Truck Renting and Leasing Association Seeks Vicarious Liability Reform

Truck Renting and Leasing Association (TRALA) is working with an international coalition to reform unlimited vicarious liability laws in British Columbia, Canada.

The association is asking for legislation that would either eliminate vicarious liability or cap liability with a solution similar to the reform passed in Ontario in 2006.

In Ontario, vicarious liability was capped at $1 million, and the primacy of coverage laws were changed to make the owner of a rented or leased vehicle’s insurance secondary to third-party and vehicle operator policies.

Currently in BC, owners of rented and leased vehicles can be subject to unlimited liability without fault. This liability is based solely on the ownership of the vehicle involved in an accident, even if there is no allegation of wrong-doing or negligence on the part of the renting and leasing company.

This new law would apply to cars and trucks leased or rented under either commercial or consumer agreements.

For more information on this effort, visit TRALA’s Web site.

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