NO PAY‑NO PLAY
We are routinely asked what No Pay‑No Play means in the context of an auto accident claim. Simply put it means that a party involved in an auto accident who does not carry the statutory mandated coverages($15,000/$30,000/$25,000) forfeits the right to compensation for the first $15/000 of personal injury and $25,000 of property damage.
Louisiana law (LSA‑R.S. 32:866) requires that liability insurance be carried on all vehicles operated in this state. The intent of the Legislature in passing this law was to give added incentive to vehicle owners to obey the law and carry the required insurance. It was thought that the penalty of forfeiting the first $15,000 of personal injury and $25,000 property coverage would bring more owners into compliance with the law. This is perhaps why it was named The Omnibus Premium Reduction Act of 1997. Whether this lofty goal has succeeded or not is open to debate. Whether premiums have gone down or not we leave you to determine. What it has done however is offer a windfall in such cases to the insurance industry.
In an ordinary accident scenario the party at fault through his or her insurance carrier pays the damages to the party not at fault. In a No Pay‑No Play situation the insurance company gets to keep its money which it would have had to pay out had the Defendant been insured. This is a good deal for the insurance company without a doubt.
As in most of the law, there are exceptions. If the party causing the accident is convicted or pleads nolo contendere to DUI, intentionally causes the accident, flees the accident scene, or is engaged in a felony offense, then No Pay‑No Play does not apply, This does not prevent a passenger from asserting a claim unless the passenger is also an owner (like a husband and wife).
The bottom line is you must carry the required insurance and certainly Uninsured/Underinsured coverage as well. Don't be a victim twice. If someone causes you damages in an auto accident you have your own coverage to rely upon in the event they are uninsured or do not have enough insurance to cover your damages. We recommend limits of 100/300 for Uninsured/Underinsured coverage as well as Medical Payments Coverage with limits of at least $25,000.00.
COLLATERAL SOURCE RULE CASES:
Hoffman v. 21st Century:
Collateral source rule promoted tort deterrence and accident prevention.
Cutsinger v. Redfern:
uninsured motorists carrier is allowed to reduce its payments to plaintiff by the amount of workers compensation benefits received.
Bozeman v. State:
Under the collateral source rule, plaintiffs damages did not include the amount that health care providers wrote off when accepting medicaid payment in full
Specializing in Auto Accident, Personal Injury, Legal Malpractice, Criminal and Family Law cases in the Greater New Orleans area.
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Wimberly Law Firm