i c s 1960 - 71 Year Deaths C a s u a l t i e s C a s u a l t y a c c i d e n t s C a s u a l t i e s per 100 r e g i s t e r e d v e h i c l e s C a s u a l t i e s per 1 m i l l i o n m i l e s v e h i c l e s per roadway m i l e 1960 294 11,605 7,796 2.1 3.0 — 1961 320 12,421 8,348 2.0 3.1 — 1962 385 13,767 9,078 2.1 3.2 — 1963 360 14,945 9,779 2.2 3.2 --1964 393 17,304 11,455 2.5 3.4 — 1965 500 18,074 11,978 2.4 3.2 — 1966 520 20 ,169 13,135 2.5 3.3 23.6 1967 559 20,559 13,155 2.4 3.1 24. 6 1968 574 21,519 13,759 2.3 3.0 •26.1 1969 542 23,077 15,333 2.3 3.1 27. 3 1970* 559 23 ,127 15,124 2.2 2.9 28.1 1971* 636 22,976 15,344 — — ' * On J u l y • 1, 19 70 p r o p e r t y damage minimum (for r e p o r t e d a c c i d e n t s ) was i n c r e a s e d from $100-$200 and hence may have a l s o a f f e c t e d r e p o r t e d c a s u a l t i e s . Sources - 1) Annual Reports - Superintendent of Motor V e h i c l e s f o r B.C. 2) Road and S t r e e t M ileage - D.B.3. 53-201. 3) Motor V e h i c l e T r a f f i c A c c i d e n t s - D.B.S. 53-206 4) Monthly summaries of Department of Motor V e h i c l e s - T r a f f i c A c c i d e n t s -154-However more r e s e a r c h i s r e q u i r e d t o determine which measures w i l l motivate the d r i v e r to adhere t o non-accident d r i v i n g behaviour. In a d d i t i o n a c o n c e r t e d and dynamic e f f o r t i s needed w i t h r e s p e c t t o the improvement of the highway environment, the de s i g n of s a f e t y f e a t u r e s i n the motor v e h i c l e , and the emergency care system. Of e s p e c i a l concern w i l l be the a l l o c a t i o n of s c a r c e r e s o u r c e s , eg. funds and e x p e r t i s e d u r i n g the t r a n s i t i o n from t h e - e r a of the motor v e h i c l e t o the e r a of mass r a p i d t r a n s i t . CHAPTER VII COMPULSORY INSURANCE, THE FAULT SYSTEM, THE COST OF  DIFFERENT COMPENSATION SCHEMES AND PUBLIC  ADMINISTRATION OF MOTOR VEHICLE INSURANCE I n t r o d u c t i o n Compulsory i n s u r a n c e , the f a u l t system, the c o s t o f d i f f e r e n t compensation schemes, and p u b l i c a d m i n i s t r a t i o n of motor v e h i c l e i n s u r a n c e r e p r e s e n t f o u r p o s s i b l e f a c e t s o f an automobile r e p a r a t i o n s p l a n . These items and t h e i r i m p l i e d a l t e r n a t i v e s may be c o n s i d e r e d as v a r i a b l e s i n an eq u a t i o n . In s i m p l i s t i c terms one i s s e a r c h i n g f o r a scheme which w i l l p r o v i d e immediate, e q u i t a b l e , and complete compensation at the lowest p o s s i b l e " c o s t " . However i n o r d e r t o r e a l i s t i c a l l y e v a l u a t e the " c o s t " of a p a r t i c u l a r p l a n , one must r e f l e c t on the l e g a l , economic, s o c i a l , p s y c h o l o g i c a l , and p o l i t i c a l r a m i f i c a t i o n s of such a system because compensation cannot be i s o l a t e d from i t s environment. U n f o r t u n a t e l y most of the forementioned f a c t o r s cannot be q u a n t i f i e d and hence when an i n d i v i d u a l , group, c o r p o r a t i o n , or government decides t h a t a s p e c i f i c combination of v a r i a b l e s w i t h r e s p e c t to motor v e h i c l e compensation i s to be p r e f e r r e d , they must, i f they are b e i n g r a t i o n a l , p l a c e s u b j e c t i v e weights on the advantages and disadvantages of the v a r i o u s components. However i t must be r e c o g n i z e d t h a t p r a c t i c a l l y everyone i n h i s r o l e as i n d i v i d u a l or as p a r t of an organ-i z a t i o n , eg. government or c o r p o r a t i o n , has a v e s t e d i n t e r e s t -155--156-i n the v a r i a b l e s which make up the r e p a r a t i o n s system. Hence an i n d i v i d u a l ' s l o g i c i s o f t e n d i s t o r t e d by h i s r o l e i n s o c i e t y and consequently one must c a r e f u l l y examine the rea s o n i n g of any p r o p o s a l which o r i g i n a t e s from a source p o s s i b l y s u b j e c t t o b i a s . In t h i s chapter the w r i t e r w i l l review the i s s u e s , t r y i n g t o i n d i c a t e the v a l i d i t y o f the c o n f l i c t i n g v i e w p o i n t s as i m p a r t i a l l y as p o s s i b l e , and then suggest i n some i n s t a n c e s why one approach p e r t a i n i n g t o one of the aspects of compens-a t i o n appears t o be c o n v i n c i n g . Q u i t e o b v i o u s l y such e v a l u a -t i o n s depend t o a g r e a t e x t e n t on i n d i v i d u a l v a l u e judgments and one's p e r c e p t i o n of the p a s t , p r e s e n t , and f u t u r e develop-ment of the t o r t law concept, the w e l f a r e and r o l e o f the i n d i v i d u a l i n s o c i e t y , and the economic system. However by e x p l o r i n g these p o i n t s and s u b j e c t i n g them to c l o s e s c r u t i n y , the w r i t e r hopes, at the very l e a s t , to focus a t t e n t i o n on those arguments which are r a t i o n a l and m e r i t a t t e n t i o n i n c h a r t -i n g the f u t u r e course of motor v e h i c l e compensation.• Compulsory Insurance By January 1, 1972, B r i t i s h Columbia, Saskatchewan, Mani-toba and Nova S c o t i a had compulsory automobile l i a b i l i t y i n -surance laws, and the f i r s t t h r e e p r o v i n c e s a l s o had mandat-ory requirements p e r t a i n i n g t o a c c i d e n t b e n e f i t insurance."*" 2 A l s o surveys taken m B r i t i s h Columbia i n 1970 , and i n Canada -157-i n 19 72, suggested t h a t compulsory i n s u r a n c e was a c c e p t a b l e t o the overwhelming m a j o r i t y of Canadians, eg. 88 p e r c e n t , and 9 7 p e r c e n t , r e s p e c t i v e l y , were i n favour of mandatory automobile i n s u r a n c e . Consequently, as f a r as t h i s w r i t e r i s concerned, the widespread adoption of compulsory i n s u r a n c e and the apparent p u b l i c acceptance t h e r e o f , permits him to review t h i s aspect of motor v e h i c l e compensation i n a r a t h e r c u r s o r y f a s h i o n . One l i n e o f argument put forward by i n s u r a n c e companies concerned t h e i r f e a r of governmental c o n t r o l , eg. compulsory i n s u r a n c e would i n e v i t a b l y l e a d to e x c l u s i v e governmental marketing of automobile i n s u r a n c e , or a t l e a s t s t r i c t govern-mental r e g u l a t i o n of r a t e s . The l a t t e r event has m a t e r i a l i z e d t o a c e r t a i n e x t e n t i n the form of the B r i t i s h Columbia Auto-mobile Insurance Board, and the former development may r e s u l t , but i n both i n s t a n c e s the cause of governmental involvement was and w i l l be, r e s p e c t i v e l y , the l a c k of c o m p e t i t i o n i n 4 the i n d u s t r y which leads to i n f l a t e d premiums. In the w r i t e r ' s o p i n i o n such occurences are not r e l a t e d to the implementation of a compulsory i n s u r a n c e scheme. A second o b j e c t i o n i n r e s p e c t of compulsory i n s u r a n c e was t h a t d r i v e r s and owners of v e h i c l e s would be d e p r i v e d of t h e i r freedom of c h o i c e , eg. to i n s u r e or not to i n s u r e . However as the Wootton Commission p o i n t e d out mandatory coverage had become common i n a number of o t h e r f i e l d s , eg. Workman's -158-Compensation, Unemployment Insurance and Medical Care, and such coverage was employed "to protect, preserve, and "5 permit a free society to prosper, and the same reasoning would s t i l l be applicable today. In the f i n a l analysis some portion of a l l of the d r i v i n g public must pay for the costs of compensation and i t i s more equitable that everyone con-t r i b u t e because of the semi-random nature of t r a f f i c accidents, eg. any d r i v e r may be involved i n an accident, and the maximum number of drivers should shoulder the uninsured motorist burden, eg. finance the Fund. Regarding economic arguments to compulsory requirements, enforcement problems, higher claims frequency, and propensity of drivers or owners to only purchase the minimum coverage, the evidence which was submitted to the Wootton Commission appeared to refute these claims. The information provided by the Report indicated that the enforcement problems were not overly expensive and the number of insureds did increase when insurance was made mandatory i n other j u r i s d i c t i o n s , eg. New York. In respect of the B r i t i s h Columbia experience t h i s writer suggests that the rather small (2 percent) increase i n the percentage of insured d r i v e r s , when compulsory insurance was introduced, was due to the r e l a t i v e l y high number of drivers and owners previously indemnified (92 percent), lax enforcement provisions, eg. no annual renewal of driver licence's which would require proof of insurance as a p r e r e q u i s i t e , and -159-t h e t r a n s i e n t nature o f many of B r i t i s h Columbia's m o t o r i s t s , eg. u n s e t t l e d and r e l u c t a n t to obey r u l e s ( B r i t i s h Columbia 7 has the h i g h e s t crime r a t e of a l l the Canadian p r o v i n c e s ) . P e r t a i n i n g t o the o t h e r two p o i n t s the Saskatchewan example showed more than 50 p e r c e n t of d r i v e r s purchased supplement-ed ary i n s u r a n c e , and a h i g h e r c l a i m s frequency which i s g e n e r a l l y a s s o c i a t e d w i t h compulsory i n s u r a n c e i s not an e v i l i f v i c t i m s who were f o r m e r l y d e s e r v i n g , but not com-9 pensated now r e c e i v e r e p a r a t i o n s . The B r i t i s h Columbia e x p e r i e n c e i s d i f f i c u l t t o a p p r a i s e s i n c e a c c i d e n t b e n e f i t i n s u r a n c e was i n t r o d u c e d at the same time as compulsory i n -surance, but i t i s known t h a t the c l a i m frequency of t h i r d p a r t y l i a b i l i t y c l a ims remained almost c o n s t a n t , eg. 8.2 per 100 i n s u r e d c a r s i n 1969 as compared w i t h 8.1 per 100 i n s u r e d c a r s i n 1970,"*"^ and a c c i d e n t b e n e f i t i n s u r a n c e was not u t i l i z e d t o i t s f u l l e s t intent.''""*" The other i s s u e s which are r a i s e d i n r e s p e c t of compulsory i n s u r a n c e , appear to be w i t h o u t substance. As i n d i c a t e d e a r l i e r i n t h i s t h e s i s , i n s u r a n c e , be i t v o l u n t a r y or compulsory, was not, and i s not intended to d e t e r or to c o n t r o l bad d r i v i n g performance, and hence the change from a v o l u n t a r y t o a compulsory scheme i s u n l i k e l y to have any marked e f f e c t on t r a f f i c s a f e t y (see chapter 6). The argument of the I n d u s t r y was t h a t i f a compulsory scheme v/ere i n t r o d u c e d many of those i n d i v i d u a l s who e x h i b i t e d bad d r i v i n g behaviour which was evidenced i n the form of c o n v i c t i o n s or a c c i d e n t s would be -160-e l i g i b l e f o r i n s u r a n c e , where as under a v o l u n t a r y scheme 12 they would not be covered, and d i s c o u r a g e d from d r i v i n g . However t h i s l o g i c i g n o r e s two important p o i n t s . F i r s t l y t h e r e was and i s , no guarantee t h a t an u n i n s u r e d m o t o r i s t w i l l s t a y o f f the road, and secondly p r i o r t o and a f t e r the adoption of compulsory i n s u r a n c e , a s s i g n e d r i s k p o o l s or s i m i l a r d e v i c e s were and are a v a i l a b l e i n order t o spread i n d i v i d u a l r i s k s amongst a l l i n s u r e r s i n p r o p o r t i o n t o t h e i r 13 automobile l i a b i l i t y i n s u r a n c e b u s i n e s s . T h e r e f o r e i t cannot be s t a t e d t h a t compulsory i n s u r a n c e has r e a l l y a l t e r e d u n d e r w r i t i n g judgment or the number of bad d r i v e r s who p l y our highways. L a s t l y no scheme i s f o o l p r o o f and t h e r e w i l l always be some u n i n s u r e d d r i v e r s , but compulsory i n s u r a n c e does narrow the gap between the number of i n s u r e d s , and the d r i v e r p opul-a t i o n . I f the Wootton Commission p r o p o s a l i s adopted, eg. f u r n i s h i n g and r e p l e n i s h i n g the T r a f f i c V i c t i m s Indemnity 14 Fund by means of a tax on g a s o l i n e , a l l d r i v e r s v/ould c o n t r i b u t e t o the p o o l , thereby r e d u c i n g the f i n a n c i a l burden which i s c u r r e n t l y borne by the " r e s p o n s i b l e " m o t o r i s t s , eg. 2 p e r c e n t premium tax on l i a b i l i t y i n s u r a n c e . In summary i t would appear t h a t a compulsory scheme has a l r e a d y become entrenched i n B r i t i s h Columbia and i s accepted by the overwhelming m a j o r i t y of d r i v e r s . There are a number of reasons why compulsory i n s u r a n c e enjoys t h i s f a v o u r a b l e s t a t u s :. -161-vis a vis v o l u n t a r y i n s u r a n c e : F i r s t l y i t i s more e q u i t a b l e i n r e s p e c t of the f i n a n c i a l burden. Secondly i t i n s u r e s more complete compensation coverage. T h i r d l y i t i s conducive t o the i n t e r n a l i z a t i o n o f the c o s t s o f motoring, eg. compensation i s p a i d t o a g r e a t e r e x t e n t by m o t o r i s t s as opposed to the p u b l i c at l a r g e (welfare b e n e f i t s ) . L a s t l y i t i s l e s s expensive and cumbersome t o oper a t e , eg. the r o l e of the T r a f f i c V i c t i m s Indemnity Fund w i l l be reduced and the r o l e of the s a f e t y and f i n a n c i a l r e s p o n s i b i l i t y laws can be e l i m i n a t e d . The Fault-System As was d i s c u s s e d i n the second chapter of t h i s t h e s i s the t o r t system has e x i s t e d f o r long time, and y e t over the years the r u l e s and the o b j e c t i v e s of t h i s system have changed c o n s i d e r a b l y i n order t o keep the law i n ste p w i t h the a t t i t u d e s and c o n d i t i o n s of d i f f e r e n t e r a s . When the law of t o r t s came i n t o prominence i n the n i n e t e e n t h century i t a p p l i e d t o : an environment of slow moving v e h i c l e s and animals wherein a conduct expected of man was s i g n i f i c a n t l y i n f l u e n c e d by customary r i g h t s . 1 5 Today, the s t r e s s e s and s t r a i n s and o t h e r c o n d i t i o n i n g i n f l u e n c e s a r i s i n g from the complex i n g r e d i e n t s of the t w e n t i e t h c e n t u r y , t e c h n o l o g i c a l c i v i l i z a t i o n and the s o c i a l s t r u c t u r e i n and around i t ... b r i n g s men i n t o a much c l o s e r i n t e r - r e l a t i o n s h i p w i t h other men and machines.16 -162-L i k e w i s e over the same p e r i o d t h e r e has been a change i n the emphasis on which goals the t o r t law would s e r v e . Hence, i n the p a s t as much a t t e n t i o n was p a i d to s e e i n g t h a t the defendant got what he deserved f o r h i s wrong doing as t h e r e was to i n q u i r i n g whether the p l a i n t i f f r e c e i v e d as much or more than he needed as a matter of compensation or r e h a b i l i t a t i o n . Today, w i t h the i n c r e a s e i n the payment of damages by c o l l e c t i v e agencies l i k e i n s u r a n c e companies, or the s t a t e i t s e l f , and i n such c a s e s , w i t h the p u n i t i v e elements (never capable of e n t i r e l y r a t i o n a l e x p l a n a t i o n ) thus completely d e s t r o y e d , i t was perhaps i n e v i t a b l e t h a t more a t t e n t i o n should be g i v e n to the q u e s t i o n of compensation.18 A l s o t h e r e i s , the i n e v i t a b l e gap between what r e a l l y happened and o u r - r e c o n s t r u c t i o n of the events through the f a l l i a b l e , f a c t f i n d i n g p rocess - e s p e c i a l l y so i n automobile l i t i g a t i o n . ^ In r e s p e c t of t h i s l a t t e r a p p r a i s a l i t i s c l a i m e d t h a t , the t o r t - l i a b i l i t y system was never designed f o r s i t u a t i o n s a r i s i n g out of h i g h speed ground t r a n s -p o r t a t i o n , where a c c i d e n t s occur w i t h s p l i t - s e c o n d t i m i n g , [and] where the q u e s t i o n of f a u l t i s d i f f i c u l t and i l l u s o r y . 2 0 In a d d i t i o n the q u e s t i o n of i n d i v i d u a l c u l p a b i l i t y i s dubious s i n c e , one study has shown t h a t the automobile d r i v e r must make 200 o b s e r v a t i o n s and 20 d e c i s i o n s each m i l e he d r i v e s . The p o t e n t i a l i s so g r e a t t h a t i t would be n a t u r a l f o r even the most c a r e f u l d r i v e r s to make e r r o r s i n judgment. The average d r i v e r does make e r r o r s , one per each two m i l e s d r i v e n . ^ 1 -163-Consequently, a s u b s t a n t i a l but l a r g e l y immeasurable member of v i o l a t i o n s and crashes occur which i n v o l v e g e n e r a l l y competent d r i v e r s who are s u f f e r i n g temporary l a p s e s from t h e i r normal adequate l e v e l s . 2 2 A l s o s i n c e a number of d r i v e r s "cannot" or " w i l l not" 23 conform t o s a t i s f a c t o r y standards o f d r i v i n g b ehaviour, i t i s d i f f i c u l t t o envisage many automobile a c c i d e n t cases i n which m o r a l i t y and j u s t i c e are being s a t i s f i e d by the i m p o s i t i o n o f the u s u a l t o r t p e n a l t y , eg. damages. E s p e c i a l l y 24 when "the amorphous standard of reasonable c a r e " , i s an o b j e c t i v e measure and hence q u i t e i n a p p l i c a b l e i n many cases, eg. when a person i s unable or u n w i l l i n g to adhere t o the stand a r d , or by chance a d r i v e r e r r o r o r l a p s e has o c c u r r e d at an inopportune time. In the w r i t e r ' s o p i n i o n m o r a l i t y and j u s t i c e w i l l o n l y be served i n s i t u a t i o n s i n which the d r i v e r has performed i n a c l e a r l y blameworthy f a s h i o n , and he i s p h y s i c a l l y and m e n t a l l y capable of conforming t o non-accident d r i v i n g behaviour almost 100 p e r c e n t of the time. Those d r i v e r s who cannot or w i l l not c o n s i s t e n t l y m a i n t a i n a c e r t a i n standard of d r i v i n g , s h o u l d not be l i c e n s e d because d r i v i n g should be viewed as a p r i v i l e g e which i s onl y granted t o those who are able and w i l l conform t o s p e c i f i e d norms. The d e s i r e d optimum i s the t r a d e - o f f p o i n t where i n d i v i d u a l freedom of a c t i o n equals p u b l i c s a f e t y on the highway. -164-In r e p l y t o the c r i t i c i s m s o f the m o r a l i t y and j u s t i c e aspects of the t o r t system, the defendants s t a t e , our s t u d i e s i n d i c a t e t h a t a l a r g e p r o p o r t i o n of a l l automobile a c c i d e n t s are uncomplicated events i n which the f a u l t d e t e r m i n a t i o n i s ve r y easy and t h a t many of the more complex2accidents can be a c c u r a t e l y analyzed by e x p e r t s , and, I t o f f e n d s the c o n s c i e n c e of s o c i e t y t h a t the c a r e l e s s and i r r e s p o n s i b l e m o t o r i s t should r e c e i v e the same b e n e f i t s as the person he i n j u r e d [as would occur under a n o - f a u l t scheme]. In a d d i t i o n two of the more a r t i c u l a t e and r a t i o n a l ad-voc a t e s of the t o r t law, Blum and Kalven, a s s e r t t h a t : 1. "The whole concept of f a u l t , even i n our t o r t s system, i s so c l o s e l y t i e d to views on p e r s o n a l r e s p o n s i b i l i t y and hence t o v a l u e s t h a t have deep c u l t u r a l and r e l i g i o u s r o o t s . 2 ^ 2. " A l l a d j u d i c a t i o n i s v u l n e r a b l e to inadequacies of e v i d e n c e " , s o w h y s i n g l e out auto a c c i d e n t s . 3. The f a c t t h a t , "the law, exaggerates the c o n t r i b u t i o n of the a c t o r ' s f a u l t t o an a c c i d e n t " , eg. other c a u s a l l y c o n t r i b u t i n g f a c t o r s - highway d e s i g n , t r a f f i c d e n s i t y , e t c . , i s not p e c u l i a r s i n c e "the law d e l t w i t h the a c t o r because he i s a r e a c h a b l e cause and because h i s c o n t r i b u t i o n t o the event was r e l e v a n t and d e c i s i v e . " 2 9 4. I t does not matter t h a t t o r t law does not f i t the crime because i t s purpose is"to compensate and not to punish".30 -165-5. "The p o p u l a r i m p r e s s i o n t h a t a l l d r i v e r s are a l i k e i n b e i n g o c c a s i o n a l l y n e g l i g e n t i s v e r y l i k e l y an o v e r e s t i m a t i o n f o r i t f a i l s t o take account of the many minor ad-justments i n conduct which are made when men engage i n what seems to be e s s e n t i a l l y the same r i s k y b e h a v i o r " , some d r i v e r s take more r i s k s of a g i v e n magnitude then others.31 The w r i t e r ' s response to the forementioned p o i n t s would 1. The b e l i e f s and a t t i t u d e s of our s o c i e t y i n the l a s t t h i r d of the t w e n t i e t h century are c o n s i d e r a b l y d i f f e r e n t from those of p r e v i o u s c e n t u r i e s , p a r t i c u l a r l y the n i n e t e e n t h , eg. d e c l i n e of the importance of r e l i g i o n , the. new m o r a l i t y i n r e s p e c t of p e r s o n a l and c o r p o r a t e b e h a v i o u r , the tendency to blame the system, the environment, the government, or s o c i e t y , r a t h e r than the i n d i v i d u a l - Vietnam war crimes, and the w i l l i n g n e s s of s o c i e t y t o r e l i e v e the i n -d i v i d u a l of p o s s i b l y c r u s h i n g f i n a n c i a l hard-s h i p s even where the i n d i v i d u a l may have been a t f a u l t - workmen's compensation. 2. The automobile a c c i d e n t should be s e p a r a t e d from ot h e r a c c i d e n t s because of the s p l i t - s e c o n d time sequences, which make i t d i f f i c u l t i f not imposs-i b l e , t o r e c r e a t e the t r u e a c c i d e n t p i c t u r e , and hence, lawyers s u p p o r t i n g the t r i a l j u r y are w i l l i n g to admit t h a t i n the o r d i n a r y automobile a c c i d e n t , the case t h a t i s a c t u a l l y t r i e d by a j u r y i s a case t h a t never i n f a c t took p l a c e , and i s the r e s u l t of c o n j e c t u r a l r e c a l l , i m a g i n a t i o n , c o l o u r f u l d r a m a t i z a t i o n , and pure i n v e n t -i v e n e s s . 32 3. The f a c t t h a t the law exaggerates the i n d i v i d u a l ' s r o l e i s u n j u s t and undoubtedly i s the r e s u l t of the emphasis on the need f o r a defendant and the a n a c h r o n i s t i c concept of " t o t a l " i n d i v i d u a l r e s -p o n s i b i l i t y . However wit h the r e c o g n i t i o n of o t h e r c a u s a l f a c t o r s and p o s s i b l e defendants, -166-and development of other forms of compensation systems t h i s i n e q u i t y s h o u l d be e l i m i n a t e d . 4. From a m o r a l i t y v i e w p o i n t the law should f i t the crime and the simple answer i n r e s p e c t of t o r t law i s to segregate the awarding of compensation from the d e t e r m i n a t i o n of punishment. 5. C e r t a i n l y some d r i v e r s are b e t t e r or more f o r t -unate than o t h e r s , eg. i n v o l v e d i n fewer a c c i d e n t s , but u n l e s s s o c i e t y i s prepared to r e s t r i c t l i c e n c e s to superb or f o r t u n a t e d i r v e r s , i t seems p a r a d o x i c a l t h a t s o c i e t y should permit such d i r v e r s on the road and then when the i n e v i t a b l e a c c i d e n t r e s u l t s , because of f a c t o r s beyond t h e i r c o n t r o l , to assess f a u l t on an i n d i v i d u a l b a s i s , eg. s o c i e t y has allowed these i n d i v i d u a l s on the highway and t h e r e f o r e , l o g i c a l l y , s h ould bear p a r t of the f i n a n c i a l burden and l e g a l r e s p o n s i b i l i t y f o r t r a f f i c a c c i d e n t s . I f l i c e n c e s were r e s t r i c t e d t o capable d r i v e r s , as the w r i t e r suggests, then t h i s approach would be more v a l i d . These answers* r e p r e s e n t One person's p o i n t of view, buL b a s i c a l l y one's stand on the i s s u e s depends on h i s p e r c e p t i o n of the r o l e of p e r s o n a l r e s p o n s i b i l i t y i n the t w e n t i e t h cent-ury, the accuracy of t o r t t r i a l s , p e r t a i n i n g t o motor v e h i c l e s a c c i d e n t s , and the degree of i n d i v i d u a l c u l p a b i l i t y i n t r a f f i c a c c i d e n t s . Consequently i n the w r i t e r ' s o p i n i o n the m o r a l i t y and j u s t i c e of today's s o c i e t y w i l l not be a d v e r s e l y a f f e c t e d by the a b o l i t i o n of the f a u l t system i n r e s p e c t of t r a f f i c a c c i d e n t s . Cost The c o s t reason f o r the of automobile a g i t a t i o n f o r i n s u r a n c e reform of was, and i s , the major the t r a f f i c a c c i d e n t -167-compensation system. The scope of t h i s t h e s i s does not permit an a c t u a r i a l a n a l y s i s of the c o s t of v a r i o u s schemes, but i t i s p o s s i b l e to i d e n t i f y the expenses o f the p r e s e n t system, and to suggest which f a c t o r s can be e l i m i n a t e d under d i f f e r e n t p r o p o s a l s . A l s o i t i s m a n i f e s t t h a t the c o s t of automobile i n s u r a n c e w i l l depend on the range and s i z e of b e n e f i t s , and the degree to which o t h e r elements i n the t r a f f i c a c c i d e n t p i c t u r e share the burden of a c c i d e n t c o s t s . In any motor v e h i c l e i n s u r a n c e scheme some a d m i n i s t r a t i v e expenses w i l l be necessary i n o r d e r t o determine the v a l i d i t y and s i z e of c l a i m s . However as i l l u s t r a t e d i n Schedules XVI and XVII the two expense f a c t o r s which can be e l i m i n a t e d or reduced are lawyers' fees and agents' commissions. Some i n d i v i d u a l s c l a i m t h a t a pure n o - f a u l t p l a n would l e a d to g r e a t e r lawyer involvement and expense because of the a n t i -c i p a t e d d i s p u t e s between claim a n t s and i n s u r e r s as to the 33 e l i g i b i l i t y f o r and extent of compensation. T h i s has not proved to be the case i n p r a c t i c e i n r e s p e c t of a c c i d e n t 34 35 b e n e f i t s i n s u r a n c e i n B r i t i s h Columbia, or Saskatchewan. Agents' Commissions At the p r e s e n t time 12 1/2C of every premium d o l l a r i s absorbed by i n s u r a n c e agents, u n l e s s the i n s u r e d i s covered by -16 8-Schedule XVI Cost of Claimants' Lawyer Fees 1. Average lawyer's fee f o r t r a f f i c a c c i d e n t s i n v o l v i n g i n j u r y or death, eg. l i t i g a t i o n or s e t t l e m e n t = 15.9% 2. Wootton Commission's sample i n d i c a t e d 225/623 or 36.1% of those r e c e i v i n g a net t o r t s e t t l e m e n t or award, h i r e a lawyer.1 3. Consequently the c o s t of c l a i m a n t s ' lawyers as a percentage of a l l net t o r t awards = 15.9 % x 36.1% = 5.7% (assuming t h a t the 63.9% of net t o r t s e t t l e m e n t cases i n which lawyers were not h i r e d were of i d e n t i c a l average s i z e , but q u i t e o b v i o u s l y such i s not the case. eg. i f a lawyer i s h i r e d the s e t t l e m e n t i s l a r g e r . Hence 5.7% i s a very c o n s e r v a t i v e e s t i m a t e . 4. I f the above e s t i m a t e i s employed the c o s t of a c l a i m -ant's lawyer out of average premium d o l l a r = 6 2.5jzf x 5.7% = 3.6$* 5. In r e a l i t y the t r u e c o s t of c l a i m a n t lawyer fees i s probably a t l e a s t 15.9% x 50% (eg. s e t t l e m e n t s or awards i n which c l a i m a n t s h i r e a lawyer.amount to one-half of the t o t a l v a l u e of the s e t t l e m e n t s or awards which are made),2 - 8.0%. 6. T h e r e f o r e a more r e a l i s t i c , but s t i l l c o n s e r v a t i v e e s t i m a t e would p l a c e the c o s t of the c l a i m a n t ' s lawyer's fees a t 6 2. 5jz5 x 8.0% = 5.0jd. Sources: 1) B r i t i s h Columbia Royal Commission on Automobile Insurance, p. 99, 388 and 405. 2) L i n d e n , A l l e n . The Report of the Osgoode Hall Study on Compensation for Victims of T r a f f i c Accidents, Ryerson Press 1965. Ch. VI, p. 19. -169-Schedule XVII Breakdown of the Premium D o l l a r D i r e c t W r i t e r s 1967 L i a b i l i t y A c c i d e n t and No-Fault X B e n e f i t s Premium Tax 2. 00 2. 00 2. 00 — 0 A d m i n i s t r a t i v e Expense 16. 0 11. 5 11. 5 15. 5° Agents Commission 12. 5 .12. 5 12. 5 P r o f i t and Contingency * 2. 5 0. 5 0. 5 0. 5 Expense F a c t o r 33. 0 26. 5 26. 5 16. 0 A l l o c a t e d Claims Ex-pense 4" 4. 2 8, 7 4. 0 4. 0 Claimant's Lawyer Fees 5. 0 5. 0 — T o t a l Expenses 42. 2 40. 2 30. 5 20. 0 Loss Payout 57. 8 59 . 8 69 . 5 80. 0 Premium D o l l a r $1. 00 $1. 00 $1. 00 $1. 00 * The components items are a d j u s t a b l e but t o t a l i s a l l o w a b l e maximum. + i n c l u d e s a d j u s t e r and l e g a l fees p a i d by i n s u r e r i n r e s p e c t of i d e n t i f i a b l e c l a i m s X p o t e n t i a l expense i t e m i z i n g i f a l l lawyers' fees and agents commissions were e l i m i n a t e d , eg. s i m i l a r to Saskatchewan scheme. 0 4 p e r c e n t i n c r e a s e under n o - f a u l t to cover i n c r e a s e i n expenses f o r m e r l y performed by agents. Sources - 1) B r i t i s h Columbia Royal Commission on Automobile Insurance, Queen's P r i n t e r 1968, p. 305, 314 and 325. 2) Schedule,XVI 3) Canadian U n d e r w r i t e r s ' A s s o c i a t i o n , Accident Benefits Submission to B r i t i s h Columbia Automobile Insurance Board - 1972, p. 12. -170-a d i r e c t w r i t e r . The l a t t e r companies s e l l t h e i r p o l i c i e s over the counter at t h e i r p l a c e o f b u s i n e s s . The ot h e r companies employ agents who operate from separate o f f i c e s and use the p e r s o n a l s e l l i n g technique i n order t o market automobile p o l i c i e s . The f u n c t i o n s performed by agents i n c l u d e : marketing the p o l i c y , f i n d i n g i n s u r a n c e companies which w i l l cover h i g h r i s k d r i v e r s , e x p l a i n i n g the p r o v i s i o n s of a p o l i c y t o an i n s u r e d , a d v i s i n g an i n s u r e d as to h i s i n s u r a n c e needs, i n f o r m i n g the i n s u r e d as t o h i s r i g h t s when an a c c i d e n t o c c u r s , and a c t i n g on b e h a l f of the i n s u r e d i f t h e r e i s a d i s p u t e w i t h the i n s u r a n c e company. In r e p l y Mr. A. Schwaia, a s e n i o r u n d e r w r i t e r w i t h Wesco Insurance Co., which i s a d i r e c t w r i t e r s t a t e s t h a t : 1) auto-mobile p o l i c i e s can be marketed by a d v e r t i s i n g , 2) h i g h r i s k d r i v e r s should be f o r c e d t o fend f o r themselves, 3) the s e r v i c e s of d i r e c t w r i t e r s are as good as those o f companies which use agents, 4) i n f o r m a t i o n and advice c o n c e r n i n g the p o l i c y can be s u p p l i e d at the i n s u r e r ' s p l a c e o f b u s i n e s s , and 5) the agent cannot i m p a r t i a l l y r e p r e s e n t the i n s u r e d a g a i n s t the in s u r a n c e company because the agent i s l i n k e d t o the i n s u r a n c e company. In the w r i t e r ' s o p i n i o n f o u r fundamental q u e s t i o n s must be r e s o l v e d i n o r d e r t o advocate acceptance of a d i r e c t w r i t e r -171-scheme. F i r s t l y the h i g h r i s k d r i v e r , who has not had h i s l i c e n c e suspended must be covered by i n s u r a n c e . The machinery i n theory i s a l r e a d y a v a i l a b l e t o ensure t h a t such d r i v e r s can o b t a i n i n s u r a n c e a t reasonable r a t e s . The F a c i l i t y which p r o v i d e s c o i n s u r a n c e of h i g h r i s k d r i v e r s and the s h a r i n g o f t h e i r l o s s e s amongst a l l i n s u r e r s has been o p e r a t i v e f o r a number of y e a r s . I t i s the s u c c e s s o r to the Assigned Risk Plans i n which i n s u r e r s were a s s i g n e d r i s k s i n p r o p o r t i o n to t h e i r automobile l i a b i l i t y premium b u s i n e s s . The l o s s e s however were i n c u r r e d by the i n d i v i d u a l companies who h e l d the r i s k and were not shared by the I n d u s t r y . The o t h e r v i t a l cog i s the Automobile Insurance Board which has the r e s p o n s i b i l i t y of r e g u l a t i n g r a t e s and i n s u r i n g t h a t a l l d r i v e r s can o b t a i n i n s u r a n c e at reasonable r a t e s . Hence i t should be p o s s i b l e f o r the h i g h r i s k d r i v e r t o purchase i n s u r a n c e at reasonable r a t e s and without too much t r o u b l e p r o v i d i n g the Board i s w i l l i n g t o f u l f i l i t s appointed r o l e . The second p o i n t concerning the marketing o f and p r o v i d i n g i n f o r m a t i o n , a d v i c e , and s e r v i c e f o r automobile p o l i c i e s i n o u t l y i n g a r e a r i s a problem. Undoubtedly o f f i c e s c o u l d be s e t up i n s t r a t e g i c l o c a t i o n s to p r o v i d e i n s u r a n c e t o unpopulated areas, but there would be l e s s p e r s o n a l c o n t a c t between the i n s u r e d and h i s i n s u r a n c e r e p r e s e n t a t i v e because of the g r e a t e r d i s t a n c e between the two p a r t i e s . Such d i f f i c u l t i e s are not r e a l l y insurmount-able i f the system i s w e l l o r g a n i z e d and working e f f i c i e n t l y . —172-A l s o much of the p e r s o n a l c o n t a c t can be r e p l a c e d by telephone or m a i l communication. The t h i r d q u e s t i o n r e l a t e s t o the e d u c a t i o n of the p u b l i c as to t h e i r i n s u r a n c e needs. The w r i t e r f e e l s t h a t i f i n s u r e r s employed i n f o r m a t i o n a l advertisements and i f i n s u r a n c e company p e r s o n n e l were prepared to p r o v i d e i n f o r m a t i o n and a d v i s e to i n s u r e r s then t h i s problem can be l a r g e l y s o l v e d . E s p e c i a l l y when d r i v e r s become f a m i l i a r w i t h the system a f t e r some years of o p e r a t i o n . L a s t l y the b i g g e s t b a r r i e r t o a d i r e c t w r i t i n g scheme i s the p o s i t i o n of the i n d u s t r y . The t h r e e l a r g e r a t i n g bureaux have shown no i n c l i n a t i o n t o move toward such a system and. u n t i l at l e a s t one of these bureaux and i t s membership does, d i r e c t w r i t i n g w i l l not be u t i l i z e d t o any g r e a t e x t e n t . There i s a n a t u r a l r e l u c t a n c e on the p a r t of i n s u r a n c e companies to abandon the agency system. The agents p r o v i d e the same companies w i t h automobile i n s u r a n c e b u s i n e s s i n o t h e r areas of North America and b u s i n e s s i n o t h e r " l i n e s " of i n s u r a n c e i n B r i t i s h Columbia. Consequently the i n s u r a n c e companies are caught i n a squeeze between the consumer who wants l e s s expensive automobile i n s u r a n c e and the agents who p r o v i d e the companies with p r o f i t a b l e b u s i n e s s i n other " l i n e s " and i n o t h e r j u r i s d i c t i o n s . There would appear to be t h r e e ways i n which t h i s r e l u c t a n c e -173-to accept a d i r e c t w r i t e r system c o u l d be r e s o l v e d . F i r s t l y by means of c o m p e t i t i o n from d i r e c t w r i t e r s ( L i b e r t y Mutual Insurance Co., Wesco Insurance Co., B.C. M o t o r i s t s Insurance Co., and Vanco Insurance Co.) Secondly by r e g u l a t i n g r a t e s . The Board would s e t the premiums at such a l e v e l t h a t o n l y d i r e c t w r i t e r s c o u l d operate at a p r o f i t . T h i r d l y a governmental monopoly c o u l d be i n t r o d u c e d . In the w r i t e r ' s o p i n i o n a combination of the f i r s t and second methods would appear to be most expedient. In d i s c u s s i n g the m e r i t s of a d i r e c t w r i t i n g scheme one must not expect t h a t such a p l a n would completely e l i m i n a t e the 12.5<r expense f a c t o r . Instead of p e r s o n a l s e l l i n g , a d v e r t i s i n g would be employed. T h i s expense must be c a r e f u l l y c o n t r o l l e d or the c o s t savings r e s u l t i n g from the a d o p t i o n of a d i r e c t w r i t i n g scheme w i l l absorbed by a d v e r t i s i n g expenses. In a d d i t i o n the p r o v i d i n g of a d v i c e , i n f o r m a t i o n , s e r v i c e , and b i l l i n g which i s p r e s e n t l y p r o v i d e d by an agent w i l l have to be done by i n -s u r e r s themselves. T h e r e f o r e although i t i s reasonable to expect some s i g n i f i c a n t savings from a d i r e c t w r i t e r system, i e . e s t i m -ated 8C per premium d o l l a r , 4.5$ of the p r e s e n t 12.50 expense per premium d o l l a r w i l l remain. -174-Other C o n s i d e r a t i o n s • . . As mentioned e a r l i e r the 2 p e r c e n t premium on t h i r d p a r t y l i a b i l i t y p o l i c i e s which f i n a n c e s the T r a f f i c V i c t i m ' s Indemnity Fund, c o u l d be e l i m i n a t e d , and r e p l a c e d by a g a s o l i n e tax which would mean t h a t a l l d r i v e r s would share the burden, and a l s o t h a t the expense f a c t o r i n r e s p e c t of the premium d o l l a r would be reduced. In a d d i t i o n two o t h e r c o s t s which must be c o n s i d e r e d i n the contemplation of a s w i t c h to a n o - f a u l t p r o p o s a l are the i n c r e a s e i n the number of i n s u r e d s and the p o s s i b l e i n c r e a s e i n f r a u d u l e n t c l a i m s . In chapter V of t h i s t h e s i s i t was i n d i c a t e d t h a t approximately 45 p e r c e n t of a l l v i c t i m s r e c e i v e 3 6 t h i r d p a r t y l i a b i l i t y i n s u r a n c e b e n e f i t s , where as one may r e a s o n a b l y expect the r e c o v e r y r a t e under a f i r s t p a r t y system to reach approximately 80-90 p e r c e n t or more, depending on the scope of b e n e f i t s . T h i s d e f i n i t e l y i s a l e g i t i m a t e concern, and must be c a r e f u l l y examined i n p r e d i c t i n g the c o s t of premiums under a n o - f a u l t scheme. The o t h e r commonly mentioned source of -17 5-i n c r e a s e d c o s t p e r t a i n s to f r a u d and c o l l u s i o n , but i n 37 38 p r a c t i c e i n B r i t i s h Columbia, and Saskatchewan , because of the requirement to g i v e n o t i c e of a c l a i m w i t h i n a s h o r t p e r i o d a f t e r the occurrence of the a c c i d e n t , the frequency of such i n c i d e n t s has been no h i g h e r than those which arose under the t o r t l i a b i l i t y system. A l s o i t should be r e c o g n i z e d t h a t under a f i r s t p a r t y p l a n , i n s u r e r s would be ab l e t o p r e d i c t l o s s e s w i t h a g r e a t e r degree of accuracy because, "both elements of the r i s k o f l o s s how o f t e n claims w i l l be p r e s e n t e d ( a c c i d e n t and claims frequency) and how much w i l l be p a i d (average c l a i m c o s t ) , " 39 can be determined. Under the t h i r d p a r t y system o n l y the 40 . f i r s t element can be est i m a t e d . Consequently the r a t i n g system i s more l o g i c a l , e q u i t a b l e , and q u i t e p o s s i b l y more e f f i c i e n t . I f one i s going t o attempt t o d i s c o v e r ways of r e d u c i n g automobile i n s u r a n c e premiums two oth e r a s p e c t s of i n s u r a n c e demand a t t e n t i o n , 1) Decreasing the b e n e f i t coverage by s e t t i n g compensation l i m i t s and/or making auto i n -surance excess as opposed t o f i r s t l o s s i n s u r a n c e , 4 1 and 2) U t i l i z i n g other sources i n a d d i t i o n to the owners or d r i v e r s of motor v e h i c l e s , eg. ma-n u f a c t u r e r s of v e h i c l e s and government de-partments r e s p o n s i b l e f o r highway d e s i g n and upkeep. 4^ - 1 - 7 6 -In r e s p e c t of the f i r s t a l t e r n a t i v e , the scope and degree of b e n e f i t s , t h e r e i s a wide div e r g e n c e of o p i n i o n . No one w i l l d i s a g r e e t h a t b u r i a l , r e h a b i l i t a t i o n , and m e d i c a l expenses and l o s s of income sh o u l d be covered, but the e x t e n t of compensation i s d e b a t a b l e . In t h i s w r i t e r ' s o p i n i o n t h e r e i s a c o n f l i c t between the a v a i l a b i l i t y of i n s u r a n c e at the lowest p o s s i b l e r a t e s f o r a l l , and the demand f o r complete indemnity. F o r t u n a t e l y the use of a compulsory minimal coverage p l u s the r i g h t t o t o r t a c t i o n or v o l u n t a r y supplementary i n s u r a n c e (under a n o - f a u l t scheme) l a r g e l y overcomes t h i s quandry. S t i l l t h e r e i s the problem of d e c i d i n g on the b e n e f i t s under the compulsory s e c t i o n of the a c c i d e n t i n s u r a n c e package, and i t i s d i f f i c u l t t o gauge what the c u t - o f f p o i n t should be i n the absence of a c t u a r i a l d a ta. However t h i s w r i t e r b e l i e v e s t h a t compulsory i n s u r a n c e should p r o v i d e l o s s of income b e n e f i t s approximately equal t o the average p e r s o n a l income i n the p r o v i n c e , w i t h lower b e n e f i t s f o r those not e a r n i n g such amounts, eg. must be some i n c e n t i v e f o r v i c t i m t o r e t u r n to work. The c u r r e n t indemnity p e r t a i n i n g t o b u r i a l , m e d i c a l , and r e h a b i l i t a t i o n expenses appears to be s a t i s f a c t o r y . The more heated c o n t r o v e r s y a t p r e s e n t i s whether "pain and s u f f e r i n g " damages should be a v a i l a b l e under a n o - f a u l t scheme. The b a s i c argument f o r the r e t e n t i o n of t h i s "head " of damages i s t h a t i t i s t r a d i t i o n a l , and f i l l s the gap i n - 1 7 7 -compensation i n cases i n which the young v i c t i m i s unable t o reach h i s or her f u l l p o t e n t i a l , eg. a l o s s of income award i n t o r t case i s based t o some extent on a n t i c i p a t e d e a r n i n g s , but i s g r e a t l y i n f l u e n c e d by the v i c t i m s c u r r e n t economic s t a t u s , and h i s c u r r e n t l e v e l o f advancement-education 43 or p r o f i c i e n c y i n h i s o c c u p a t i o n . In a d d i t i o n p a i n and s u f f e r i n g f u r n i s h e s r e p a r a t i o n s f o r l o s s o f d i g n i t y ( d i s -figurement) i n a b i l i t y t o pursue a chosen c a r e e r , and a c t u a l 44 p h y s i c a l and mental p a i n . In r e p l y the c r i t i c s s t a t e t h a t p a i n and s u f f e r i n g i s s u b j e c t t o f a b r i c a t i o n , e x a g g e r a t i o n and h a l l u c i n a t i o n , 45 and i m p o s s i b l e t o measure p r e c i s e l y . In a d d i t i o n t h e r e i s an i n d i c a t i o n t h a t i n B r i t i s h Columbia those who r e c e i v e such awards do not r e a l l y deserve or need them, eg. minor i n j u r y cases r e c e i v e almost f u l l compensation, where as p e r s o n a l i n j u r y and f a t a l i t y cases r e a l i z e only minimal 46 b e n e f i t s . A l s o some commentators a s s e r t t h a t the n o t i o n o f i n d i g n i t y as p a r t of p h y s i c a l i n j u r y law should not be r e -cognized i n a damage system because d i g n i t a r y harm or vengeance does not have a p l a c e i n a modern scheme f o r h a n d l i n g p e r s o n a l . . 47 i n j u r i e s . However the Accident Compensation B i l l i n New Z e a l a n d , ^ the Workmen's Compensation Act i n B r i t i s h Columbia,^ 50 and the Automobile Accident Insurance Act i n Saskatchewan a l l p r o v i d e some form of non-economic l o s s compensation i n the case of permanent i n j u r y or d i s f i g u r e m e n t . -17 8-Consequently i t would appear t h a t the a l t e r n a t i v e s i n r e s p e c t of non-economic damages a r e : 1. E l i m i n a t i n g p a i n and s u f f e r i n g as a "head" of damages, 2. paying "pain and s u f f e r i n g " damages on the b a s i s of a schedule, or 3. p e r m i t t i n g an a r b i t r a t e r t o determine the amount, i f any, of non-economic damage awards. I f such awards are to be i n c l u d e d i n the compensation system the l a t t e r i s p r e f e r a b l e s i n c e i t allows i n d i v i d u a l case c o n s i d e r -a t i o n , but would o b v i o u s l y be more c o s t l y and slower than the s c h e d u l i n g of b e n e f i t s . Again the most expedient and i n some way the most e q u i t a b l e means i s to make such coverage o p t i o n a l so those i n d i v i d u a l s who d e s i r e such coverage can purchase i t f o r a p r i c e , and i f t h i s approach were adopted then i n -d i v i d u a l case d e t e r m i n a t i o n s should p r e v a i l . Recently i n separate a r t i c l e s i t has been proposed, by 51 52 Keeton and O'Connell, and C a l a b r e s i , t h a t m o t o r i s t s be g i v e n a c h o i c e as to which system ( f a u l t or n o - f a u l t ) they p r e f e r , and permit them to i n s u r e under t h a t scheme. The d i f f i c u l t y i n p r a c t i c e would occur i n cases i n which an a c c i d e n t i n v o l v e s one or more d r i v e r s who have chosen d i f f e r e n t p l a n s . Keeton and 0'Connell would overcome t h i s problem by having 53 a l l d r i v e r s c a r r y some compulsory l i a b i l i t y i n s u r a n c e , where as C a l a b r e s i suggests t h a t an u n i n s u r e d m o t o r i s t s p o o l 54 be s e t up and funded by charges on n o - f a u l t - i n s u r a n c e . -179-In t h i s w r i t e r ' s o p i n i o n such p r o p o s a l s are not f e a s i b l e from e i t h e r an a d m i n i s t r a t i v e or c o s t p o i n t of view. Consequently every d r i v e r must be i n s u r e d under the same system, and p r o v i d i n g the p u b l i c can be educated by means of commercial messages from i n s u r e r s and governmental b u l l e t i n s e t c . , t o c o n s i d e r a d d i t i o n a l a c c i d e n t b e n e f i t coverage, t h e r e i s every reason t o b e l i e v e t h a t a pure n o - f a u l t scheme, u t i l i z -i n g compulsory and v o l u n t a r y i n s u r a n c e i s v i a b l e and l e s s expensive than the pure t o r t or h y b r i d scheme now i n use. As f a r as s h i f t i n g some of the onus to ot h e r a c t i v i t i e s as proposed, by T h o r p e 5 ^ and C a l a b r e s i ^ , the concept i s c e r t a i n l y .laudatory s i n c e i t p l a c e s the onus on the r e a l c a u s a l f a c t o r s of a c c i d e n t s . H o p e f u l l y i t may p o s s i b l y d e t e r some-i n d i v i d u a l s from engaging i n such a c t i v i t i e s as w e l l , but the main impact i s designed t o s t r i k e a t c a r d e s i g n e r s and highway b u i l d e r s where i t i s thought t o be most e f f e c t i v e , eg. the f i n a n c i a l statements. The theory i s t h a t i f these f a c t o r s are assessed the c o s t s of a c c i d e n t s t h e i r p r o f i t s w i l l be r e -duced, but i f the c a r manufacturers and highway b u i l d e r s can reduce the number of a c c i d e n t s by improving automobile and highway d e s i g n s , r e s p e c t i v e l y , they can r e g a i n t h e i r l o s t income. However two l a r g e o b s t a c l e s stand i n the path of such a scheme. F i r s t l y a c c u r a t e data must be o b t a i n e d i n order t o assess the degree of r e s p o n s i b i l i t y of each c a u s a l f a c t o r -180-and t h i s w i l l not be easy g i v e n the p r e s e n t standards of a c c i d e n t i n v e s t i g a t i o n s , and the suddenness of auto a c c i d e n t . Thorpe p o i n t s out t h a t p o s s i b l y w i t h the u t i l i z a t i o n of computers and b e t t e r a n a l y s i s of a c c i d e n t s such a scheme 5 7 might become o p e r a t i v e . The second stumbling b l o c k i s the p o t e n t i a l f o r the c a u s a l f a c t o r s to a v o i d the i n c i d e n c e of such c o s t s , eg. d r i v e r buys i n s u r a n c e , manufacturer r a i s e s the p r i c e of h i s c a r s , government r a i s e s taxes, c o n s t r u c -t i o n f i r m r a i s e s b i d s , e t c . At the end o f the day, i t r e a l l y comes down t o which p a r t of the p o p u l a t i o n i s going to s h oulder the f i n a n c i a l burden, and t o hope t h a t an automobile manufacturer, highway c o n t r a c t o r , or a governmental department w i l l share the burden i s b e i n g o p t i m i s t i c , but p o s s i b l y worthy of a t r i a l . In r e s p e c t of the s h i f t of automobile a c c i d e n t c o s t s to o t h e r i n s u r a n c e programs, eg. workmen's compensation and m e d i c a l c a r e , such p r o v i s i o n s are p r a i s e w o r t h y s i n c e they e l i m i n a t e the waste and i n e f f i c i e n c y of the d u p l i c a t i o n of b e n e f i t s . However they e x t e r n a l i z e the c o s t of motoring t o a c e r t a i n e x t e n t , and t h i s r e s u l t i s somewhat i n e q u i t a b l e s i n c e those who enjoy the use of the highway sh o u l d pay the f u l l p r i c e . But i n p r a c t i c e any attempt to a l l o c a t e such c o s t s between the v a r i o u s s o c i a l i n s u r a n c e schemes would probably be expensive and d i f f i c u l t from an a d m i n i s t r a t i v e p o i n t of view. However i f c o s t s c o u l d be a l l o t t e d to t h e i r c a u s a l a c t i v i t i e s , eg. by making automobile coverage the " f i r s t l o s s " -181-i n s u r a n c e , the system would be more e q u i t a b l e , and j u s t as important, i t would c l e a r l y r e v e a l the r e a l c o s t of highway cr a s h e s , which i n t u r n may s t i m u l a t e the concerned p a r t i e s to i n s t i t u t e some s i g n i f i c a n t r e m e d i a l measures. T h e r e f o r e i t would appear t h a t i n p r a c t i c e the automobile d r i v e r and owner w i l l be r e s p o n s i b l e f o r the f i n a n c i a l l o a d r e l a t i n g to t r a f f i c a c c i d e n t s . However as mentioned t h e r e are ways of i n c r e a s i n g the e f f i c i e n c y of the i n s u r a n c e scheme so more d o l l a r s can be p a i d out to cover l o s s e s , but to expect such p r o p o s a l s ( n o - f a u l t ) t o lower i n s u r a n c e premiums i s a moot p o i n t because of the i n c r e a s e i n the number of c l a i m -a n t s . Without an a c t u a r i a l study no c o n c l u s i v e answer can be g i v e n on t h i s p o i n t . Government Involvement Some commentators have suggested t h a t a government operated scheme may r e s u l t i n a more e f f i c i e n t system. For example Terrence Ison i n d i c a t e d t h a t t h e r e are t h r e e p o s s i b l e reasons f o r governmental a d m i n i s t r a t i o n of an automobile i n -surance scheme. 1. economies of s c a l e , 2. e l i m i n a t i o n of agency commissions and i n s u r a n c e p r o f i t s , and 3. e l i m i n a t i o n of c o n t r i b u t i o n and indemnity between i n s u r e r s . ^ 8 -182-I f a pure n o - f a u l t and d i r e c t w r i t e r system were adopted the l a t t e r two economies, wi t h the e x c e p t i o n of i n s u r e r ' s p r o f i t s , would be e l i m i n a t e d i n any event, and i n r e s p e c t of p r o f i t s , s i n c e a d e d u c t i o n has been made i n 59 r e s p e c t of investment income, such gains are u n l i k e l y to be s i g n i f i c a n t . P e r t a i n i n g to the f i r s t p o i n t , i t i s e n t i r e l y p o s s i b l e t h a t some savings may be gained, by a governmental i n s u r a n c e scheme but i t i s d i f f i c u l t t o measure the e x t e n t of such s a v i n g s . The b e s t guide a v a i l a b l e t o t h i s w r i t e r i s the e x p e r i e n c e i n Saskatchewan i n r e s p e c t of the government operated scheme. One source c r e d i t e d t h a t approach w i t h such economies as, simultaneous a p p l i c a t i o n f o r d r i v e r ' s l i c e n c e , owner's r e g i s t r a t i o n , and automobile i n s u r a n c e , c e n t r a l i z e d c l a i m s o f f i c e s , ready access to i n f o r m a t i o n c o n c e r n i n g a l l t r a f f i c a c c i d e n t s , and a l a r g e r volume of b u s i n e s s permits the 6 0 government to accept n e a r l y a l l r i s k s . In a d d i t i o n the S.G.I.O. does not pay any c o r p o r a t e tax, has a l e s s e r need f o r r e i n s u r a n c e and enjoys an advantage i n s e l l i n g v o l u n t a r y coverage because people must purchase compulsory i n s u r a n c e 61 from the government. On the other hand c e r t a i n p o i n t s r e g a r d i n g the Saskat-chewan scheme sh o u l d be acknowledged. F i r s t l y although the 6 2 compulsory i n s u r a n c e expense r a t i o i s below 20 p e r c e n t , the same r a t i o i s approximately 40 p e r c e n t i n r e s p e c t of -183-v o l u n t a r y coverage w r i t t e n by the government, mainly because 6 3 of a 20 p e r c e n t commission p a i d t o governmental agents. Secondly v e r y few of the automobile c l a i m s i n Saskatchewan i n v o l v e lawyers. I t i s es t i m a t e d t h a t the s e r v i c e s of so-l i c i t o r s were o n l y employed i n 600 of 7,104 cl a i m s which concerned p e r s o n a l i n j u r y ( a c c i d e n t b e n e f i t or l i a b i l i t y 64 coverage). Yet one source i n d i c a t e d t h a t damage awards f o r p e r s o n a l i n j u r y were r e l a t i v e l y s i m i l a r t o those i n O n t a r i o , 6" 5 but s l i g h t l y lower than the l e v e l i n B r i t i s h Columbia. One p o s s i b l e and s i g n i f i c a n t reason f o r the low lawyer i n -volvement, even w i t h r e s p e c t to l i a b i l i t y c l a i m s , i s the f a c t t h a t i n many cases both p a r t i e s w i l l be i n s u r e d by S.G.I.O. Hence the s e t t l e m e n t process i s much more simple, and does not r e q u i r e the employment of lawyers. T h i r d l y t h e r e i s some q u e s t i o n about hidden c o s t s , eg. a l l o c a t i o n of overhead ex-6 6 penses t o d i f f e r e n t governmental a c t i v i t i e s . These p o i n t s are mentioned so t h a t the reader can g a i n a b e t t e r understanding of the c o s t s of the Saskatchewan scheme. The o t h e r comparison which may be u s e f u l i s the analogy of workmen's compensation. In 1970 the a d m i n i s t r a t i o n expense of the B r i t i s h Columbia Workmen's Compensation Board accounted f o r about 11.5 p e r c e n t of t o t a l payouts, eg. expenses and l o s s 6 7 compensation. However t h i s w r i t e r does not b e l i e v e the forementioned f i g u r e i s comparable t o governmental a d m i n i s t r a t e d automobile i n s u r a n c e schemes because of such f a c t o r s as: —1-84-1. ease and e f f i c i e n c y of c o l l e c t i o n of funds from b u s i n e s s e s , eg. r e l a t i v e l y s m a l l number and s t a t i c l o c a t i o n , 2. company a s s i s t a n c e i n a d m i n i s t e r i n g work c l a i m s , 3. f i x e d nature of work i n j u r y , 4. homogeneity of the type of i n j u r y and income of v i c t i m s , eg. e a s i e r t o schedule b e n e f i t s , 6 ^ 5. no marketing c o s t s , and 6. no d i f f i c u l t y i n r e s p e c t of i n s u r i n g i n d i v i d u a l s are f u l l y covered, eg. one compulsory comprehensive scheme. For these reasons and i n l i g h t of the Saskatchewan scheme ex p e r i e n c e , i t would appear t o be i m p o s s i b l e t o operate an automobile compensation scheme w i t h the same expense r a t i o as t h a t which p e r t a i n s t o workmen's compensation i n B r i t i s h Columbia. Qui t e p r o b a b l y the forementioned economies of s c a l e would permit a governmental scheme t o f u n c t i o n at a lower expense r a t i o as compared w i t h t h a t of a p r i v a t e l y operated p l a n , assuming a d e c l i n e i n employee a t t i t u d e and morale, and governmental "red tape" are avoided. However such c o s t savings which are r e a l l y immeasurable, must be weighed a g a i n s t p o s s i b l e r i g i d i t i e s and l a c k of i n n o v a t i o n s , r e s u l t i n g diseconomies i n 69 oth e r l i n e s o f i n s u r a n c e , and l e s s i n d i v i d u a l s e r v i c e . I t would seem to t h i s w r i t e r , t h a t s i n c e o v e r c h a r g i n g i s not a 70 major problem m the B r i t i s h Columbia Insurance I n d u s t r y , and the B r i t i s h Columbia Automobile Insurance Board has been 71 empowered to r e g u l a t e r a t e s . Governmental a d m i n i s t r a t i o n -185-i s u n l i k e l y to r e s u l t i n s i g n i f i c a n t l y l e s s expensive, or more a t t r a c t i v e i n s u r a n c e , eg. s e r v i c e and types of coverage, i f p r i v a t e e n t e r p r i s e accepts a pure n o - f a u l t , d i r e c t w r i t e r scheme. As noted e a r l i e r an unproclaimed s e c t i o n of the Insurance Act would permit the government to s e l l i n s u r a n c e i f the c o s t o f a p r i v a t e l y operated scheme i s not commensurate w i t h the 72 r i s k s . T h i s w r i t e r b e l i e v e s t h i s p r o v i s i o n r e i n f o r c e s the l e v e r a g e of the Auto Insurance Board, and a l s o serves as a warning to the I n d u s t r y t h a t they must adhere t o reasonable p r a c t i c e s and to s e a r c h f o r economics, or they w i l l l o s e t h e i r b u s i n e s s , and be r e p l a c e d by the government. More g e n e r a l l y the q u e s t i o n of whether the automobile i n s u r a n c e scheme remains i n the hands of p r i v a t e i n s u r e r s r e s t s w i t h the p a r t y i n power, and undoubtedly i f the New Democratic P a r t y were t o g a i n a m a j o r i t y , motor v e h i c l e i n -surance would be s o l d e x c l u s i v e l y , a t l e a s t the compulsory p a r t of an i n s u r a n c e package, by the government. In Saskatchewan the government allows p r i v a t e i n s u r e r s to compete i n r e s p e c t 73 74 of supplementary coverage, whereas i n Manitoba and i n the 75 N.D.P. b r i e f to the Wootton Commission , a s t a t e monopoly, i s i n e f f e c t , and was proposed, r e s p e c t i v e l y . However, such a step i s probably more of a p o l i t i c a l measure, than a proven means of p r o v i d i n g a panacea f o r the c o s t " i l l s " of the Insurance I n d u s t r y , u n l e s s the i n s u r e r s cannot o r w i l l not reduce or e l i m i n a t e the r o l e of agents which i s a s i g n i f i c a n t -186-p a r t of the expense f a c t o r . C o n c l u s i o n As s t a t e d at the o u t s e t of the chapter a l l the w r i t e r c o u l d reasonably do was t o o u t l i n e the v i e w p o i n t s p e r t a i n i n g to these c o n t r o v e r s i a l t o p i c s , and attempt to i n d i c a t e the v a l i d i t y o f the d i f f e r e n t arguments. While o n l y l i m i t e d evidence i s a v a i l a b l e the w r i t e r i n the next and l a s t chapter w i l l analyze the i n f o r m a t i o n compiled i n t h i s and the p r e c e d i n g s i x c h a p t e r s . H o p e f u l l y t h i s approach has enabled the reader t o g a i n a r e l a t i v e l y o b j e c t i v e understanding of the i s s u e s , and hence he w i l l be i n a p o s i t i o n to comprehend and c r i t i c i z e the w r i t e r ' s c o n c l u s i o n s . CHAPTER V I I I POLICY IMPLICATIONS I n t r o d u c t i o n In t h i s chapter the w r i t e r w i l l examine the i n f o r m a t i o n which has been compiled i n the p r e v i o u s c h a p t e r s . The o b j e c t i v e of the w r i t e r w i l l be to a s c e r t a i n what i m p l i c a t i o n s t h i s data has i n r e s p e c t o f f u t u r e p o l i c i e s i n r e l a t i o n t o t r a f f i c s a f e t y and the compensation of t r a f f i c v i c t i m s . T r a f f i c S a f e t y T h i s t o p i c was d i s c u s s e d i n Chapter VI and from t h a t source t h e r e would appear t o be a number of t e n t a t i v e c o n c l u s i o n s which may be drawn. As i n d i c a t e d i n t h a t chapter the r e s e a r c h and s t a t i s t i c s may not be as c o n c l u s i v e as one would d e s i r e , but they do shed some l i g h t on the g e n e r a l p i c t u r e and i t would be unwise to i g n o r e the i m p l i c a t i o n s . The f i r s t p o i n t i s t h a t improvement of v e h i c l e and roadway des i g n and emergency care i s e s s e n t i a l i f highway c a s u a l t i e s are to be reduced i n numbers and s e v e r i t y , because i t i s , and w i l l be v i r t u a l l y i m p o s s i b l e to ensure t h a t i n d i v i d u a l s w i l l conform to an e r r o r - f r e e d r i v i n g standard. T h i s s i t u a t i o n w i l l e x i s t because such a c c i d e n t causing f a c t o r s as d r i n k i n g , f a t i g u e , -187--188-p h y s i c a l d i s t r a c t i o n s , and l a c k of mental c o n c e n t r a t i o n which l e s s e n an i n d i v i d u a l ' s d r i v i n g performance, cannot be e l i m i n a t e d , but merely reduced. Consequently e x t e n s i v e r e s e a r c h i n and implementation of s a f e t y d e v i c e s i n v e h i c l e s and b e t t e r roadway e n g i n e e r i n g , and upgraded emergency care must be undertaken because t r a f f i c a c c i d e n t s are i n e v i t a b l e and i t has been shown t h a t i t i s more e f f e c t i v e to a l t e r the d r i v i n g environment as compared w i t h changing d r i v e r behaviour, supra p. 12 8. Secondly, the f o r e g o i n g should not be i n t e r p r e t e d as meaning t h a t bad d r i v i n g behaviour i s to be i g n o r e d . From d i s -c u s s i o n s w i t h v a r i o u s i n d i v i d u a l s who are i n t e r e s t e d i n t r a f f i c s a f e t y , the most s t r i k i n g p o i n t i s the apparent l a c k of p u b l i c a n x i e t y over the l a r g e t o l l of highway c a s u a l t i e s . What . i s most important i s to convince the p u b l i c t h a t t r a f f i c s a f e t y and t r a f f i c v i o l a t i o n s are s e r i o u s m atters. Somehow d r i v e r s must be educated to apply a l l of t h e i r p h y s i c a l and mental c a p a c i t y to the task of d r i v i n g when they are behind the s t e e r i n g wheel, and s i m u l t a n e o u s l y they must accept the f a c t t h a t e r r a t i c d r i v i n g behaviour or v i o l a t i o n of t r a f f i c laws i s a p o t e n t i a l l y f a t a l e x e r c i s e which deserves condemnation r a t h e r than condon-a t i o n from the d r i v e r ' s a s s o c i a t e s and r e l a t i v e s . The r a t h e r l i m i t e d r e s e a r c h which has been r e p o r t e d on t h i s t o p i c would i n d i c a t e t h a t the use of a p r o b a t i o n or a suspension -189-of a d r i v e r ' s l i c e n c e i s the most e f f e c t i v e means of encouraging i n d i v i d u a l s to d r i v e i n a more l a w f u l and s a f e r manner. Per-t a i n i n g to t h i s matter of d r i v i n g behaviour a demerit p o i n t system i n c l u d i n g a c c i d e n t involvement and t r a f f i c v i o l a t i o n s would seem to be the most a p p r o p r i a t e way to determine which s a n c t i o n s w i l l be employed and a t what j u n c t u r e because repeated occurrences of e i t h e r event i n d i c a t e s an i n a b i l i t y or u n w i l l i n g -ness to d r i v e i n a s a f e manner. A l s o the demerit p o i n t scheme dramatizes the i n d i v i d u a l ' s d r i v i n g behaviour and hence w i l l h o p e f u l l y d i s c o u r a g e any f u r t h e r t r a n g r e s s i o n s of the law or unsafe conduct, eg. demerit p o i n t s c o r e i s p r e s e n t i n the mind of the d r i v e r and a l s o he i s aware of the t o t a l at which p o i n t he w i l l l o s e h i s l i c e n c e . In o r d e r to make t h i s system more e f f e c t i v e i t i s suggested t h a t impoundment of the v e h i c l e take p l a c e i f the d r i v e r of t h a t c a r has had h i s l i c e n c e sus-pended or i f t h e r e i s more than one d r i v e r then a d i f f e r e n t c o l o u r e d s e t of p l a t e s should be used so t h a t the p o l i c e can r e c o g n i z e such a v e h i c l e and s u b j e c t i t to spot checks. Such d r a s t i c measures are necessary i n o r d e r to reduce the number of d r i v e r s who operate t h e i r v e h i c l e s i n s p i t e of the f a c t t h a t t h e i r l i c e n c e s have been suspended. At the same time i t appears t h a t i t i s necessary t o r e s t r i c t the number of l i c e n c e s which should be granted i n the f i r s t p l a c e . Many d r i v e r s are e i t h e r p h y s i c a l l y or m e n t a l l y i n c a p a b l e of d r i v i n g w i t h the r e q u i r e d minimum l e v e l of s k i l l s . -190-T h e r e f o r e i t i s suggested t h a t more s t r i c t d r i v i n g t e s t s and m e d i c a l examinations should be used to keep inadequate d r i v e r s o f f the road b e f o r e they become i n v o l v e d i n t h e i r f i r s t a c c i d e n t . In a d d i t i o n s i m i l a r t e s t s and examinations should be r e q u i r e d at r e g u l a r i n t e r v a l s . The proposed i n t e r v a l would be every f i v e y ears f o r i n d i v i d u a l s under 6 0 years and every t h r e e years f o r those over 60 y e a r s . These t e s t s would be f r e e , w i t h the funds f o r t h i s program being d e r i v e d from an added charge on the d r i v e r ' s l i c e n c e f e e . The f i r s t p r e r e q u i s i t e f o r such a p l a n i s g e n e r a l acceptance by the p u b l i c of the concept t h a t d r i v i n g i s not a r i g h t , but a p r i v i l e g e which i s o n l y given to those -in d i v i d u a l s who demonstrate and c o n t i n u e to e x h i b i t a c e r t a i n p r o f i c i e n c y i n d r i v i n g s k i l l s and who obey t r a f f i c laws, and who are not i n v o l v e d i n a c c i d e n t s . Another important c o n d i t i o n which must be p r e s e n t i n order to make such an approach f e a s i b l e i s the e x i s t e n c e of a l t e r n a t i v e forms o f t r a n s p o r t a t i o n , and a t the p r e s e n t time t h i s i s a r e a l stumbling b l o c k . The f i n a l p o i n t which must be mentioned i n r e s p e c t o f t r a f f i c s a f e t y i s the (suggested) d e t e r r e n t e f f e c t of compulsory i n s u r a n c e and the t o r t system. The overwhelming m a j o r i t y of the e x p e r t s t h i n k t h a t a c c i d e n t s are independent of the system of compensation and the e x i s t e n c e of compulsory automobile i n -surance. The w r i t e r s f e e l , and t h i s w r i t e r agrees, concern f o r -191-one's s e l f p r e s e r v a t i o n and/or the f e a r of a l i c e n c e suspension, supra p. 146-147 / are l a r g e r d e t e r r e n t s w i t h r e s p e c t to bad d r i v i n g behaviour as compared w i t h involvement i n a t o r t t r i a l as a defendant. T h i s c o n c l u s i o n i s based on b e h a v i o u r a l assumptions, which have not been t e s t e d s t a t i s t i c a l l y , but have a s t r o n g i n t u i t i v e appeal. The B r i t i s h Columbia e x p e r i e n c e , i n the years 19 70 and 19 71, w i t h the compulsory h y b r i d t o r t - a c c i d e n t b e n e f i t scheme does not p r o v i d e any c o n c l u s i v e r e s u l t s . The d a t a i n d i c a t e d t h a t d u r i n g the p e r i o d the new scheme has been o p e r a t i n g the t o t a l c a s u a l t i e s have remained r e l a t i v e l y c o n s t a n t , supra p.153. Y e t t h e r e a s o n s f o r t h i s p i c t u r e cannot be d e c i p h e r e d because of the numerous f a c t o r s i n v o l v e d . For i n s t a n c e the forementioned data shows t r a f f i c d e n s i t y r i s i n g , which one would expect to be a p o s i t i v e f a c t o r i n r e l a t i o n t o the number of a c c i d e n t s , at the. same time i t i s probable t h a t more s t r i n g e n t law enforcement, eg. i n c r e a s e i n use of radar t r a p s and new laws w i t h r e s p e c t t o d r i n k i n g d r i v e r s , supra p.138, have had a n e g a t i v e e f f e c t on a c c i d e n t e x p e r i e n c e . A l s o the reader must remember t h a t the change i n the r e p o r t i n g requirements has probably had a n e g a t i v e e f f e c t on the frequency of a c c i d e n t s and c a s u a l t i e s - , supra p. 153. Hence i t i s v i r t u a l l y i m p o s s i b l e to a c c u r a t e l y assess the impact of the new scheme on t r a f f i c s a f e t y , and t h i s problem w i l l remain unanswered u n t i l r e s e a r c h can p r e c i s e l y measure the e f f e c t of the above and other p e r t i n e n t f a c t o r s . -192-L i k e w i s e the whole area of d e t e r r e n t s i n r e s p e c t of bad d r i v i n g behaviour w i l l remain u n s e t t l e d u n t i l s t u d i e s are performed i n t h i s f i e l d . A l s o as p o i n t e d out by Thorpe i t i s p o s s i b l e t h a t i f ot h e r elements i n the t r a f f i c a c c i d e n t mix were charged w i t h t h e i r share of the r e s p o n s i b i l i t y f o r t r a f f i c a c c i d e n t s then i n d i v i d u a l s may be d i s c o u r a g e d from p a r t i c i p a t i n g i n the ha-zardous a c t i v i t y o f d r i v i n g , eg. by c h a r g i n g automobile manu-f a c t u r e r s f o r f a u l t y v e h i c l e designs which would probably cause them to r a i s e t h e i r p r i c e s , or such a c t i o n may encourage such f a c t o r s as automobile manufacturers or roadway engineers to improve the designs of the v e h i c l e and the s t r e e t s , r e s p e c t i v e l y , and hence t o reduce a c c i d e n t s . There i s no c o n c r e t e evidence t h a t such a p l a n would work, but g i v e n the p r e s e n t concern and p u b l i c i t y about s a f e t y i n r e s p e c t of automobiles such steps are worthy of a t r i a l . Under a pure n o - f a u l t scheme any money c o l l e c t e d from such s o u r c e s , a f t e r an i n v e s t i g a t i o n and h e a r i n g which would be d i s t i n c t from the compensation of a t r a f f i c v i c t i m , would be used f o r t r a f f i c s a f e t y r e s e a r c h . Costs of A d m i n i s t r a t i n g an Automobile A c c i d e n t Compensation Scheme I d e a l l y an automobile compensation scheme would pay out every d o l l a r i t c o l l e c t e d i n the form of l o s s compensation. How-ever i n p r a c t i c e t h i s i s not p o s s i b l e because the m e r i t s of each -193-c l a i m must be a s c e r t a i n e d and t h e r e are expenses a s s o c i a t e d w i t h the c o l l e c t i o n and disbursement of premiums and b e n e f i t s , r e s p e c t i v e l y . A l s o i f a scheme i s t o be p r i v a t e l y operated some allowance must a l s o be made f o r a p r o f i t f a c t o r which i s e s s e n t i a l f o r the s u r v i v a l of p r i v a t e e n t e r p r i s e . L a s t l y some c o n s i d e r a t i o n s hould be g i v e n to the f a c t t h a t an i n e f f i c i e n t system which y i e l d s lower b e n e f i t s per premium d o l l a r may not . be a shortcoming i f the system i s viewed i n i t s wider p e r s -p e c t i v e because the c o s t i n e f f i c i e n c i e s permit a number of i n d i v i d u a l s t o be employed when they may otherwise be on wel-f a r e . T h e r e f o r e one must attempt to balance the t r a d e - o f f between the c o s t of i n s u r a n c e to owners and d r i v e r s of automo-b i l e s w i t h the c o s t of unemployed workers to s o c i e t y . As i n d i c a t e d i n chapter V I I , supra p.169,the a c t u a l l o s s payout of t h i r d p a r t y l i a b i l i t y and a c c i d e n t b e n e f i t p o l i c i e s i n r e l a t i o n t o the premium d o l l a r i n 19 72 are e s t i m a t e d a t 59.8* and 69.5*, r e s p e c t i v e l y . A l s o as can be r e a d i l y seen from the same schedule the o n l y change from the pre-Wootton Commission l o s s payout r a t i o i n 19 67 has been made i n r e s p e c t of the p r o f i t f a c t o r . As d e s c r i b e d i n Chapter V t h i s a d j u s t -ment r e s u l t e d from a r u l i n g of the Automobile Insurance Board t h a t the contingency and u n d e r w r i t i n g p r o f i t f a c t o r was reduced from 2.5* to 0.5* per premium d o l l a r . The Automobile Insurance Board took t h i s step i n o r d er to g i v e r e c o g n i t i o n t o the f a c t t h a t the l a r g e s t p o r t i o n of i n s u r a n c e company p r o f i t s are d e r i v e d from investment income, and not the u n d e r w i t i n g b u s i n e s s . -194-What i s p e c u l i a r i s the f a c t t h a t a 20 r e d u c t i o n i n the p r o f i t f a c t o r was a p p l i e d t o both the l i a b i l i t y and a c c i d e n t b e n e f i t p o l i c i e s . Investment income i s d e r i v e d from the r e t u r n on unearned premiums and on delayed payment of c l a i m s . T h i s l a t t e r f a c t o r i s s u b s t a n t i a l l y d i f f e r e n t f o r the above p o l i c i e s . The delay i n payment of a c c i d e n t b e n e f i t s i s 30-60 days at the most, supra p.116 , where as the d e l a y s f o r l i a b i l i t y c l a ims range from 5 to 21 months, supra p.115 . T h e r e f o r e i t would be r e a s o n a b l e to expect a g r e a t e r r e d u c t i o n i n r e s p e c t of l i a b i l i t y p o l i c i e s because the p o t e n t i a l f o r e a r n i n g investment i s much g r e a t e r . Money i s a v a i l a b l e f o r longer p e r i o d s , and hence a l a r g e r r e d u c t i o n should be made i n r e s p e c t of l i a b i l i t y p o l i c i e s i f the h y b r i d compensation scheme i s r e t a i n e d . Now l e t us review the a d v i s i b i l i t y of f u r t h e r decreases i n i n s u r a n c e c o s t s i n order to o b t a i n a l a r g e r l o s s payout per premium d o l l a r . B a s i c a l l y the v a r i a b l e s t h a t are a d j u s t a b l e are the e l i m i n a t i o n of the middlemen, eg. i n s u r a n c e agents and lawyers, economies of s c a l e i n the c o l l e c t i o n of premiums and d i s t r i b u t i o n of c l a i m s , and e l i m i n a t i o n of the p r o f i t f a c t o r by means of governmental o p e r a t i o n . No-i n F a u l t When the a c c i d e n t b e n e f i t scheme was i n t r o d u c e d i t r e s u l t e d an e s t i m a t e d i n c r e a s e i n l o s s payouts of 10 0 per premium d o l l a r -195-as compared w i t h t h a t of l i a b i l i t y p o l i c y payouts. The reason f o r t h i s i n c r e a s e was the v i r t u a l e l i m i n a t i o n of lawyers, eg. both the i n s u r e d ' s and the c l a i m a n t ' s lawyers, and a r e d u c t i o n i n a d j u s t i n g expense because of the more s i m p l i e d and non-adversary approach, eg. e l i g i b i l i t y f o r b e n e f i t s was, and i s the o n l y q u e s t i o n s i n c e b e n e f i t s are c l e a r l y s p e l l e d out. Hence i t i s m a n i f e s t t h a t s u b s t a n t i a l savings are p o s s i b l e i f lawyers are not u t i l i z e d i n the compensation p r o c e s s , eg. a pure n o - f a u l t scheme. However i t i s l i k e l y t h a t i f such a scheme were adopted i t would be necessary to f o r b i d d i s p u t e s between i n s u r e d s and t h e i r i n s u r e r s from r e a c h i n g the j u d i c i a l c o u r t system because such a c t i o n s would s e r i o u s l y reduce any p o t e n t i a l c o s t savings i n a n o - f a u l t scheme, eg. necessary to l i m i t the number of cases which w i l l i n v o l v e the expense o f lawyers. In p l a c e of a t r i a l , the w r i t e r suggests t h a t an A d m i n i s t r a t i v e Review Board should be s e t up to handle any complaints between i n s u r e d s and i n s u r e r s . T h i s t r i b u n a l would be more i n f o r m a l than a j u d i c i a l Court and would not n e c e s s a r i l y r e q u i r e the use of lawyers or case p r e c e d e n t s . I t would be s i m i l a r to the Board of Review which operates i n c o n n e c t i o n w i t h the Workmen's Compensation Act and has e x c l u s i v e j u r i s d i c t i o n t o hear and determine a l l d i s p u t e s p e r t a i n i n g to Workmen's Compensation. The d e c i s i o n of the Board 2 of Review i s f i n a l and not s u b j e c t to review i n any Court. O b v i o u s l y the o p e r a t i o n of such an a d m i n i s t r a t i v e t r i b u n a l would e n t a i l some expense, but i t would be minimal i n comparison w i t h the p r e s e n t Court system and the money p r e s e n t l y being -196-absorbed by lawyers, eg. i n more complicated cases lawyers would s t i l l become i n v o l v e d , but h o p e f u l l y the m a j o r i t y o f h e a r i n g s would not r e q u i r e any lawyers. As f a r as the f e a s i b i l i t y of such a scheme i s concerned i t would appear t h a t the Insurance Ind u s t r y i s prepared t o accept a n o - f a u l t scheme. In t h e i r r e c e n t Submission to the Quebec Royal Commission on Automobile Insurance, the Canadian U n d e r w r i t e r s A s s o c i a t i o n proposed i n c r e a s e d a c c i d e n t i n s u r a n c e b e n e f i t s (as compared w i t h o t h e r Canadian p r o v i n c e s ) and the adoption of a compulsory n o - f a u l t scheme i n r e s p e c t of p r o p e r t y 3 damage, and the w r i t e r has been informed t h a t t h i s i s i n d i c a t i v e 4 of the a t t i t u d e of the I n d u s t r y . The w r i t e r t h i n k s t h a t i f the Ind u s t r y w i l l promote the above p l a n then they would probably be p repared to accept a pure n o - f a u l t system. The l e g a l p r o f e s s i o n appears t o be d i v i d e d on t h i s q u e s t i o n and hence i f such a scheme were proposed the p r o f e s s i o n would probably not take a u n i t e d stand e i t h e r f o r or a g a i n s t the a b o l i t i o n of t o r t a c t i o n i n r e s p e c t of automobile a c c i d e n t s . Hence a n o - f a u l t scheme i f i n t r o d u c e d i n the L e g i s l a t u r e i n the next few years would probably be accepted by the p o l i t i c i a n s , the p u b l i c , the I n d u s t r y , and even the law p r o f e s s i o n . In r e s p e c t of the economic e f f e c t s on the l e g a l p r o f e s s i o n i f a n o - f a u l t scheme was adopted, t h e r e i s no i n f o r m a t i o n which i s r e a d i l y a v a i l a b l e t o determine the p r e c i s e e f f e c t s o f such -197-a s t e p , and i s an area f o r f u r t h e r study which l i e s beyond the scope of t h i s t h e s i s . However i n t h i s w r i t e r ' s judgment i n s u r a n c e lawyers c o u l d f i n d work i n r e s p e c t of o t h e r l i n e s o f i n s u r a n c e or o t h e r areas of the law and hence the economic impact would not be t h a t severe. Consequently when a l l f a c t o r s are c o n s i d e r e d the w r i t e r would propose t h a t because of the c o s t savings and l a c k of adverse s i d e e f f e c t s t h a t a pure n o - f a u l t scheme should be adopted i n B r i t i s h Columbia. D i r e c t W r i t e r s The second middleman of i n t e r e s t i n our study i s the i n s u r a n c e agent. C u r r e n t l y the agent accounts f o r 12.5* of every premium d o l l a r , and i t would appear t h a t i f a d i r e c t w r i t e r scheme were i n t r o d u c e d some savings c o u l d be o b t a i n e d . However i t i s d i f f i c u l t t o p r e d i c t j u s t how l a r g e those savings may be because some of the agent's f u n c t i o n s , i e . marketing, a d v i s i n g i n s u r e d s and s e r v i c i n g of automobile p o l i c i e s , would have to be performed by the i n s u r a n c e companies themselves. The f a c t s p r o v i d e d by the I n d u s t r y i n d i c a t e d t h a t i n the p o l i c y year 19 70 (January 1, 1970 - December 31, 1971) over $100M.of net premiums 5 were earned i n the automobile " l i n e " i n B r i t i s h Columbia. Hence a p p l y i n g the agents' allowance of 12.5 p e r c e n t i t i s e v i d e n t t h a t agents absorb more than $12.5 m i l l i o n of automobile i n s u r a n c e premiums. -198-In the w r i t e r ' s o p i n i o n a r e d u c t i o n of 80 per premium d o l l a r would not be unreasonable f o r a number of reasons. F i r s t l y many of the f i x e d c o s t s of the agency system, i e . r e n t payments on f i x t u r e s and b u i l d i n g s , p r o p e r t y t a x e s , heat and l i g h t charges, and g e n e r a l management, s a l a r i e s , c o u l d be e l i m i n a t e d because the number of o f f i c e s and p e r s o n n e l would be reduced. Secondly s i n c e motor v e h i c l e p o l i c i e s are f a i r l y simple and standard the need f o r e x p e r t advice and i n f o r m a t i o n i s l i m i t e d . T h i r d l y a compulsory scheme, as i s p r e s e n t l y o p e r a t i n g , reduces the need f o r marketing of these p o l i c i e s s i n c e every d r i v e r and owner i s o b l i g a t e d t o i n s u r e h i m s e l f . A l s o under a compulsory-supplementary i n s u r a n c e package scheme the marketing c o s t s i n r e s p e c t of the supplementary i n s u r a n c e are decreased because c o n t a c t between the i n s u r e d and the i n s u r e r i s n e c e s s i t a t e d by the compulsory in s u r a n c e requirements. Hence i t i s l e s s expensive t o s e l l a p o l i c y t o a c a p t i v e customer as opposed t o the p u b l i c at l a r g e . L a s t l y c e r t a i n economies of s c a l e may be expected as i n s u r a n c e companies perform some o f the agent's f u n c t i o n s by means o f more i n t e n s i v e use of o f f i c e machinery. In a d d i t i o n the f a c t t h a t the i n s u r e d w i l l be encouraged to d e a l w i t h the company over the counter or by m a i l , as opposed to an agent who goes t o the customer's b u s i n e s s or r e s i d e n c e to make a s a l e w i l l a l s o decrease c o s t s . As i n d i c a t e d i n Chapter V I I t h e r e may be some problems a s s o c i a t e d w i t h a d i r e c t w r i t i n g scheme. F i r s t l y the acceptance of h i g h r i s k s by i n s u r e r s may be a problem. The proper use of the F a c i l i t y and the moral s u a s i o n of the Automobile Insurance Board c o u l d p a r t i a l l y a m e l i o r a t e the p o t e n t i a l t r o u b l e . Yet at the p r e s e n t time t h e r e are l i m i t a t i o n s on the percentage surcharges which can be l e v i e d on automobile p o l i c i e s and t h i s p r a c t i c e has some u n d e s i r a b l e r e p e r c u s s i o n s . S i n c e bad d r i v e r s are not s h o u l d e r i n g t h e i r f u l l share t h e r e i s some s u b s i d i z a t i o n of the bad d r i v e r by the good d r i v e r . T h i s s i -t u a t i o n i s not o n l y i n e q u i t a b l e and d i s q u i e t i n g t o the good d r i v e r , but d i r e c t w r i t e r s are r e l u c t a n t t o accept these r i s k s because they are u n p r o f i t a b l e . Two s o l u t i o n s t o t h i s quandry are r e a d i l y a v a i l a b l e . E i t h e r remove the surcharge l i m i t s and charge each d r i v e r the a p p r o p r i a t e market r a t e or r e t a i n the surcharge l i m i t s , eg. under the proposed demerit p o i n t scheme, and bar those d r i v e r s who exceed the l i m i t s from our roadways. The w r i t e r p r e f e r s the l a t t e r approach s i n c e i t i s e s s e n t i a l to keep such d r i v e r s o f f the road i f t r a f f i c s a f e t y i s t o be advanced. The onl y f o r e s e e a b l e problem w i t h such an approach i s enforcement, but as mentioned e a r l i e r t h e r e are ways of t i g h t e n i n g the laws, eg. impoundment of v e h i c l e s i f d r i v e r ' s l i c e n c e i s suspended. The second problem i n r e s p e c t of a d i r e c t w r i t e r system concerns i n d i v i d u a l s who l i v e i n s p a r s e l y p o p ulated r e g i o n s of the p r o v i n c e . By j u d i c i o u s l o c a t i o n of i n s u r a n c e o f f i c e s and by use of the telephone and m a i l t h i s shortcoming can be l a r g e l y overcome. With the s h i f t of the p o p u l a t i o n t o urban c e n t r e s t h i s drawback w i l l a l s o be decreased i n magnitude. Those i n d i --200-v i d u a l s who continue to r e s i d e i n r u r a l areas w i l l have t o accept l e s s s e r v i c e . Any scheme should be designed to cope w i t h the needs o f the m a j o r i t y of the i n s u r e d s , p r o v i d i n g the m i n o r i t y are not completely n e g l e c t e d . L a s t l y a d i r e c t w r i t e r scheme must guard a g a i n s t the p o s s i b i l i t y t h a t economic savings w i l l be l o s t through a d v e r t i s -i n g . With the removal of p e r s o n a l s e l l i n g , which was p r o v i d e d by the agents, some form of marketing w i l l s t i l l be r e q u i r e d and a d v e r t i s i n g i s the l o g i c a l a l t e r n a t i v e . The w r i t e r f e e l s t h a t i f the Board i s v i g i l a n t and r e g u l a t e s r a t e s i f necessary, such a p o s s i b i l i t y can be a v e r t e d . Tn r e s n e c t of the* a c c e p t a n c e of a d i r e c t wr.itina scheme by the I n d u s t r y i n B r i t i s h Golumbia, i t appears d o u b t f u l t h a t such a step w i l l be undertaken without some encouragement. T h i s s i t u a t i o n e x i s t s because of the t h r e e l a r g e r a t i n g bureaux which g r e a t l y i n f l u e n c e I n d u s t r y p o l i c i e s , -the powerful agents a s s o c i a t i o n and t h e i r s o l i d b a r g a i n i n g p o s i t i o n , and the s c a r c i t y of d i r e c t w r i t e r s o p e r a t i n g i n B r i t i s h Columbia. The t h r e e l a r g e r a t i n g bureaux, I.B.C., C.U.A., and I . I . C , and t h e i r memberships a l l use the agency system. In t h i s w r i t e r ' s o p i n i o n these a s s o c i a t i o n s are t i g h t l y - k n i t groups which would not permit any of t h e i r members to become d i r e c t w r i t e r s , u n l e s s t h i s approach become the p o l i c y of the bureau i t s e l f . T h e r e f o r e i n order to make a d i r e c t w r i t i n g scheme a -201-r e a l i t y , some means must be found t o persuade at l e a s t one of the t h r e e bureaux to adopt such a system. The second p r a c t i c a l b a r r i e r t o a d i r e c t w r i t i n g approach i s the Agents A s s o c i a t i o n o f B r i t i s h Columbia. T h i s group i s i n a very s t r o n g b a r g a i n i n g p o s i t i o n because they are u n i t e d and secondly they p r o v i d e p r o f i t a b l e b u s i n e s s f o r the Insurance I n d u s t r y i n r e s p e c t of other " l i n e s " o f i n s u r a n c e . Consequently even i f the I n d u s t r y d e s i r e d a change to a d i r e c t w r i t e r format i t would meet c o n s i d e r a b l e o p p o s i t i o n from the agents group. The t h i r d problem i s the p a u c i t y of d i r e c t w r i t e r s i n B r i t i s h Columbia at the p r e s e n t time: L i b e r t y Mutual Insurance Co., B.C. M o t o r i s t s Insurance, Wesco Insurance Co., and the r e c e n t l y i n c o r p o r a t e d Vanco Insurance Co. U n t i l the companies without agents became a t h r e a t to the b u s i n e s s of the members of the t h r e e bureaux no v o l u n t a r y a c t i o n w i l l be taken by these l a t t e r companies. Hence some attempts should be made t o encourage the development of new companies o p e r a t i n g on a d i r e c t w r i t e r b a s i s . One way t o encourage the adoption of d i r e c t w r i t i n g by e x i s t i n g companies i s f o r the Board to lower r a t e s to the p o i n t t h a t o n l y d i r e c t w r i t e r s can s u c c e s s f u l l y operate at a p r o f i t . T h i s p o l i c y of r e g u l a t i n g r a t e s a l r e a d y f i t s w i t h i n the purview of the Board's a c t i v i t i e s . -202-A l s o the Board should o n l y p ermit new automobile i n s u r a n c e companies t o be i n c o r p o r a t e d or to operate branch o f f i c e s i n B r i t i s h Columbia i f they are prepared to operate a d i r e c t w r i t i n g system. Undoubtedly such measures would cause some companies to abandon the automobile i n s u r a n c e b u s i n e s s . Yet a t the same time i t may f o r c e the r a t i n g bureaux, to i n d i v i d u a l l y or c o l l e c t i v e l y , t o take a stand a g a i n s t the agents and adopt a no-agent system. T h i s s c e n a r i o i s a r e a l p o s s i b i l i t y i f the i n s u r a n c e companies t h i n k they c o u l d s u r v i v e w i t h o u t agents i n other " l i n e s " o f i n s u r a n c e or i f they can convince the agents group t h a t i t i s a p o s s i b i l i t y . In e i t h e r case i t would weaken the b a r g a i n i n g p o s i t i o n of the agents to a c o n s i d e r a b l e degree and make the companies more r e s p o n s i v e t o consumer wishes, the d i r e c t i v e s of the Board, and t h e i r own i n t e r e s t s . One r e s u l t o f such a p r o p o s a l might be t h a t few companies would want to s e l l automobile i n s u r a n c e because of the low premiums. But i t should be remembered t h a t under the proposed scheme each d r i v e r would pay a premium commensurate w i t h h i s r i s k exposure. T h e r e f o r e each d r i v e r would r e p r e s e n t a p r o f i t a b l e customer f o r d i r e c t w r i t e r s . T h i s s i t u a t i o n i s important because at the p r e s e n t time the d i r e c t w r i t e r s are c o n c e n t r a t i n g on the good d r i v e r s and l e a v i n g the more r i s k y d r i v e r s t o companies which employ the agency system. Consequently i f the companies who are -203-a c c e p t i n g bad d r i v e r s r e f u s e d t o operate under a d i r e c t w r i t e r system, a gap i n the market would develop. Two s o l u t i o n s t o t h i s problem are a v a i l a b l e . E i t h e r persuade the d i r e c t w r i t e r s t o accept these high r i s k d r i v e r s by p o i n t i n g out t h a t they r e p r e s e n t p o t e n t i a l l y p r o f i t a b l e b u s i n e s s . Or i f the I e d u s t r y r e f u s e s t o co-operate then the government w i l l be f o r c e d t o take over the automobile in s u r a n c e b u s i n e s s . What w i l l be the economic impact of such a change? T h i s w r i t e r t h i n k s t h a t most of the agents c o u l d c o n t i n u e t o f i n d employment as agents i n oth e r " l i n e s " o f ins u r a n c e and some c o u l d be h i r e d by i n s u r a n c e companies t o do the same work they have always done. But i n the s h o r t term t h e r e i s l i k e l y t o be some unemployment. In c o n c l u s i o n the w r i t e r f e e l s t h a t a d i r e c t w r i t i n g scheme i s p r e f e r a b l e t o an agency scheme because of 1) the lower c o s t s and 2) the l o s s of s e r v i c e and d i s r u p t i v e economic e f f e c t s can be a l l e v i a t e d . A d m i n i s t r a t i v e Costs A t h i r d area i n which p o t e n t i a l c o s t savings e x i s t i s i n the c o l l e c t i o n o f premiums and d i s t r i b u t i o n o f b e n e f i t s . The former can be reduced to some exte n t by the c o l l e c t i n g of premiums i n l a r g e volumes. T h i s c o u l d be done i n the form o f group -204-automobile i n s u r a n c e p l a n s f o r o r g a n i z a t i o n s and companies, i e . premiums are deducted on a monthly b a s i s from i n d i v i d u a l ' s cheques as are unemployment i n s u r a n c e and Canada Pension P l a n c o n t r i b u t i o n s . I t a l s o i s suggested t h a t a d m i n i s t r a t i v e expense i n the payment of b e n e f i t s would be s i m p l e r and l e s s expensive. There would be l e s s paperwork, and no c o n t r i b u t i o n and indemnity between i n s u r a n c e companies. Although i t should a l s o be r e c o g n i z e d t h a t expenses under a pure n o - f a u l t system may w e l l i n c r e a s e because of the use of p e r i o d i c payments, as opposed to lump sum payments which are awarded under the t o r t system, eg. more payments per c l a i m . Through the use of computers such payments should not c o n s t i t u t e a s u b s t a n t i a l expense, because some of the paperwork and employee time can be e l i m i n a t e d . In the w r i t e r ' s o p i n i o n such economies are a v a i l a b l e and may be i n s t i t u t e d under a no f a u l t scheme. A f u r t h e r 2* s a v i n g per premium d o l l a r i s t h e r e f o r e p o s s i b l e . Governmental Ope r a t i o n A government operated scheme c o u l d l e a d t o f u r t h e r c o s t r e d u c t i o n s both from the e l i m i n a t i o n of p r o f i t and from management economies. The p r o f i t s a v i n g would be s m a l l . As mentioned e a r l i e r the u n d e r w r i t i n g p r o f i t has been s e t a t 0.5* of the premium d o l l a r . T h e r e f o r e any p r o f i t earned by i n s u r a n c e companies must be earned from investment income. Yet i f the government were to operate the automobile i n s u r a n c e b u s i n e s s t h e r e i s a p o s s i b i l i t y -205-i f not a p r o b a b i l i t y , t h a t such a scheme would earn l e s s investment income than a p r i v a t l y operated p l a n . T h i s event c o u l d be a n t i c i p a t e d because of the r e l u c t a n c e of a govern-ment managed o p e r a t i o n to i n v e s t i n more r i s k y , h i g h e r y i e l d i n g s e c u r i t i e s . Consequently i t would be d i f f i c u l t t o p r e d i c t t h a t a governmental scheme would i n c r e a s e the l o s s f a c t o r because of a r e d u c t i o n i n the p r o f i t f a c t o r . A governmental monopoly c o u l d i n theory e x p l o i t the management economies of l a r g e p r o d u c t i o n . T h i s c o u l d be achieved through a g r e a t e r c o m p u t e r i z a t i o n of p o l i c i e s and a reduced need f o r r e - i n s u r a n c e . In a d d i t i o n i f one assumes t h a t a pure no-f a u l t scheme were r e j e c t e d by the l e g i s l a t o r s , a governmental scheme would cut out the c o s t of ( c o n t r i b u t i o n and indemnity) payments made from one i n s u r a n c e company to another i n s u r a n c e company. A n o - f a u l t scheme would e l i m i n a t e the expense of c o n t r i b -u t i o n and indemnity to a l a r g e e x t e n t because most l o s s e s would be covered by one i n s u r e r , except f o r r e - i n s u r a n c e cases. A l s o the r i g h t of a c t i o n by one i n s u r e r a g a i n s t another i n r e l a t i o n t o prepayments under the l i a b i l i t y system would no longer e x i s t . In c o n c l u s i o n the w r i t e r f e e l s t h a t the p o t e n t i a l savings by a governmental monopoly are r e l a t i v e l y s m a l l . At most a 3 0 s a v i n g per premium d o l l a r c o u l d be expected. T h i s presupposes t h a t some c o n t r o l i s p l a c e d on bureaucracy. -206-The w r i t e r would not recommend a governmental scheme un l e s s the I n d u s t r y proves u n c o - o p e r a t i v e t o the e a r l i e r s u g g e s t i o n s . T h i s c o n c l u s i o n i s based on the assumptions t h a t the p u b l i c i n g e n e r a l does not want a governmental scheme, and t h a t governmental employees are not as motivated or as i n n o v a t i v e as those i n a p r i v a t e company. Insurance Coverage, Premiums, and B e n e f i t s Insurance Coverage As mentioned e a r l i e r the i s s u e of v o l u n t a r y as compared wit h compulsory i n s u r a n c e has been l a r g e l y r e s o l v e d i n favour o f compulsory i n s u r a n c e because of the g r e a t e r e f f i c i e n c y and e q u i t y of such a system. Hence the' o n l y change under the proposed n o - f a u l t scheme i s t h a t a supplementary coverage would r e p l a c e the p r e s e n t r i g h t t o t o r t a c t i o n . Two o t h e r a s p e c t s of i n s u r a n c e procedures deserve a t t e n t i o n . F i r s t l y the r a t h e r minimal i n c r e a s e i n i n s u r e d s under the compulsory scheme, supra p.158 , can p a r t i a l l y be a t t r i b u t e d t o poor a d m i n i s t r a t i v e procedures. Consequently i t i s suggested t h a t d r i v e r ' s l i c e n c e s should be renewed every year on the d r i v e r ' s b i r t h d a y and o n l y upon proof of i n s u r a n c e . O b v i o u s l y t h i s procedure may l e a d t o some enforcement d i f f i c u l t i e s w i t h r e s p e c t t o renewal of l i c e n c e s . Hence the w r i t e r suggests t h a t a l l owners and d r i v e r s be r e q u i r e d t o purchase the compulsory p o r t i o n of the i n s u r a n c e package, and the l o s s to any occupants of -207-the car i n case o f an a c c i d e n t w i l l be absorbed by the d r i v e r ' s i n s u r a n c e i f any e x i s t s , and the owners p o l i c y w i l l serve as excess i n s u r a n c e . H o p e f u l l y t h i s w i l l encourage the owner t o t h i n k twice b e f o r e a l l o w i n g an uninsured person to d r i v e h i s c a r , eg. i n such i n s t a n c e s t h e r e should be a f i n a n c i a l s a n c t i o n f o r such an o v e r s i g h t , p o s s i b l y an i n c r e a s e i n premiums or even an i n c r e a s e i n demerit p o i n t s . A l s o the p e r i o d i c exam-i n a t i o n i n r e s p e c t of a d r i v e r ' s l i c e n c e w i l l a l l e v i a t e t h i s shortcoming t o some e x t e n t . The d r i v e r ' s or owner's p o l i c y i n a d d i t i o n t o c o v e r i n g a l l occupants i n a c a r i n which the i n s u r e d i s d r i v i n g or owns, w i l l indemnify the i n s u r e d and h i s w i f e and c h i l d r e n when they are p e d e s t r i a n s or c y c l i s t s . C h i l d r e n would be d e f i n e d as under 19 years or over 19 years and t o t a l l y dependent on the i n s u r e d because of i n f i r m i t y . The T r a f f i c V i c t i m s Indemnity Fund would s t i l l be r e q u i r e d i n o r d e r t o p r o v i d e coverage f o r i n d i v i d u a l s not p r o t e c t e d by automobile i n s u r a n c e . These c a t e g o r i e s would i n c l u d e out of p r o v i n c e m o t o r i s t s and B r i t i s h Columbia p e d e s t r i a n s or c y c l i s t s who do not d r i v e cars or who do not have parents d r i v i n g c a r s . The f a i r e s t system of fund i n g such a p o o l i s i n the form of a g a s o l i n e and d i e s e l tax so a l l d r i v e r s , i n s u r e d and u n i n s u r e d , c o n t r i b u t e t o the f i n a n c i a l burden. -208-B e n e f i t s A n o - f a u l t scheme would ensure t h a t a broader range of t r a f f i c v i c t i m s and t h e i r dependents would r e c e i v e com-p e n s a t i o n . A l s o such a p l a n would c o n s i d e r a b l y reduce the de l a y s i n payment a f t e r an a c c i d e n t has o c c u r r e d , supra,p.116. and s i m u l t a n e o u s l y would reduce the p r e s e n t c o u r t c o n g e s t i o n , supra, p. 121. The q u e s t i o n s i n r e s p e c t of b e n e f i t s under a n o - f a u l t scheme are the scope, amount, and e l i g i b i l i t y f o r b e n e f i t s . The c o n t r o v e r s y surrounding the scope of b e n e f i t s i s mainly a s s o c i a t e d w i t h the q u e s t i o n as to whether p s y c h i c l o s s e s , eg. "pain and s u f f e r i n g " s hould r e c e i v e any compensation. As forementioned the Workmen's Compensation Act, The Saskatchewan Automobile Insurance Act, and the New Zealand B i l l , supra p . I l l , a l l p r o v i d e some s o r t of r e p a r a t i o n s f o r d i s f i g u r e m e n t or permanent d i s a b i l i t y which does not n e c e s s a r i l y r e s u l t i n a reduced e a r n i n g c a p a c i t y . These types o f l o s s e s can be scheduled or assessed because they are p h y s i c a l l y obvious and can be s u b j e c t e d t o a f a i r l y o b j e c t i v e examination. "Pain and s u f f e r i n g " on the other hand i s v i r t u a l l y i m p o s s i b l e t o measure and a l s o t h e r e i s pro b a b l y l i t t l e u t i l i t y to s o c i e t y i n such payments s i n c e money w i l l not erase any p a s t or pr e s e n t p a i n . P s y c h i c l o s s , u n l i k e economic l o s s , i s an i n d i v i d u a l r a t h e r than a s o c i e t a l burden. Consequently the w r i t e r i s i n favour o f the removal of -209-" p a i n and s u f f e r i n g " as a "head" of damages i n the automobile a c c i d e n t case. In r e s p e c t of d i s f i g u r e m e n t and impairment the w r i t e r i s i n c l i n e d toward the use of v o l u n t a r y i n s u r a n c e i n such i n s t a n c e s . In cases of permanent damage to a s t a r a t h l e t e s l e g s or permanent s c a r s on the face of an a c t r e s s , any economic l o s s e s i n c u r r e d because of automobile a c c i d e n t s would be r e c o v e r e d under the compulsory and supplementary p o l i c i e s which p e r t a i n to income l o s s . In a d d i t i o n the i n d i v i d u a l c o u l d purchase v o l u n t a r y coverage w i t h r e s p e c t to d i s f i g u r e m e n t or impairment t o any l i m i t he so d e s i r e s , eg. s i m i l a r t o a l i f e i n s u r a n c e p o l i c y . Another s i t u a t i o n which should g i v e r i s e t o compensation i n a n o - f a u l t scheme i s the case of p a r t i a l d i s a b i l i t y which prevents the i n d i v i d u a l from e a r n i n g h i s p r e - a c c i d e n t l e v e l of wages. The w r i t e r t h i n k s t h a t i t i s most important t h a t a l l economic l o s s r e c e i v e s -at l e a s t minimal compensation because i t r e p r e s e n t s a burden on the r e s o u r c e s of s o c i e t y . T h i s i s e s p e c i a l important i n t h i s i n s t a n c e because the l a c k of such an award, at p r e s e n t , may be encouraging m a l i n g e r i n g s i n c e o n l y the t o t a l l y d i s a b l e d cases r e c e i v e compensation. I f p a r t i a l d i s a b i l i t y payments were a v a i l a b l e t h i s award may encourage him to perform some work, and y e t he c o u l d s t i l l be e n t i t l e d t o b e n e f i t s . At p r e s e n t i f he r e t u r n s to work f o r one day he has l o s t h i s r i g h t s to any f u r t h e r compensation i n r e l a t i o n to income l o s s . -210-The amount of b e n e f i t s i n cases of t o t a l or p a r t i a l d i s a b i l i t y or death i s another problem which f a c e s the a r c h i t e c t of an automobile compensation scheme. In t h i s w r i t e r ' s o p i n i o n the p r e s e n t l e v e l o f compulsory i n s u r a n c e b e n e f i t s are i n a -dequate. The $50 a week award i n the case of t o t a l d i s a b i l i t y i s a t b e s t a bare s u b s i s t e n c e l e v e l of income. The w r i t e r suggests t h a t a h i g h e r l e v e l of b e n e f i t s should be made a v a i l -a ble under the compulsory p r o v i s i o n of the i n s u r a n c e package i n order t o ensure t h a t most v i c t i m s under the proposed n o - f a u l t scheme do not have to r e l y on o t h e r sources which would i n d i c a t e t h a t the p l a n i s incomplete. The o b j e c t i v e of the automobile i n s u r a n c e compensation p l a n i s to recoup a l l economic l o s s s u f f e r e d by a t r a f f i c v i c t i m , t o some reasonable minimum l e v e l . . The envisaged scheme would s e t the d i v i d i n g l i n e between the compulsory and supplementary (voluntary) i n s u r a n c e coverage at the average i n d i v i d u a l income l e v e l of the p r o v i n c e of B r i t i s h Columbia. In 1971 the average a c c o r d i n g to the Canadian S t a t i s t i c a l 7 Rev%ew was approximately $150. Permanent d i s a b i l i t y awards would equal 70 p e r c e n t of the v i c t i m s average weekly s a l a r y i n g order t o a l l o w f o r the absence of income tax. I t i s i m p e r a t i v e t h a t the scheme does not encourage the i n d i v i d u a l t o s t a y o f f the j o b . In r e s p e c t of supplementary i n s u r a n c e a l a r g e r allowance must be made because of h i g h e r tax r a t e s . -211-Death b e n e f i t s would a l s o be p a i d on a p e r i o d i c b a s i s as c o n t r a s t e d w i t h the c u r r e n t form of recompense, i n a lump sum. T h i s approach i s suggested because the form of the payment more a c c u r a t e l y s i m u l a t e s the s i t u a t i o n i f there had been no a c c i d e n t , and.also p r e c l u d e s the dependents from f o o l i s h l y spending the lump sum i n a s h o r t p e r i o d . The p a r t i a l d i s a b i l i t y award would be c a l c u l a t e d on the d i f f e r e n c e between the post and p r e - a c c i d e n t e a r n i n g s . The maximum p r e - a c c i d e n t e a r n i n g s under the compulsory s e c t i o n of the i n s u r a n c e package would be l i m i t e d t o the average i n -d i v i d u a l income l e v e l of the p r o v i n c e . I t should be r e c o g n i z e d t h a t any income earned by the v i c t i m from p a r t i a l employment w i l l be t a x a b l e , but the p a r t i a l d i s a b i l i t y b e n e f i t w i l l not be assessed. Hence i n order t o g i v e the i n d i v i d u a l some i n c e n t i v e t o r e t u r n t o work under the p a r t i a l d i s a b i l i t y scheme, the t o t a l r e t u r n (income earned p l u s p a r t i a l d i s a b i l i t y b e n e f i t ) must exceed t h a t o f f e r e d under the "head" of t o t a l d i s a b i l i t y . T h e r e f o r e the w r i t e r would suggest t h a t the v i c t i m be e l i g i b l e t o r e c e i v e 80 p e r c e n t o f the d i f f e r e n c e between h i s p a s t and p r e -a c c i d e n t income i n the form of a p a r t i a l d i s a b i l i t y b e n e f i t . In a d d i t i o n i t i s recommended t h a t a l l income awards sh o u l d be t i e d t o the Cost of L i v i n g Index, and a u t o m a t i c a l l y i n c r e a s e d as the Index r i s e s . -212-The f i v e c a t e g o r i e s of i n d i v i d u a l s who must be s i n g l e d out f o r d i s a b i l i t y b e n e f i t s are the c h i l d (under 19 or over 19 and f i n a n c i a l l y dependent on h i s par e n t s because of i l l n e s s ) , s t u d e n t s , the o l d age p e n s i o n e r , the unemployed worker, and the housewife. The w r i t e r f e e l s t h a t i f the unemployed i n d i v i d u a l and the pen s i o n e r are i n s u r e d they should be e n t i t l e d t o b e n e f i t s a c c o r d i n g to t h e i r p a s t and p r e s e n t income l e v e l s , r e s p e c t i v e l y . The housewife should r e c e i v e a b e n e f i t equal t o h a l f o f her husband's s a l a r y w i t h a maximum of $75 under the compulsory s e c t i o n o f the in s u r a n c e package. I f she i s e a r n i n g an income 4- V i /•"> y~i r* /-» "i r» n r i 4 - •! 4 -1 r3 4- /-\ V \ r\ v\ sr\ 4^  A 4- o i ^ « r » m r n A v > r ' i , t v * > 4 - ^ \ T.T -I 4-V» V* r\ -v <-> —» 1 T\-V-XT The student (19 years or o l d e r and a t t e n d i n g an e d u c a t i o n a l i n s t i t u t i o n on a f u l l time b a s i s ) should be encouraged t o i n s u r e h i m s e l f to the average wage l e v e l of the p r o v i n c e . Furthermore as h i s e d u c a t i o n l e v e l i n c r e a s e s he should be advised to purchase supplementary coverage. A c h i l d who i s covered under e i t h e r h i s own p o l i c y or t h a t of h i s pa r e n t s should be awarded $50 a week (minimum d i s a b i l i t y f o r a l l a c t i v e or p o t e n t i a l workers) u n t i l age 19 . When he reaches t h a t age h i s b e n e f i t s should be i n c r e a s e d t o the h i g h e s t l e v e l p e r m i t t e d under the compulsory s e c t i o n which would be 70 p e r c e n t of $150 ($105) a t the p r e s e n t time. -213-The death b e n e f i t s would be c a l c u l a t e d and p a i d i n the same manner as i f v i c t i m was t o t a l l y d i s a b l e d . The e l i g i b i l i t y of b e n e f i c i a r i e s f o r such payments would be r e s t r i c t e d t o f i n a n c i a l l y dependent r e l a t i v e s . These would.be cases i n which the deceased p r o v i d e d f i n a n c i a l support f o r the b e n e f i c i a r y . The husband of a deceased housewife would be e n t i t l e d t o her death b e n e f i t s u n t i l he r e m a r r i e s . C h i l d r e n i n a two parent household would r e c e i v e t h e i r p a r e n t ' s death b e n e f i t s u n t i l they reached the age of 19. Parents would r e c e i v e no death b e n e f i t s i n the case of the death of any of t h e i r c h i l d r e n u n l e s s t o t a l l y dependent upon the v i c t i m f o r f i n a n c i a l support. The permanently d i s a b l e d or d i s f i g u r e d cases (non-economic l o s s ) would r e c e i v e compensation a c c o r d i n g t o the degree of d i s a b i l i t y or d i s f i g u r e m e n t and t h e i r i n s u r a n c e coverage. Such coverages would be v o l u n t a r y , and no such awards would be a v a i l a b l e under the compulsory p a r t of the i n s u r a n c e package. The p r e s e n t b e n e f i t s c o n c e r n i n g m e d i c a l , r e h a b i l i t a t i o n , and b u r i a l expenses would continue t o be p a i d a t t h e i r p r e s e n t l e v e l under the compulsory coverage. B e n e f i t s under the T r a f f i c V i c t i m s Indemnity Fund would be awarded on the assumption t h a t the v i c t i m ' s income was equal t o the average income of the p r o v i n c e . Thus v i c t i m would r e c e i v e the maximum coverage which i s s e t out i n the compulsory p o l i c y . -214-Supplementary (voluntary) coverage would be a v a i l a b l e f o r a l l c a t e g o r i e s of l o s s e s beyond the l i m i t s which are p r o v i d e d by the compulsory i n s u r a n c e . Economic l o s s coverage would however be r e s t r i c t e d t o the i n s u r e d ' s p r e s e n t l e v e l o f e a r n i n g s , u n l e s s s u b s t a n t i a l evidence of improvement c o u l d be expected, i e . the student case. B r i t i s h Columbia m o t o r i s t s t r a v e l l i n g t o other j u r i s d i c t i o n s s t i l l u s i n g the t o r t system c o u l d purchase v o l u n t a r y l i a b i l i t y i n s u r a n c e . ©llision and comprehensive i n s u r a n c e f o r p r o p e r t y damage would be v o l u n t a r y because such a l o s s does not c r e a t e an economic burden on s o c i e t y . A l s o the v o l u n t a r y approach may a s s i s t i n keeping the poor d r i v e r o f f the road s i n c e h i s f a i l u r e t o i n s u r e w i l l leave him without any car i f he cannot a f f o r d the c o s t of r e p a i r s . I f a compulsory and supplementary i n s u r a n c e scheme i s to be e f f e c t i v e the government and the I n d u s t r y must embark on an e d u c a t i o n a l a d v e r t i s i n g compaign t o make people aware of t h e i r i n s u r a n c e needs. I t may be assumed t h a t those i n d i v i d u a l s with, h i g h e r incomes are b e t t e r educated, and hence w i l l be able t o determine t h e i r i n s u r a n c e p r o t e c t i o n needs without too much d i f f i c u l t y , i e . the ones r e q u i r i n g supplementary i n s u r a n c e . E l i g i b i l i t y f o r B e n e f i t s The other problem concerns the e l i g i b i l i t y f o r b e n e f i t s . In the w r i t e r ' s view u n l e s s t h e r e i s a s t r o n g p o l i c y reason f o r -215-d i s q u a l i f y i n g an i n d i v i d u a l from b e n e f i t s such sums should be p a i d . The v i c t i m who i s denied b e n e f i t s under an automobile compensation scheme w i l l be f o r c e d t o r e l y on oth e r sources, and hence t h i s procedure w i l l r e s u l t i n the i n e q u i t a b l e e x t e r n a l i z a t i o n of c o s t s t o some e x t e n t . Consequently t h e r e should be o n l y t h r e e e x c e p t i o n s to the r i g h t t o i n s u r a n c e b e n e f i t s . F i r s t l y i n the case of i n t e n t i o n a l i n j u r y or death because such behaviour must be d i s c o u r a g e d a t a l l c o s t s . Secondly i n the i n s t a n c e o f d r i v i n g w i thout i n s u r a n c e because t h e r e must be some i n c e n t i v e f o r an i n d i v i d u a l t o i n s u r e h i m s e l f and h i s dependents. L a s t l y i n circumstances i n which t h e r e i s o v e r l a p p i n g b e n e f i t s between governmental s o c i a l i n s u r a n c e s , Workmen's Compensation, Canada Pension P l a n , and/or M e d i c a l Care P l a n , or l i f e and a c c i d e n t i n s u r a n c e , and automobile i n s u r a n c e . C o l l e c t e d funds must be awarded o n l y to the extent of the l o s s s u f f e r e d i n order t o make a l l schemes as e f f i c i e n t and e f f e c t i v e as p o s s i b l e . Scare funds must be c h a n n e l l e d t o . v i c t i m s so they a l l r e c e i v e adequate compensation, and t h i s o b j e c t i v e can o n l y be a t t a i n e d i f excess r e p a r a t i o n cases are e l i m i n a t e d . Premiums Premium r a t e s are another important f a c t o r i n an e f f i c i e n t and e q u i t a b l e scheme. The w r i t e r i s assuming t h a t m o t o r i s t s w i l l c o ntinue t o shoulder the f i n a n c i a l l o a d and l i t t l e s i g n i f i c a n t f i n a n c i a l h e l p can be expected from other f a c t o r s i n the automobile -216-a c c i d e n t scene. These f a c t o r s would i n c l u d e automobile manufacturers and highway e n g i n e e r s . In g e n e r a l i t appears d i f f i c u l t t o j u s t i f y f l a t r a t e d premiums u n l e s s one b e l i e v e s t h a t those d r i v e r s i n v o l v e d i n a c c i d e n t s should be s u b s i d i z e d by good d r i v e r s . In t h i s w r i t e r ' s view i t would appear more e q u i t a b l e and l o g i c a l t o assess r a t e s on the b a s i s of expected l o s s . . As mentioned e a r l i e r the n o - f a u l t scheme permits the i n s u r e r t o estimate the p o s s i b i l i t y o f a c c i d e n t involvement and a l s o the p o t e n t i a l l o s s of a p a r t i c u l a r i n s u r e d . T h e r e f o r e the w r i t e r would suggest a r a t i n g system based on the i n s u r e d ' s demerit p o i n t s t a n d i n g ( r e f l e c t i n g both a c c i d e n t involvement and t r a f f i c v i o l a t i o n s ) , h i s l o s s p o t e n t i a l , income l e v e l and number of dependents, and p o s s i b l y the t e r r i t o r y i n which he g e n e r a l l y d r i v e s . Although such a system i s good i n theory i t may be i m p r a c t i c a l because of the expense of such f i n e c l a s s i f i c a t i o n s . These expenses would be i n c u r r e d i n the rate-making process and a l s o i n a d m i n i s t e r i n g each case. Consequently some compromise between e q u i t y and e f f i c i e n c y must be s t r u c k . The envisaged scheme would i n v o l v e the grouping of i n s u r e d s i n t o one category. For example income l e v e l s under compulsory i n s u r a n c e coverages would be d i v i d e d i n t o t hree c l a s s i f i c a t i o n s ; " 1) gross income of $50 a week or l e s s , 2) gross income of $51 to $100 per week, and 3) gross income of $101-$150 per week. -217-Dependent c a t e g o r i e s might be: 1 ) s i n g l e , 2) m a r r i e d and one c h i l d , and 3) m a r r i e d and more than one c h i l d . Such a scheme would not o n l y be more e q u i t a b l e than the p r e s e n t f l a t r a t e approach, but may a l s o c o n t r i b u t e t o s a f e r d r i v i n g i f a f a i r , y e t s t r i c t demerit p o i n t scheme i s employed. The demerit p o i n t approach may d e t e r a c c i d e n t s because the d r i v e r w i l l r e a l i z e t h a t g r e a t e r a c c i d e n t involvement and/or more t r a f f i c v i o l a t i o n s w i l l l e a d t o h i g h e r r a t e s and an e v e n t u a l suspension. As f a r as the a c t u a l r a t e s are concerned the w r i t e r has no a c t u a r i a l sources of i n f o r m a t i o n on such matters. I t can be s t a t e d t h a t c o s t savings i n a n o - f a u l t , d i r e c t w r i t e r , and • o r i v a t e l y operated, scheme are p o s s i b l e . But whether such savings and the e l i m i n a t i o n of the d u p l i c a t i o n o f b e n e f i t s w i l l o f f - s e t the l a r g e i n c r e a s e i n the number of b e n e f i c i a r i e s under a no-f a u l t scheme and the proposed b e n e f i t s i s a moot p o i n t . C o n c l u s i o n In the o p i n i o n the the w r i t e r the adoption of a d i r e c t w r i t e r , pure no f a u l t , p r i v a t e l y operated scheme i s the next l o g i c a l step i n the development of compensation f o r t r a f f i c a c c i d e n t v i c t i m s . B a s i c a l l y the proposed p l a n i s s i m i l a r t o t h a t suggested by the Wootton Commission. In the f o u r year p e r i o d s i n c e the r e l e a s e of the Report the a t t i t u d e s of the In d u s t r y and to a c e r t a i n e x t e n t the a t t i t u d e s of the p u b l i c and the l e g a l p r o f e s s i o n •have changed so t h a t at the p r e s e n t date the proposed scheme i s both a t t r a c t i v e and f e a s i b l e . -218-O u t l i n e o f P r o p o s a l s 1. The t o r t a c t i o n should be a b o l i s h e d i n r e s p e c t of a l l automobile a c c i d e n t c l a i m s , eg. b o d i l y i n j u r y and p r o p e r t y damage. 2. Compensation f o r t r a f f i c v i c t i m s would be p a i d on a n o - f a u l t b a s i s . D r i v e r s and owners of automobiles would purchase i n s u r a n c e averages which would be p a r t l y compulsory and p a r t l y v o l u n t a r y , eg. a l l d r i v e r s should have t h e i r own p o l i c i e s . 3. The compulsory component of the i n s u r a n c e package would cover o n l y economic l o s s , but i n c o n t r a s t w i t h p r e s e n t a c c i d e n t b e n e f i t s p a r t i a l d i s a b i l i t y , would a l s o be i n d e m n i f i e d . B u r i a l , m e d i c a l , and h o s p i t a l expenses (not a l r e a d y covered by government insurance) would be covered under the compulsory s e c t i o n . 4. Compulsory b e n e f i t s i n r e s p e c t of income l o s s would be r a i s e d t o $150 i n order t o i n t e r n a l i z e the c o s t s of motor v e h i c l e a c c i d e n t s and t o ensure more s a t i s f a c t o r y compensation. 5. Supplementary coverages would be a v a i l a b l e i n r e s p e c t of economic l o s s e s above the compulsory l i m i t s . A l s o non-economic l o s s p r o t e c t i o n , eg. permanent d i s a b i l i t y o r d i s f i g u r e m e n t c o u l d be purchased. 6. Death b e n e f i t s under e i t h e r the compulsory or supplementary i n s u r a n c e would be p a i d on a p e r i o d i c r a t h e r than a lump sum b a s i s . 7. C o l l i s i o n and comprehensive i n s u r a n c e would be v o l u n t a r y under the proposed scheme. 8. An a d m i n i s t r a t i v e t r i b u n a l would be c r e a t e d t o hear d i s p u t e s between i n s u r e r s and i n s u r e d s , and no r i g h t of appeal w i l l be p e r m i t t e d t o a Court of Law. 9. D i s q u a l i f i c a t i o n s f o r b e n e f i t s w i l l be l i m i t e d to s i t u a t i o n s i n which t h e r e i s i n t e n t i o n a l s e l f - i n f l i c t e d i n j u r i e s , the d r i v e r or owner has f a i l e d t o purchase i n s u r a n c e and the v i c t i m has r e c e i v e d recompense from governmental i n s u r a n c e schemes. 10. Housewives, s t u d e n t s , p e n s i o n e r s , unemployed i n d i v i d u a l s , and c h i l d r e n w i l l a l l be e n t i t l e d t o some d i s a b i l i t y b e n e f i t s . -219-11. The payment of death b e n e f i t s w i l l hinge on f i n a n c i a l dependency between the v i c t i m and h i s r e l a t i o n s . In order to be f i n a n c i a l l y dependent the b e n e f i c i a r y must r e l y on the v i c t i m f o r f i n a n c i a l s upport, eg. w i f e or c h i l d under 19 y e a r s , or t o t a l l y d ependent-rely on him because of i n f i r m i t y , e g . any near r e l a t i v e . 12. Premiums would be based on the i n s u r e d ' s income c l a s s i f i c -a t i o n , eg. $50 or l e s s per week, h i s dependents, h i s r a t i n g t e r r i t o r y , and h i s demerit p o i n t l e v e l , eg. no s u b s i d i z a t i o n of h i g h r i s k d r i v e r s . 13. A T r a f f i c V i c t i m s Indemnity Fund would be r e t a i n e d to pay out of p r o v i n c e m o t o r i s t s i n j u r e d i n a c c i d e n t s and those i n d i v i d u a l s who are not owners or d r i v e r s of c a r s i n B r i t i s h Columbia. 14. D r i v e r ' s l i c e n c e s and owners' r e g i s t r a t i o n s would be renewed a n n u a l l y and o n l y upon proof of i n s u r a n c e . 15. D r i v i n g l i c e n c e suspensions w i l l be automatic when a c e r t a i n demerit r a t i n g l e v e l i s reached. The system would be based on both a c c i d e n t involvement and t r a f f i c v i o l a t i o n s . 16. V e h i c l e s w i l l be impounded i f a d r i v e r ' s l i c e n c e i s suspended, but i f there i s more than one d r i v e r of t h a t v e h i c l e a d i f f e r e n t c o l o u r e d l i c e n c e p l a t e w i l l be employed, and t h a t v e h i c l e i s s u b j e c t to spot checks. 17. A d i r e c t w r i t e r scheme w i l l be encouraged by means of governmental r e g u l a t i o n . 18. The p l a n would be a d m i n i s t e r e d by p r i v a t e i n s u r a n c e companies unl e s s they r e f u s e d t o adopt the d i r e c t w r i t e r method and the n o - f a u l t approach. In such an event the government would take over the o p e r a t i o n of the scheme. 19. Automobile manufacturers and highway engineers as w e l l as other c a u s a t i v e f a c t o r s would be assessed f i n e s i n p r o p o r t i o n to t h e i r c o n t r i b u t i o n to any a c c i d e n t . T h i s n e c e s s i t a t e s a more thorough i n v e s t i g a t i o n of the a c c i d e n t scene and the cause of a c c i d e n t s . . 20. Finances f o r the T r a f f i c V i c t i m s Indemnity Fund and the r e s e a r c h of a c c i d e n t s would be d e r i v e d from the forementioned f i n e s and a tax on g a s o l i n e and d i e s e l f u e l . 21. More s t r i c t d r i v e r ' s t e s t s and m e d i c a l examinations would be employed b e f o r e a d r i v e r was p e r m i t t e d on the road, and would a l s o be employed every f i v e years.on a " p e r i o d i c , renewal b a s i s . ADDENDA B i l l 78, An Act to Amend the Insurance Act was g i v e n Royal Assent on March 30, 1972 i n the B r i t i s h Columbia L e g i s l a t u r e . {Votes and Proceedings of the L e g i s l a t i v e Assembly of B r i t i s h Columbia, No. 74-75, p. 6, March 30, 1972). -220-CHAPTER I FOOTNOTES World Book Encyclopedia, 1958, V o l . 1, p. 558. 2 Dominion Bureau of S t a t i s t i c s , The Motor Vehicle, 53-203, 1950, P. 11. 3 Annual Report of the Superintendent of Motor Vehicles, Queen's P r i n t e r , 1970, P.H. 14. 4 S t a t i s t i c s Canada, Roads and Street Mileage, 53-201, 1970, p. 8. ^Province of B r i t i s h Columbia Royal Commission on Automobile Insurance, Queen's P r i n t e r , 1968. -221-CHAPTER II FOOTNOTES ^"Bvotiince of B r i t i s h Columbia Royal Commission on Automobile Insurance, Queen's Pri n t e r , 1968, p. 109. 2Id. p. 109-110. 3Id. p. 110-111. AId. p. 112-115. 5 Case of Thorns (as reported i n Bessey vs O l l i o t and Lam-bert (1681), 83 E.R. 244). 6 Harris, Donald, "Analysis of the B r i t i s h Auto Accident Compensation System," p. 65,67-69, i n Comparative Studies in Automobile Accident Compensation, Dept. of Transportation, 1970. 7 Id. p. 67. p Blyth vs. Birmingham Waterworks (1856), 156 E.R. 1047, 1049. g The Wagon Mound (1961) A.C. 388. 1 0(1963) A.C. 837. ^Interlake Tissue M i l l s Co. Ltd. vs Salmon and Beckett, (1949) 1 D.L.R. 207, 216. 12Woolmington vs D.P.P. (1935) A.C. 462, 481. 13 Scott vs London and St. Catherine Docks (1865), 159 E.R. 665. 641. 1ATemple vs Terrace Transfer L t d , (1966), 57 D.L.R. (2d) 631, -222--223-L i n d e n , A l l e n , "Automobile I n s u r a n c e B r e a k t h r o u g h i n Canada,", p. 149, 151, i n Comparative Studies in Automobile Accident Compensation, Dept. o f T r a n s p o r t a t i o n , 1970. ^Id. p. 155. 1 7 ( 1 8 0 9 ) 103 E.R. 926. 1 8 ( 1 8 4 2 ) 152 E.R. 588. 19Ibid. 20 Sigurdson vs B r i t i s h Columbia E l e c t r i c Railway Co. Ltd., (1953) A.C. 291. 2 1 S . B . C . 1925 C. 8, S . 1.. 2 2 ( 1 9 3 2 ) A.C. 562. 23Stennett vs Hancock and Peters (1939) 2 A.11 E.R. 578. 2 4 S . B . C . 1938 c. 42, S. 3. 25 Motor Vehicle Amendments, S.B.C. 1941, 2, c. 25, S.4. 26Cowper vs Studer (1951) S.C.R. 450, 456. 27 L i n d e n , A l l e n , op. c i t . , supra, f o o t n o t e 15, a t p. 153. 2 Q Motor Vehicle Act, S.B.C. 1932, c. 37, S. 12. 2 9 Ibid. ^Insurance Act, S.B.C. 1932, c. 20, S. 5. 31Motor Vehicle Act, S.B.C. 1937, c. 54, S. 11. 32Motor Vehicle Act, S.BIC. 1959 , c.' 55. S'. 6. 3 3S.B.C. 1947, c. 62, S.83-86,and S. 105-112. -224-34Id. S. 84. 35Id. S. 86. B.C. Royal Commission, pp. c i t . , supra, f o o t n o t e 430-433. 37 Motor Vehicle Act, supra, f o o t n o t e 33, at S.16 3SMotor Vehicle Act, S.B.C. 1963, c. 27, S. 22. 39 Motor Vehicle Act, supra, f o o t n o t e 33, at S. 83. 4 0 J c i . S. 85. 41B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 39 6. 4 2 I c i . p. 444. 4 3 J c i . p. 447. 44 **Id. p. 448. 45 'id. p. 73. H a r r i s , Donald, op. c i t . , supra, footnote 6 at p 46 ^ Ibid. 4 8 ( 1 9 6 6 ) S.C.R. 532. AQ Benham vs Gambling (1941) A.C. 157. 50Skelton vs C o l l i n s (1966) A.L.J.R. 180. 5 1 0 l i v e r vs Ashman (1962) 2 Q.B. 210. ^The Queen vs Jennings, supra, f o o t n o t e 48. ~*3 Ibid. -225-54MacDonald vs Deson & Deson (1970), 73 W.W.R. 241. 55 Harris, Donald, pp. c i t . , supra, footnote 6 at p. 76. 56Baker vs Bolton (1808), 1 Comp. 493. 57 Families1 Compensation Act, R.S.B.C. 1960, c. 138. 5 8 Linden, A l l e n , op. c i t . , supra, footnote 15, at p. 155. 59 B.C. Royal Commission, op. c i t . , supra, footnote 4, at p. 405. 60Id. p. 52. Keeton, Robert, and O'Connell, J e f f r e y , Basic Protection for the T r a f f i c Victim, L i t t l e , Brown, and Company, 1965, p. 3. CHAPTER I I I FOOTNOTES Tunc, Andre, " A n a l y s i s o f t h e F r e n c h Auto A c c i d e n t Compensation System," p. 1, i n Comparative Studies in Automobile Accident Compen-sation, Dept. o f T r a n s p o r t a t i o n , 1970. ^Id. p. 1. 3 Some Canadian J u r i s d i c t i o n have r e v e r s e onus c l a u s e s , e.g. O n t a r i o — Highway T r a f f i c Act R.S.O. 1970, c. 202, S. 133. M a n i t o b a — Highway T r a f f i c Act R.S.M. 1970, c. C-60, S. 144 ( 1 ) . 4 Tunc, Andre, op. cvt., supra, f o o t n o t e 1, a t p. 2-3. 5Ibid. 6Ibid. 7 I d . p. 2. - • ®Id. p. 3. 9 I b i d . I d . p. 4. ~^~Ibid. Id. p. 5. 13Ibid. Ib%d. Id. p. 6. 16 K e e t o n , R o b e r t , and O ' C o n n e l l , J e f f r e y , Basic Protection for the T r a f f i c Victim, L i t t l e , Brown, and Co., 1965, p. 202-3. -226-•227-17Id. 9. 18Ibid. 19 -r'U ' J I bid. 20Id. p. 10. Ibid. Ibid. 23 Id. p. 11. 2AIbid. 25Ibid. 26Id. p. 13-15. 27 P f e n n x g s t o r f , Werner, " A n a l y s i s o f t h e German Auto Compen-s a t i o n System," p. 33, i n Comparative Studies in Automobile Acci-dent Compensation, Dept. o f T r a n s p o r t a t i o n , 1970. 2 8 _ . _ _ Id. p. 37. 29 Id. p. 38. 30IMd. 31 Id. p. 38-39. 32 Id. p. 39. 33 Ibid. 34Ibid. 35 , Id. p. 41. 36 , Id. p. 40. 37 , . , -228-38 K e e t o n , R o b e r t , and O ' C o n n e l l , J e f f r e y , op. c i t . , supra, f o o t n o t e 16, a t p. 209. 39 T7. -A Ibxd. 40 P f e n n i g s t o r f , Werner, op. cvt., supra, f o o t n o t e 27, a t p. 46. A1Id. p. 48. A2Id. p. 49-50. 4 3 Id. p. 50. 44 p. 51-52. ^Id. p. 52. 46 B e r s t e i n , H e r b e r t , " R e p a r a t i o n s f o r T r a f f i c I n j u r i e s i n West Germany," p. 468, i n Automobile Accident Costs and Payments, ed. Conard e t a l . , U n i v e r i s t y o f M i c h i g a n P r e s s , 1964. 47 H e l l n e r , J a n , " A n a l y s i s o f t h e Swedish Auto A c c i d e n t Com-p e n s a t i o n System," p. 115, i n Comparative Studies in Automobile Accident Compensation, Dept. o f T r a n s p o r t a t i o n , 1970. 48 K e e t o n , R o b e r t , and O ' C o n n e l l , J e f f r e y , op. c%t., supra, f o o t n o t e 16, a t p. 213. 49 H e l l n e r , J a n , op. c i t . , supra, f o o t n o t e 47, a t p. 133. ^Ibid. 5 1 T 7 . -A Ibvd. 52Id. p. 134. 53Ibid. 5 4S.B.C. 1962, c. 15, S. 2. 55 . Contributory Neglrgence Act, S.B.C. 1970, c. 9, S. 1. -229-5 6Hellner, Jan, op. cit., supra, footnote 47, at p. 134-135, 51Id. p. 136. 58Ibid. 59Id. p. 136-137. 6 0 I c i . p. 137. 61ld. p. 115. 62Id. p. 117. ^ 3 Ibid. 6 4 I c i . p. 119. 6SId. p. 120. 66ld. p. 120-121. i61Id. p. 122. 68Ibid. ^Id. p. 123. Ibid. 11Ibid. 12Id. p. 124. 12Id. p. 123-124, and p. 130. 74 Id. p. 129. 15Id. p. 132-133. 7 6 , ,No Fault Wins Its Case," p. 76 in Business Week, July 31, -230-77 New York I n s u r a n c e Dept. Automobile Insurance -- For Whose Benefit?, A Report to Governor Nelson A. Rockefeller, 1970. 7 8 K e e t o n , R o b e r t , and O ' C o n n e l l , J e f f r e y , op. c i t . , supra, f o o t n o t e 16, a t p. 76. 79 Massachusetts General Annoted Laws, c. 90, S. 34A, and S. 113C. 8 0 K e e t o n , Robert, and O ' C o n n e l l , J e f f r e y , op. c i t . , supra, f o o t n o t e 16, a t p. 77. 81 M a s s a c h u s e t t s Laws, supra, f o o t n o t e 79. 82 Conard, A., e t a l . , Automobile Accident Costs and Pay-ments, U n i v e r s i t y o f M i c h i g a n P r e s s , 1964. 8 3 J c i . p. 138-139. 84 Id. p. 5 and 196. Id. p. 4. 86Ibid. 8 7 K e e t o n , R o b e r t and O ' C o n n e l l , J e f f r e y , op. c i t . , supra, f o o t n o t e 16. 8 8 M a s s a c h u s e t t s Laws, supra, f o o t n o t e 79, a t c. 90, S. 34M. S9Id. C. 90, S. 34A. Ibid. 9 L , . , Ibid. 92 Ibid. 9 3 Ibid. 94Id. C. 231, S. 6D. -231-9 5 Ryan, John, "Massachusetts Tries.No-Fault (1970), 57, A.-B.- A : J . 431, 432. 96 Massachusetts Laws, supra, footnote 79, at c. 90, S. 34M. 97 No Fault Wins, op. c i t . , supra, footnote 76. 9 8 Best's Weekly News Digest, Jan. 10, 1972, p. 2. 99 -See Ghiardi, James, and Kircher, John, "Automobile In-surance: Ah Analysis of the Massachusetts Plan," (19 70) 21 Syracuse L.R. 1135. F l o r i d a Automobile Reparations Reform Act 1971, F l o r i d a General Laws, c. 71 - 252. 1 0 1 I c i . S. 7 (1) (a and b) . 102Id. S. 7(1)(C). i n -3 * ~ J d . S. 7(1). Ibid. 105 ±V0Id. S. 7 (3) (a) 1 0 6 J c i . S. 8(2) 107 'id. S. 4 and 12. 10 8 Rokes, W i l l i s , No-Fault Insurance, Insurors Press, 1971. 109 The S t a t i s t i c a l Exhibit, 1970, p. i i i . 1 1 0 S . S . 1946, C. 11. Automobile Accident Insurance Act, R.S.S. 1965, c. 409, S. 24. 2 Ibid, 'ibid. -232-1UIbid. 115Id. S. 22. 116Ibid. 117Ibid. 11SId. S. 21. ^ 9 Ibid. 120Id. S. 23. 121Id. S. 35 and S. 39. 122 Province of B r i t i s h Columbia' Royal Commission on Auto-mobile Insurance, Queen's P r i n t e r , 1968, p. 34. 123 Automobile Accident Insurance Act, supra, f o o t n o t e 111. a t S. 39. 124 L^Id. S. 20. 125Ibid. 126Id. S. 31. 12 7 B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 122, a t p. 35. 1 2 8 F i n l a y , Gordon, "Canadian Comment," p. 56, 57 i n Best's Review, P r o p e r t y and L i a b i l i t y e d . , Aug. 1971. 3 29 Saskatchewan Regulations, 72/71, Schedule B. 130Id. S c h e d u l e A. 131Id. S. 5(2) and S. 37. T O O Saskatchewan Government I n s u r a n c e O f f i c e , Saskatchewan Automobile Insurance Act Explained, 1965, p. 20-21. -233-1 3 3 K e e t o n , Robert, and O'Connell, J e f f r e y , op. ait., supra, f o o t n o t e 16, a t p. 145. 1 3 4 S c h u m i a t c h e r , M o r r i s , "State Compulsory Insurance A c t — An A p p r a i s a l , " (1961) 39 Canadian Bar R. 107. 135 'ibid F i n l a y , Gordon, op. c i t . , supra, f o o t n o t e 128. 136 O n t a r i o Insurance Dept. Letter to Automobile Insurance Policyholders, Jan. 1, 1972. 138 F i n l a y , Gordon, op. c i t . , supra, f o o t n o t e 128. Ibid. Ibid. Ibid. Ibid. Ibid. 144,, . , Ibid. 145,, . , Ibid. 14 6 Keeton, Robert, and O'Connell, J e f f r e y , op. c i t . , supra, f o o t n o t e 16, a t p. 194. 1 4 7New Zealand Embassy, New Zealand News, 1972, V o l . 27, No. 1, p. 2. I Did. 149,, • , Ibid. 150,, • , Ibid. 151 r i , • A Ibid. 1 5 2 I b i d . CHAPTER IV FOOTNOTES ^Province of B r i t i s h Columbia Royal Commission on Auto-mobile Insurance, Queen's P r i n t e r , 1968. 2 Order i n C o u n c i l 1966/239. 3Ibid. A R.S.B.C. 1960, C. 197, as amended. 5 R.S.B.C. 1960, C. 253, as amended. R.S.B.C. 1960, C. 74, as amended. 7 B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 1, a t p, 605. 8 J c i . p. 609. 9Id. p. 624. 10Id. p. 606-607. ^Insurance Act, supra, f o o t n o t e 4, a t s. 235A, and Motor Vehicle Act, supra, f o o t n o t e 5, a t s. 2 ( 2 a ) . Ibid. 13 Motor Vehicle Act, supra, f o o t n o t e 5, a t s. 9 1 ( 1 ) . 14 Insurance Act, supra, f o o t n o t e 4, a t s. 235. 15Id. S. 248 ( 2 ) . 16 Mr. W i l c k e n , C , L e t t e r from I n s u r a n c e Bureau o f Canada A c t u a r y . -234--235-11Motor Vehicle Act, S.B.C. 1969, c. 20, S. 7 9 ( 1 ) . 18 MLAS Seek New A d v i c e i n Car I n s u r a n c e Study, Vancouver Sun, March 7, 1969, p. 10. 19 Insurance Act, supra, f o o t n o t e 4, a t s e c . s c h e d u l e . 20 Id. p. 717-724, and Insurance Act, S.B.C. 1969, c. 11, S. 250M. 21 B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 1, a t p. 717-729. 22 Insurance Act, S.B.C. 1969, C. 11, S. 250M. 23 B r i t i s h Columbia Regulations, 42/71. 24 Insurance Act, supra, f o o t n o t e 22, a t s. 2500. 25 B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 1, a t p. 714. 26Ibid. 27 Insurance Act, supra, f o o t n o t e 22, a t s. 250J. 2 8 B r i t i s h Columbia Regulations, 42/71. 29 B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 1, a t p, 609-610. 3 0 - A Ibid. 31 Id. p. 633-636. 32Id. p. 622-623. 33Id. p. 609-613. 34 Id. p. 610. 35 Ibid. -236-36Ibid.' 37 . A t i y a h , P., " B r i t i s h Columbia Royal Commission on Auto-mobile Insurance," (1969) 32 Modern 'L.R. 547, 549 . 38 B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 1, a t p. 611. 39Ibid. Ibid. 41Id. p. 612. A2Id. p. 613. Ibid. 44 . Medical Care Act, R.S.C. 1970, C. M-5 and Hospital In-surance Act, R.S.B.C. 1960, C. 180. 4 5 B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 1, a t p. 699. 4 6 Insurance Act, supra, f o o t n o t e 22, a t Second Schedule, S.B., Def. 47ld. S. 248(1). 48 ™Id. S. 231. 4 9 I c i . S. 248 (3). 50 3 U J c i . S. 246. 51 Insurance Act Amendment, B i l l 78, 1972, S. 2 & 3. Ibid. 5 3 Insurance Act, supra, f o o t n o t e 22, a t Second Schedule, S, 4 d. SS. 2, P a r t I. -237-5 5 I c i . SS. 2, P a r t I , B ( 3 ) . 56Id. SS.2, P a r t I , A. 51Ibid. 5 8 l b i d . 59 Id. SS. 2, P a r t I , B ( 8 ) . 6 0 B r i t i s h Columbia Regulations, 151/71. 61 Insurance Act, supra, f o o t n o t e 22, a t Second S c h e d u l e , B., P a r t I I . ^2Ibid. Ibid. Ibid. 65Ibid. 66Ibid. 6 1 Id. S, B ( l ) . 6 8 Medical Care Act, supra, f o o t n o t e 44. 69 B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 1, a t 623. 70 Insurance Act, supra, f o o t n o t e 22, a t Second S c h e d u l e , B., E x c l . 1 1 r u -A Ibid. 12 B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 1, a t 624. 13Id. p. 624-629. ~^4Id. p. 625. -238-15Id. p. 620-621. 16Id. p. 625. 11Id. p. 628. 7 8 B r i t i s h Columbia Regulations, 42/71. 79 Motor Vehicle Act, supra, footnote 17, at s. 15. 80 B r i t i s h Columbia Regulations, 15/70. 81 Motor Vehicle Act, supra, footnote 17, at s. 4. 82 Contributory Negligence Act, S.B.C. 1970, c. 9, S. 1. 8 3 Motor Vehicle Act, supra, footnote 17, at s. 12. 84 B.C. Royal Commission, op. c i t . , supra, footnote 1, at p. 629, 8 5 Motor Vehicle Act, supra, footnote 17, at s. 2(2d). 8 6 B.C. Royal Commission, op. c i t . , supra, footnote 1, at p. 629. -239-CHAPTER V FOOTNOTES ^Province of B r i t i s h Columbia Royal Commission on Auto-mobile Insurance, Queen's P r i n t e r , 1968, p. 606. 2Id. p. 401. 3Id. p. 607. 4IcZ. p. 121-122. 5 I n s u r a n c e Bureau o f Canada, Submission to the B r i t i s h Columbia Automobile Insurance Board on Accident Benefits, J a n . 10, 1972, p. 1. g B.C. Royal Commission, op. c i t . . supra, f o o t n o t e 1, a t p. 182. 1Id. p. 181. 8Id. p. 183-185. 9Id. p. 186-187. 1 0 J c i . p. 200-201. ^ C a n a d i a n U n d e r w r i t e r s A s s o c i a t i o n , Submissi on to the B r i t i s h Columbia Automobile Insurance Board on Accident Bene-f i t s , J a n . 10, 1972, p. 12. 12 I.B.C. Submission, op. c i t . , supra, f o o t n o t e 5, a t p. 3. 13 Independent I n s u r a n c e C o n f e r e n c e , Submission to the B r i t i s h Columbia Automobile Insurance Board, J a n . 6, 1972, p. 4. 1 4 M c C o n n e l l , Bob, "Companies F i g h t Rate C u t s , " p. 23, i n The Vancouver Province, J a n u a r y 13, 1972. ^Insurance Act, R.S.B.C. 1960, C. 197, S. 2 4 8 ( 2 ) , as amended. -240-1 c "Change i n Insurance Lav; Seen After L i a b i l i t y Ruling," p. 52, i n The Vancouver Sun, Feb. 14, 1972. 17 Insurance Act Amendment, B i l l 78, 1972. lsid. 19 I.B.C. Submission, op. c i t . , supra, footnote 5, at p. 3-4. 20Id. p. 8. 2^~Id. p. 3. 2 2 Ibid. 23 I.I.C. Suvmission, op\ c i t . , supra, footnote 13, at p. 4. Ibid. 25 B. C. Royal Commission, op. c i t . , supra, footnote 1, at p. 237. 2 fi B r i t i s h Columbia Regulations, 43/71 D e f i n i t i o n s . 2 7 Per Mr. Kenneth Malthouse, B.C. Manager of I.B.C. and the Director of the T.V.I.F. 2 8 "No Fault Car Insurance Cut," p. l f i n The Vancouver Sun, Jan. 22, 1972. 2 9 C. U.A. Submission, op. c i t . , supra, footnote 11, at p. 6. 3 0 , Ibid. 31 B.C. Royal Commission, op. c i t . , supra, footnote 1, at p. 304-305. 32Id. p. 305. 3 3 I.B.C. Submission, op. c i t . , supra, footnote 5, at Appendix A - l . 3^B.C. Royal Commission, op. c i t . , supra, footnote 1, at p. 305. -241-35 . . I.B.C. Submission, op. c i t . , supra, f o o t n o t e 5, a t Appe n d i x A - l . 36Ibid. 37 Saskatchewan Government I n s u r a n c e O f f i c e , Saskatchewan's Automobile Accident Insurance Act Explained, 1965, p. 21-22. 38 B. C. Royal Commission, op. c i t . , supra, f o o t n o t e 1, a t p. 354. 39 I.B.C. Submission, op. c i t . , supra, f o o t n o t e 5, a t p. 14. 40Ibid. 41 I.I.C. Submission, op. c i t . , supra, f o o t n o t e 13, a t p. 7 and 12. A2Id. p. 6. 4 3 T7 A n- — ~ ~ ~ - ^ ., ^ „ ^ / _L — — sz^ —i — i— 1 1 — L _ — l n uiAumuooisun, u y . is is . , e uy vu., UUU I_G J_ x , a u x J • 44 il/o Fault Car Insurance Cut, op. c i t . , supra, f o o t n o t e 28. 45 Per Mr. W. H. Day, S e c r e t a r y o f t h e Board. 46 C. U.A. Submission, op. c i t . , supra, f o o t n o t e 11, a t p. 11. 47 Annual Report of the B r i t i s h Columbia Superintendent of Insurance, Queen's P r i n t e r , 1971, p. E 77. 48 I n s u r a n c e Bureau o f Canada, The S t a t i s t i c a l Exhibit, 1970, p. 6. 49 Report of the B.C. Superintendent of Insurance, op. c i t . , supra, f o o t n o t e 47. 50 B r i t i s h Columbia Regulations, 43/71, S p e c i a l P r o v i s i o n s , D e f i n i t i o n s . ^^Id. D e f i n i t i o n s , S. 1. 52Id. P a r t I I o f SS. 2. 5 3 T . T . C . Submission, op. c i t . , supra, f o o t n o t e 13, a t p. 8 5 4B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 1, a t p 54. 5 5 7 c i . p. 76. 5SId. p. 74 and 78. 57 B r i t i s h Columbia Regulations, 43/71, S. 7. 5 8 I d . S. 3. 5 9 0 f G u i l d , Y u l e , S c h m i t t , Lane, Hutcheon and C o l l i e r . 60 B r i t i s h Columbia Regulations, 43/71. ^B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 1, a t p. 113. 62Ibid. 63Id. p. 98. 6 4"New Judge Sworn I n , " p. 8, i n The Vancouver Sun, Feb. 1 1972. Insurance Act, supra, f o o t n o t e 15, a t s. 223, S t a t u t o r y C o n d i t i o n 6 ( 3 ) . -243-CHAPTER VI FOOTNOTES ^Insurance Act, R.S.B.C. I960, c. 197, S. 246-250, as amended. 2 Motor Vehicle Act, R.S.B.C. 1960, c. 253, S. 18 and 54 (1). 3Id. S. 54(5). 4 Per Mr. A r t h u r Sharpe, A d m i n i s t r a t i v e O f f i c e r , D r i v e r L i c e n c e D i v i s i o n , Motor V e h i c l e Branch, V i c t o r i a . 5 Ibid. ^Province of B r i t i s h Columbia Royal Commission on Automobile Insurance, Queen's P r i n t e r , 1968, p. 413. 7Ibid. . 8Ibid. 9 T a r r a n t s , W i l l i a m , "Myths and Mis c o n c e p t i o n s i n T r a f f i c S a f e t y , " p. 52 , 60, i n Highway Research New.s, S p r i n g 1968. Ibid. " ^ K l e i n , David, and W a l l e r , J u l i a n , Causation, C u l p a b i l i t y , and Deterrence in Highway Crashes, Dept. o f T r a n s p o r t a t i o n , 1970, p. 120. Ibid. 13 -T a r r a n t s , W i l l i a m , op. c i t . , supra, f o o t n o t e 9, at p. 61. 14 Grossman P u b l i s h e r s , 1965. 15 Motor Vehicle Safety Act, S.C. 1969-70, C. 30, S. 5, and Motor Vehicle Safety Act Regulations "C.S.0.R./70-487 Schedule C. -244-16 Cited i n Lawton, Lawrence, "Psychological Aspects of the Fault System as Compared with the No-Fault System of Automobile Insurance," (1971) 20, U. of Kansas L.R. 57, 65. 17 Supra, footnote 11 at p. 106 r e f e r r i n g to An Investigation of Used Car Safety Standards - Safety Index, F i n a l Report to the Dept. of Transportation, 19 70. 18 Annual Report of the Superintendent of Motor Vehicles for B r i t i s h Columbia, Queen's P r i n t e r , 1970, P.H. 25. 19 Tarrants, William, op. c i t . , supra, footnote 9, at p. 55. 20 Stonnex, Kenneth, "Roadside Design for Safety," p. 707 i n Accident Research, ed. by Haddon, W., Suchman, E., and K l e i n , D., Harper & Row, 1964. 21Id. p. 710-715. 22 Ibid. o -> '""McMonagle, Carl, "The E f f e c t of Roadside Features on T r a f f i c Accidents," p. 217, 220 i n Accident Research, ed. by Haddon, W., Suchman E., and K l e i n D., Harper & Row, 1964. 24 Id. p. 222. 25 B.C. Royal Commission, op. c i t . , supra, footnote 6, at p. 414. 26 Report of Supt. of Motor Vehicles, op. c i t . , supra, foot-note 18 , at. p. H 24. 21Id. p. 14-26. 2 8 Stonnex, Kenneth, op. c i t . , supra, footnote 20, at p. 709. 29 S t a t i s t i c s Canada, Motor Vehicle T r a f f i c Accidents, 53-206, 1970, p. 7. 30 Haddon, William, "The Prevention of Accidents," p. 597, 615, i n Preventive Medicine, ed. by Clark D., and MacMahon, B., L i t t l e , Brown & Co., 1967. 31Id. p. 615-616. : -245-32Id. ' 33Id. p. 617. 34 Id. p. 616. 35 . . . Sharpe, A r t h u r , supra, and Vancouver P o l i c e , T r a f f i c D i v i -s i o n S t a t i s t i c s (not r e p o r t e d ) . 36 K l e i n , D a v i d , and W a l l e r , J u l i a n , op. c i t . , supra, f o o t -n o t e 11, a t p. 75. 37 Motor Vehicles Act, supra, f o o t n o t e 2, a t S. 2 & 3, and t h e Criminal Code, R.S.C. 1970, c. C-34, S. 236. 38 D a l e , R., The Role of the Drinking Driver in T r a f f i c Accidents, U. o f I n d i a n a P r e s s , 1964, p. 213. 39 B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 6, a t p. 417. 4 0 S m i t h , W., " D r i n k i n g and D r i v i n g , " (1960-61) 3, Criminal L.Q. 65, 101. 41 AMA, Alcohol and the Impaired Driver. 1968, p. 7. 42 K l e i n , D a v i d , and W a l l e r , J u l i a n , op. c i t . , supra, f o o t -n o t e 6, a t p. 417. 43 T a r r a n t s , W i l l i a m , op. c i t . , supra, f o o t n o t e 9, a t p. 57. 44 K l e i n , D a v i d , and W a l l e r , J u l i a n , op. c i t . , supra,foot-n o te 11, a t p. 80-81. 4~*B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 6, a t p. 416. 46 Report of the Supt. of Motor Vehicles, op. c i t . , supra, f o o t n o t e 18, a t p. H 23. 4 7 J c i . p. H 24. 48 K l e i n , D a v i d , and W a l l e r , J u l i a n , op. c i t . , supra, f o o t -n o t e 11 a t p. 82-83. -246-49 B.C. Royal Commission, op. a i t . , supra, footnote 6, at p. 428. 50 Kle i n , David, and Waller, J u l i a n , op. c i t . , supra, foot-note 11, at p. 83-84. 51Id. p. 84-86. 52 Id. p. 88, c i t i n g Waller and Goo Study (unreported). 5 3 See Maloney, Frank and Rush, William, "The Accident Prone Drive: The Automative Ages Biggest Unsolved Problem," (1961-62) 14, U. of F l o r i d a L.R. 364. 54 Cresswell, W., and Froggatt, P., The Causation of Bus Driver Accidents: An Epidemiological Study, Oxford Univ. 1963, c i t e d i n Accident Research, ed by Haddon, W., Suchman, E., and K l e i n , D., Harper & Row, 196 4, p. 44 3. 5 5 Haddon, W., Suchman, E., and Kl e i n , D., Accident Research, Harper & Row, 1964, p. 44 3. McFarland, R., "Psychological and Behavioral Aspects of Automobile Accidents," (1968) 12, T r a f f i c Research Rev. 73. 57 Selzer, Rogers, and Kern, "Fatal Accidents: The Role of Psychopathy, Social Stress, and Acute Disturbance," (1968) 124 A.J. of Psychiatry, 1029, 1035. 5 8 Haddon, William, op. c i t . , supra, footnote 30, at p. 614. 59 Kl e i n , David, and Waller, J u l i a n , op. c i t . , supra, foot-note 11,, at p. 215. 60 r, . , Ibid. Report of Supt. of Motor Vehicles, op. c i t . , supra, footnote 18, at p. H 24. Ibid. 6 3 Haddon, William and Bradess, V i c t o r i a , "Alcohol i n the Single Vehicle F a t a l Accident," p. 208-210 i n Accident Research, • ed. by Haddon, W., Suchman, E., and Kl e i n , D., Harper & Row, 1964. -247-64 K l e i n , David, and W a l l e r , J u l i a n , op. c i t . , supra, f o o t -note 11, at p. 129. 6 5 J c i . p. 118. 66Id. p. 129. 67 Haddon, W i l l i a m , Suchman, E., and K l e i n , D., op. c i t . , supra, f o o t n o t e 55, at p. 496. 68 Cromton, R., " D r i v e r Behaviour and L e g a l Sanctions — A Study of Deterrence," (1969), 67 Michigan L.R. 421, 433. Ibid. ^®Id. p. 434. 71 Campbell, B., "The E f f e c t s o f D r i v e r Improvement A c t i o n s on D r i v i n g Behavior," p. 638, 651, i n Accident Research, Haddon, W., Suchman, E., and K l e i n , D., Harper & Row, 1964. 12Ibid. 73 L i t t l e , J . , "A Theory and E m p i r i c a l Study o f What Deters D r i n k i n g D r i v e r s , " (1970), 23 Administrative L.R. 23, 50. Ibid. 75^ . . . . . . ^ O p i n i o n given d u r i n g an i n t e r v i e w . 7 6 Per Mr. Harry P e t r i e , C o r p o r a l of the Vancouver C i t y P o l i c e , T r a f f i c D i v i s i o n . 77 Keeton, Robert, and O'Connell, J e f f r e y , Basic Protection for the T r a f f i c Victim, L i t t l e , Brown & Co., 1965, p. 249. 7 8 K l e i n , David, and W a l l e r , J u l i a n , op. c i t . , supra, f o o t n o t e 11, a t p. 137. 79 S t a t i s t i c s Canada, op. c i t . , supra, f o o t n o t e 29, a t p. 7. 80 Lawton, Lawrence, op. c i t . , supra, f o o t n o t e 16, a t p. 76. -248-8]l'Id. p. 78-79. 8 2 K l e i n , D a v i d , and W a l l e r , J u l i a n , op. c i t . , supra, f o o t n o t e 11, a t p. 133. 83Id. p. 134.-135. 84 N e t h e r t o n , Ross, "Highway S a f e t y Under D i f f e r e n t Types o f L i a b i l i t y L e g i s l a t i o n , " (1954) 15 Ohio State L.J. 110-111. 8 5 Keet o n , R o b e r t , and O ' C o n n e l l , J e f f r e y , op. c i t . , supra, f o o t n o t e 77, a t p. 248. 86 Cromton, R., op. c i t . , supra, f o o t n o t e 68, a t p. 445. 87 B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 6, a t p. 98. 8 8 Cromton, R., op. c i t . , supra, f o o t n o t e 68, a t p. 445. 89 Blum, W a l t e r , and K a l v e n H a r r y , rub lie Law Perspectives on a Private Law Problem Auto Compensation Plans, L i t t l e , Brown, and Co., 1965, p. 69. 90 Winters vs B r i t i s h Columbia E l e c t r i c Railway Co. Ltd. (1911), 15 B.C.R. 81. 91 McLure vs The General Accident Assurance Co. of Canada (1924-25), 35 B.C.R. 33. 92 Sharpe, A r t h u r , supra, f o o t n o t e 4. 93 K e e t o n , R o b e r t , and O'Connor, J e f f r e y , op. c i t . , supra, f o o t n o t e 77, a t p. 252-253. 94Id. p. 253. 95 C a l a b r e s i , Guido, The Costs of Accidents, Y a l e U n i v e r s i t y P r e s s , 1870, p. 68-69. 96 P a l m e r , G e o f f r e y , " A b o l i s h i n g t h e P e r s o n a l I n j u r y T o r t System: The New Z e a l a n d E x p e r i e n c e , " (1971) 9 Alberta L.R. 169, 180-181. 9 7 Public Attitudes Toward Auto Insurance, Dept. o f T r a n s -p o r t a t i o n , 1970, p. 67. -249-CHAPTER V I I FOOTNOTES F i n l a y , Gordon, "Canadian Comment," p. 56, 57 i n Best's Review, P r o p e r t y and L i a b i l i t y , ed. Aug. 1971, and t h e I n s u r a n c e Bureau o f Canada, The S t a t i s t i c a l Exhibit, 1970, p. i i . 2 F i n l a y , Gordon, "Canadian Comment," p. 47-49 i n Best's Review, P r o p e r t y and L i a b i l i t y e d . , J u l y 1970. 3 F i n l a y , Gordon, "Canadian Comment," p. 60, 62 i n Best's Review, P r o p e r t y and L i a b i l i t y e d., March 1971. 4 Province of B r i t i s h Columbia Royal Commission on Auto-mobile Insurance, Queen's P r i n t e r , 1968, p. 200-201 and 381 and see supra p. 90. 5,, l a . p. D/D. 6Id. p. 5.69-571. 7 . . Dominion Bureau o f S t a t i s t i c s , Crime S t a t i s t i c s , 85-205, 1969, p. 31. g B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 4, a t p. 35. 9 Id. p. 573. ^ I n s u r a n c e Bureau o f Canada, The S t a t i s t i c a l Exhibit, 1970, p. 6. 11 Supra, p. 106-115. 12 B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 4, a t p. 578. 13 Id. p. 376. 1AId. p. 461-462. -250-15 Green, John, "A F i s h Out o f Water — C l a s s i c a l F a u l t on t h e Highway," (1970) 35 Sask L.R. 2, 18. 16Id. p. 19. 17 W r i g h t , C e c i l , Cases on the Law of Torts, B u t t e r w o r t h s , 4t h ed. 1967, p. 11. Ibid. 19 W e i l e r , P a u l , " G r o p i n g Towards a C a n a d i a n T o r t Law; The R o l e o f t h e Supreme C o u r t o f Canada," (1971), 21, Univ. of Toronto L.J. 279, 280. 2 0 Rokes / W i l l i s , No-Fault Insurance, I n s u r o r s P r e s s , 1971, p. 128. 21 Id. p. 129-130, quote from U.S. Congressional Record, 92nd C o n g r e s s , 1 s t S e s s i o n , 1971, V o l . 117, No. 22. 22 . . . K l e i n , D a v i d , and Weiler,- J u l i a n , - Causation, C u l p a b i l i t y and Deterrence in Highway Crashes, Dept. o f T r a n s p o r t a t i o n , 1970, p. 129. 23Id. p. 130-133. 24 W e i l e r , P a u l , op. c i t . , supra, f o o t n o t e 19, a t p. 278. 25 M a r r y o t t , F r a n k l i n , " T e s t i n g t h e C r i t i c i s m s o f t h e F a u l t Concept," (1968), 35, Insurance Counsel J. 112, 113. 2 6 Gowan, B r e l a n d , "Reformer f o r C a l i f o r n i a A u t o m o b i l e L i a -b i l i t y I n s u r a n c e , " (1970), P a c i f i c L.J. 290-300. 27 Blum, W a l t e r and K a l v e n , H a r r y , Public Law Perspectives on a Private Law Problem -- Auto Compensation Plans, L i t t l e , Brown & Co., 1967, p. 9. 28r, . , Ibid. 29 Id. p. 12. Id. p. 13. -251-32 Wright, C e c i l , "The Adequacy of the Law of Torts," p. 579-592 i n Studies in Canadian Tort Law, ed. Linden, A l l e n , Butterworths, 196 7. 3 3Ahlstrom, Bert, "The Faults i n No-Fault," (1971) 6 Land and Water L.R. I l l , 119. 34 Per Kenneth Malthouse, Manager of Insurance Bureau of Canada i n B.C. 35 Keeton, Robert, and O'Connell, J e f f r e y , Basic Protection for the T r a f f i c Victim, L i t t l e , Brown & Co., 1965, p. 145. 36,, Supra, p. 108-110. 37 Per Mr. H. Midgley , Inspector of Insurance, Vancouver. 3 8 Saskatchewan Government Insurance O f f i c e , Submission to the B r i t i s h Columbia Royal Commission on Automobile Insurance, 1967, p. 10.. "^Rokes, W i l l i s , op. c i t . , supra, footnote 20, at p. 163-164. Ibid. 41 Thorpe, P h i l i p , Compensation Reform, Accident Costs, and T r a f f i c Safety: Toward a Uni f i e d Motor Transport P o l i c y (1971), 46 Indiana L.J. 301, 311. 42 ' Id. p. 312-318. 4 3See Skelton vs C o l l i n s (1966), 39 A.L.R.R. 480, and The Queen vs Jennings (1966) S.C.R. 532. 44 Rokes, W i l l i s , op. c i t . , supra, footnote 20, at p. 183-186. 45 AIA Looks at New Insurance Era; No-Fault Auto Case Gets Scrutiny," National Underwriter, May 23, 1969, p. 1, 52. 4 6 'B.u. Royal Commission, op. c i t . , supra, footnote 4, at p. 404. -252-4 7 F r a n k l i n , Marc, " R e p l a c i n g t h e N e g l i g e n c e L o t t e r y : Com-p e n s a t i o n and S e l e c t i v e Reimbursement," (1967) 53 V i r g i n i a L.R. 774, 793. 48 New Z e a l a n d Embassy, New Zealand News, V o l . 27, No. 1, 1972, p. 2. 4 9R.S.B.C. 1960, c. 59, S. 2 4 ( 2 ) , as amended. 50 R.S.S. 1965, c. 409, S. 21, as amended. 51 K e e t o n , Robert, and O ' C o n n e l l , J e f f r e y , " A l t e r n a t i v e P a t h s Toward N o n f a u l t A u t o m o b i l e I n s u r a n c e , " (1971) 71 Columbia L.R. 241. 52 C a l a b r e s i , G u i d o , "The New York P l a n : A F r e e C h o i c e M o d i f i c a t i o n , " (1971) 71 Columbia L.R. 267. 53 K e e t o n , R o b e r t , and O ' C o n n e l l , J e f f r e y , op. c i t . , supra, f o o t n o t e 51, a t p. 250. r- A C a l a b r e s i , G u i d o , op. c i t . , supra, f o o t n o t e 52, a t p. 269. 55 Thorpe, P h i l i p , op. c i t . , supra, f o o t n o t e 41, a t p. 328-329. 56 C a l a b r e s i , G u i d o , The Cost of Accidents, Y a l e U n i v e r s i t y P r e s s , 1970, p. 135-173. '57 Thorpe, P h i l i p , op. c i t . , supra, f o o t n o t e 41, a t p. 329. 5 8 I s o n , T e r r e n c e , "Highway A c c i d e n t s and t h e Demise o f T o r t L i a b i l i t y , " (1969), 47 Canadian Bar R. 304, 308. 59 Supra, p. 102. 6 0 R o k e s , W i l l i s , "The Saskatchewan P l a n , " (1962) 29 J. of Insurance 373, 379-380. 61Id. p. 380. 62 Supra, p. 101. 6 3 P e r Dr. C h r i s t o p h H a e h l i n g Von La n z a n a u e r , P r o f e s s o r , S c h o o l o f B u s i n e s s A d m i n i s t r a t i o n , U. o f Western O n t a r i o , who -253-i s c u r r e n t l y s t u d y i n g t h e Canadian I n s u r a n c e I n d u s t r y , 64 P e r Mr. J . P. Brown, E x e c u t i v e O f f i c e r o f Saskatchewan Government I n s u r a n c e O f f i c e . 6 5 S.G.I.O., op. c i t . , supra, f o o t n o t e 38, a t p. 17. 66Id. p. 21-22. 67 Annual Report of the B r i t i s h Columbia Workmen's Compensa-tion Board, Queen's P r i n t e r , 1970, p. 12. 68 Blum, W a l t e r , and K a l v e n , H a r r y , op. c i t . , supra, f o o t n o t e 27 a t p. 25. 69 B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 4, a t p. 729. 10Id. p. 726. Insurance Act, 12Id. S. 250P. 73 B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 4, a t p. 35. 74 F i n l a y , Gordon, op. c i t . , supra, f o o t n o t e 1, a t p. 57. 75 B.C. Royal Commission, op. c i t . , supra, f o o t n o t e 4, a t p. 717. 76 F i n l a y , Gordon, "Canadian Comment," p. 68, 69, i n Best's Review, P r o p e r t y and L i a b i l i t y ed. June 1971. CHAPTER V I I I • FOOTNOTES • "^Thorpe, P h i l i p , "Compensation Reform, A c c i d e n t Costs, and T r a f f i c S a f e t y : Toward a U n i f i e d Motor T r a n s p o r t P o l i c y " , (1971) 46 Indiana L.J. 301. 2 Workmen's Compensation Act, S.B.C. 1968, c. 58, S. 79. 3 F e b r u a r y 1972, p. 22-24. 4 per Mr. Kenneth Malthouse, Manager of I.B.C. i n B.C. 5 C.U.A., Submission to the B r i t i s h Columbia Automobile Insurance Board on Accident Benefits, 1972, p. 6. ^Insurance Act, S.B.C. 1969, c. 11, s. 250O. 7 S t a t i s t i c s Canada, Canadian S t a t i s t i c a l Review, March 1972, p.. 5 0. 8 Income Tax Act, S.C. 1970-71, c. 63, s. 6 ( l ) f and s. 56 ( D a . -254-' BIBLIOGRAPHY Books and S t u d i e s 1. Blum, Walter and Kalven, Harry, Public Law Perspectives on a Private Law Problem - Auto Compensation Plans, L i t t l e , Brown & Co . , Toronto, 1965. 2. C a l a b r e s i , Guido, The Costs of Accidents, Y a l e U n i v e r s i t y P r e s s , New Haven, 1970. 3. C l a r k , D., and MacMahon, B., Preventive -Medicine, L i t t l e , Brown & Co., Toronto, 1967, i n c l u d e s Haddon, W i l l i a m , "The P r e v e n t i o n of A c c i d e n t s " , p. 597. 4. Conard, A. e t a l . , Automobile Accident Costs and Payments, U n i v e r s i t y of M i c h i g a n P r e s s , Ann Arbor, 1964, i n c l u d e s B e r s t e i n , H e r b e r t , "Reparations f o r T r a f f i c I n j u r i e s i n West Germany", p. 468. 5. Dale, R., The Role of the Drinking Driver in T r a f f i c Accidents, U n i v e r s i t y of I n d i a n a , E v a n s v i l l e , 1964. 6. Department of Transporfc.at.iou S t u d i e s on Automobile Insurance and Compensation, U.S.A., 19 70: a) Comparative Studies in Automobile Accident Compensation. i ) H a r r i s , Donald, " A n a l y s i s of the B r i t i s h Auto A c c i d e n t Compensation System", p. 65. i i ) H e l l n e r , Jan, " A n a l y s i s of the Swedish Auto A c c i d e n t Compensation System", p. 115. i i i ) L i n den, A l l e n " A u t o m o b i l e Insurance Breakthrough i n Canada", p.. 149 , i v ) P f e n n i g s t o r f , Werner, " A n a l y s i s of the German Auto Com-pe n s a t i o n System", p. 33 and v) Tunc, Andre, " A n a l y s i s of the French Auto A c c i d e n t Compensation System", p. 1. -255--256-b) K l e i n , David and W a l l e r , J u l i a n , Causation,Culpability and Deterrence in Highway Crashes, c) Public Attitudes Toward Auto Insurance. 7. Haddon, W i l l i a m , Suchman, Edward, and K l e i n , David, Accident Research, Harper and Row, New York, 1964, i n c l u d e s : a) Campbell, B., "The E f f e c t s of D r i v e r Improvement A c t i o n s on D r i v i n g Behavior", P. 63 8, b) Haddon, W i l l i a m , and Bradess, V i c t o r i a , " A l c o h o l i n the S i n g l e V e h i c l e F a t a l A c c i d e n t " , p. 208. c) McMonagle, C a r l , "The E f f e c t of Roadside Fea t u r e s on T r a f f i c A c c i d e n t s " , p. 217 and d) Stonnex, Kenneth, "Roadside Design f o r S a f e t y " , p. 707. 8. Ison, T e r r e n c e , The Forensic Lottery, S t a p l e s P r e s s , London, 196 7. 9. Keeton, Robert, and O'Connell, J e f f r e y , Basic Protection for the T r a f f i c Victim, L i t t l e , Brown & Co. Toronto, 1965. 10. Linden, A l l e n , The Report of the Osgoode Hall Study on Compensation for Victims of Automobile Accidents, Ryerson P r e s s , Toronto, 1965. 11. Linden, A l l e n , Studies in Canadian Tort Law, B u t t e r w o r t h s , Toronto, 196 8, i n c l u d e s Wright, C e c i l , "The Adequacy of the Law of T o r t s " , p. 579. 12. Nader, Ralph, Unsafe at Any Speed, Grossman P u b l i s h e r s , New York, 1965. 13. Rokes, W i l l i s , No-Fault Insurance, I n s u r o r s P r e s s , Santa Monica, 1971. 14. World Book Encyclopedia, V o l . 1, F i e l d E n t e r p r i s e s E d u c a t i o n a l Corp. Chicago, 1958. 15. Wright, C e c i l , Cases on the Law of Torts, 4th ed., B u t t e r -worths, Toronto, 1967. -257-Submissions, Reports and S t a t i s t i c s 1. Automobile Insurance . . For Whose Benefit? A r e p o r t to Governor Nelson A. R o c k e f e l l e r , S t a t e of New York Insurance Dept., 1970. 2. Annual Report of the Superintendent of Insurance, 1971, Queen's P r i n t e r , B r i t i s h Columbia. 3. Annual Report of the Superintendent of Motor Vehicles, 1960-1970, Queen's P r i n t e r , B r i t i s h Columbia. 4. Annual Report of the Workmen's Compensation Board, 1970, Queen's P r i n t e r , B r i t i s h Columbia. 5. Canadian U n d e r w r i t e r s A s s o c i a t i o n , Submission to the B r i t i s h Columbia Automobile Insurance Board on Accident Benefits, 1972. 6. Canadian Underwriters A s s o c i a t i o n , Submission to the Province of Quebec Royal Commission on Automobile Insurance, 1972. 7. Dominion Bureau of S t a t i s t i c s ( S t a t i s t i c s Canada). a) Crime S t a t i s t i c s , 85-205, 1969. b) Motor Vehicle, 53-203, 1950. c) Motor Vehicle T r a f f i c Accidents, 53-206, 1960-70. d) Roads and Street Mileage, 53-201, 1965-1970. 8. Independent Insurance Conference, Submission to B r i t i s h Columbia Automobile Insurance Board on Accident Benefits, 1972. 9. Insurance Bureau of Canada, Submission to B r i t i s h Columbia Automobile Insurance Board on Accident Benefits, 1972. 10. Motor-Vehicle Accidents - S t a t i s t i c a l Summary,Jan.-Nov. 1971, Motor V e h i c l e s Branch, B r i t i s h Columbia. 11. Province of B r i t i s h Columbia Royal Commission on Automobile Insurance, Queen's P r i n t e r , V i c t o r i a , 1968. -258-12. The Saskatchewan Government Insurance O f f i c e , Submission to the B r i t i s h Columbia Royal Commission on Automobile Insurance, 1967. 13. The S t a t i s t i c a l Exhibit, Insurance Bureau of Canada, 1960-1970. 14. Supreme Court of B r i t i s h Columbia Cause Books, Vancouver Court R e g i s t r y , 1966-1972. A r t i c l e s and P e r i o d i c a l s 1. Ahlstrom, B e r t , "The F a u l t s i n No-Fault", (1971) 6 Land and Matter L.R. 771. 2. AIA Looks at New Insurance E r a ; No F a u l t Auto Case Gets S c r u t i n y ", National Underwriter, May 23,/1969. 3. AMA, Alcohol and the Impaired Driver, 1968. 4. A t i y a h , P. " B r i t i s h Columbia Royal Commission on Automobile Insurance", (1969) Modern L.R. 547. 5. Best's Weekly News Digest, Jan. 10, 1972. 6. C a l a b r e s i , Guido, "The New York P l a n : A Free Choice Mo- . d i f i c a t i o n " (1971) 71 Columbia L.R. 267. 7. "Change i n Insurance Law Seen a f t e r L i a b i l i t y R u l i n g " , p. 52, Vancouver Sun, Feb. 14, 1972. 8. Cromton R. " D r i v e r Behavior and L e g a l Sanctions- - A Study of Deterrence, (1969) 67 Michigan L.R. A l l . 9. F i n l a y , Gordon, "Canadian Comment", i n Best's Review, P r o p e r t y and L i a b i l i t y e d i t i o n , J u l y 1970, p. 47; March 1971, p. 60; June 1971, p. 68; and August 1971, p. 56. 10. F r a n k l i n , Marc, "Repla c i n g the Negligence L o t t e r y : Com-p e n s a t i o n and S e l e c t i v e Reimbursement,"(1967) 53 V i r g i n i a L.R. 114. -259-11. G h i a r d i , James, and K i r c h e r , John, "Automobile Insurance: An A n a l y s i s of the Massachusetts P l a n " , (1970) 21 Syracuse L.R. 1135. 12. Gowan, B r e l a n d , "Reforms f o r C a l i f o r n i a Automobile L i a b i l i t y Insurance", [1970] P a c i f i c L.J. 290. 13. Green, John, " A F i s h Out of W a t e r - C l a s s i c a l F a u l t on the Highway", (1970) 35 Sask. L.R. 2. 14. Ison, T e r r e n c e , "Highway A c c i d e n t s and the Demise of T o r t L i a b i l i t y " (1969), 47 Canadian Bar R. 304. 15. Keeton, Robert, and O'Connell, J e f f r e y , " A l t e r n a t i v e Paths Toward N o n f a u l t Automobile Insurance", (1971) 71 Columbia L.R. 241. 16. Lawton, Lawrence, " P s y c h o l o g i c a l Aspects of the F a u l t System as compared w i t h the No-Fault System of Automobile Insurance" (1971), 20 U. of Kansas L.R. 57. 17. L i t t l e , J . , "A Theory and E m p i r i c a l Study of What Deters D r i n k i n g D r i v e r s " (1970), 23 Administrative L.R. 23. 18. Maloney, Frank, and Rush/William, "The A c c i d e n t Prone D r i v e r : The Automotive Ages' B i g g e s t Unsolved Problem", (1961-62) 14 U. of F l o r i d a , L.R. 364. 19. M a r r y o t t , F r a n k l i n , " T e s t i n g the C r i t i c i s m s of the F a u l t Concept", (1968) 35 Insurance Counsel J.112. 20. McConnell, Bob, "Companies F i g h t Rate Cuts", p.23 Vancouver Province, Jan. 13, 1972. 21. McFarland, R., " P s y c h o l o g i c a l and B e h a v i o r a l Aspects of Automobile A c c i d e n t s " (1968) 12 T r a f f i c Research, R. 73. 22. Netherton, Ross, "Highway S a f e t y Under D i f f e r i n g Types of L i a b i l i t y L e g i s l a t i o n " , (1954) 15 Ohio St. L.J. 110. 23. "New Judge Sworn i n " , p. 8 Vancouver Sun, Feb. 17, 1972. 24. New Zealand Embassy, New Zealand News, V o l . 27, No. 1, Washington, D.C. 1972. 25. "No-Fault Car Insurance Cut", p. 1, Vancouver Sun, January 22, 1972. 260-26. "No-Fault Wins I t s Case", p. 76, Business Week, J u l y 31, 1971. 27. Palmer, G e o f f r e y , " A b o l i s h i n g the P e r s o n a l I n j u r y T o r t System: The New Zealand E x p e r i e n c e " , (1971) 9 Alberta L.R. 169. 28. Rokes, W i l l i s , "The Saskatchewan P l a n " (1962) 29 J. of Insurance 373. 29. Ryan, John, "Massachusetts T r i e s No-Fault", (1970), 57 A.B.A.J. 431. 30. Saskatchewan Government Insurance O f f i c e , Saskatchewan's Automobile Insurance Act Explained, 1965. 31. S e l z e r , Rogers, and Kern, " F a t a l A c c i d e n t s " The Role of Psychopathy, S o c i a l S t r e s s , and Acute D i s t u r b a n c e " , (1968) 124 American J. of Psychiatry, 1029. 32. Shumiatcher, M o r r i s , "State Compulsory Insurance Act - An A p p r a i s a l " , (1961), Canadian Bar R. 107. 33. Smith, W,, " D r i n k i n g and D r i v i n g " - (1960-61) 3 Criminal L.Q. 65. 34. T a r r a n t s , W i l l i a m , "Myths and M i s c o n c e p t i o n s i n T r a f f i c S a f e t y " , p. 52 Highway -Research News, S p r i n g 1968. 35. Thorpe, P h i l i p , "Compensation Reform, Accident' C o s t s , and T r a f f i c S a f e t y : Toward a U n i f i e d Motor T r a n s p o r t P o l i c y " (1971) 46 Indiana L.J. 301. 36. W e i l e r P a u l , "Groping Towards a Canadian Tort"Law: The Role of the Supreme Court of Canada", (1971) 21 U. of Toronto L.J. 267. -261-S t a t u t e s and Re g u l a t i o n s 1. Automobile Accident Insurance Act, S.S. 1946, c. 11; and R.S.S. 1965, c. 409. 2. B r i t i s h Columbia Regulations, 15/70; 41/71; 42/71; 43/71 and 151/71. 3. Canada Pension Plan, R.S.C. 1970, c. C-5. 4. Contributory Negligence Act, S.B.C. 1925, C. 8; R.S.B.C. 1960, c. 74; S.B.C. 1962, c. 15; and S.B.C. 1970, c. 9. 5. Criminal Code, R.S.C. 1970, c. C-34.. 6. Families' Compensation Act, R.S.B.C. 1960, C. 138. 7. F l o r i d a Automobile Reparations Reform Act, c. 71-252. 8. Highway T r a f f i c Act, R.S.M. 1970, c. C-60. 9. Highway T r a f f i c Act, R.S. 0. 1970, c. 202. 10. Hospital Insurance A.ct; R. S * B.C. 1960, c. 180. 11. Income Tax Act, S.C. 1970-71 c. 63 and Insurance Act, S.B. 1932, C.20; R.S.B.C. 1960, C-197; S.B.C. 1969, O i l ; S.B.C. 1970, C.44; and 1972 B i l l 78. 12. Insurance Act, S.O. 1971, c. 84. 13. Massachusetts General Annotated Laws, C. 90 and 231. 14. Medical Care Act, R.S.C. 1970, c. C-5. 15. Motor Vehicle Act, S.B.C. 1932; C. 37; S.B.C. '1937, C. 54; S.B.C. 1938, c. 42; S.B.C. 1941-42, C. 25; S.B.C. 1947, c. 62; S.B.C. 1959, c. 55; R.S.B.C. 1960, c. 253; S.B.C 1963 c. 27; S.B.C.1969, c. 20; and S.B.C. 1970, c. 28. 16. Motor Vehicle Act, S.N.S. 1970, C. 53. 17. Motor Vehicle Safety Act, S.C. 1969-70, c. 30. 18. Motor Vehicle Safety Act Regulations, C.S. O.R./ 70-487. 19. Saskatchewan Regulations, 72/71. 20 Workmen's Compensation Act, R.S.B.C. 1960, c. 59. -262-Cases 1. Baker vs Bolton (1808), 1 Camp. 493. 2. Benham vs Gambling, [1941] A.C. 157. 3. Blyth vs Birmingham Waterworks, (1856) 156 E.R. 1047. 4. Butter f i e l d vs Forrester (1809) 103 E.R. 926. 5. Case of Thorns (as r e p o r t e d i n Bessey vs O l l i o t & Lambert (1681), 83 E.R. 244). 6. Cowper vs Studer, [1951] S.C.R. 450. 7. Davies vs Mann, (1842) 152, E.R. 588. 8. Donaghue vs Stevenson, [1932] A.C. 562. 9. Hughes vs Lord Advocate, [1963] A.C. 837. 10. Interlake Tissue M i l l s Co. Ltd vs. Salmon and Beckett, [1949], D.L.R. 207. 11. MacDonald vs Deson and Deson, (1970)73 W.W.R.241. 12. McLure vs The General Accident Assurance Co. of Canada (1924-25), 35 B.C.R. 33. 13. Oliver vs Ashman, [1962] 2 Q.B. 210. 14. Queen vs Jennings et al., [1966] S.C.R. 532. 15. Scott vs London & St. Catherine Docks (1865), 159 E.R. 665. 16. Sigurdson vs B r i t i s h Columbia E l e c t r i c Rly Co. Ltd., [1953] A.C. 291. 17. Skelton vs C o l l i n s (1966), 39 A.L.J.R. 180. 18. Stennett vs Hancock & Peters,[1939] 2 A l l E.R. 578. 19. Temple vs Terrace Transfer Ltd. (1966), 57 D.L.R. (2rd) 631. 20. Wagon Mound, [1961] A.C. 388. 21. Winters vs B r i t i s h Columbia E l e c t r i c Rly. Co. Ltd. (1911) f 15 B.C. R. 81 22. Woolmington vs D.P.P., [1935] A.C. 462. -263-E x p e r t s who s u p p l i e d i n f o r m a t i o n and o p i n i o n 1. Mr. Jim A t t r i d g e , Manager of the Vancouver S a f e t y C o u n c i l , Vancouver, B.C. 2. Mr. J.P. Brown, E x e c u t i v e O f f i c e r , The Saskatchewan Govern-ment Insurance O f f i c e , Regina, Sask. 3. Mr. W.H. Day, S e c r e t a r y of the B r i t i s h Columbia Automobile Insurance Board, V i c t o r i a , B.C. 4. Dr. C h r i s t o p h H a e h l i n g Von Lanzenauer, P r o f e s s o r School of Business A d m i n i s t r a t i o n , U n i v e r s i t y of Western O n t a r i o , London, Ont. 5. Mr. Ian Henley, P r e s i d e n t of B.C. Claims Managers and member of Insurance Committees of B.C. Bar A s s o c i a t i o n , Claims Manager of Unigard Mutual Insurance Co., Vancouver, B.C. 6. Mr. Kenneth Malthouse, Manager o f I.B.C. f o r B.C. and D i r e c t o r of T.V.I.F., Vancouver, B.C. 7. Mr. H. M i d g l e y ', , I n s p e c t o r of Insurance, Dept. of the A t t o r n e y - G e n e r a l , Vancouver, B.C. 8. C o r p o r a l H a r r y < P e t r i e , Vancouver C i t y P o l i c e - T r a f f i c D i v i s i o n , Vancouver, B.C. 9. M r . G i l b e r t Schmitt, Law p a r t n e r i n f i r m of G u i l d , Y u l e , Schmitt, Lane, Hutcheon, & C o l l i e r , Vancouver, B.C. 10. Mr. A r t h u r Sharpe, A d m i n i s t r a t i v e O f f i c e r , D r i v e r L i c e n c e D i v i s i o n , Motor V e h i c l e Branch, V i c t o r i a , B.C. 11. Mr. A. Schwaia, S e n i o r U n d e r w r i t e r , Wesco Insurance Co., Vancouver, B.C. 12. Mr. C.L. Wilcken, Actuary of I.B.C., Toronto, Ont. 

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