Leena: Why has “no fualt” been introduced?

Response: No fault has been introduced in the Unted States in 13 of the states. However, the threshold of the no fualt is very low at present and is onl $500/- in some states. Also there is no state in the great nation that offer “pure” no fault insurance. The thirteen states that claim to have “no fualt” insurance im allow you to sue at some monetary or verbal threshold. These “modified” no fault plans are better but still leave a lot to be desired in order to accomplish the pure no fault.

Let me explain example, if you are in an accident and you state has a $2000 monetary threshold on you medical bills before you can obtain the right to sue. If you actual medical bills were $1750/-there is nothing stopping you from visiting the doctor again. You can order some more expensive tests and exceeding the limit, and than sue for thousands in pain and suffering. But remember that now some states allow you to sue for pain and suffering only if you are seriously injured.

The reason we need no fault:
1. quicker, more efficient payment of claims,
2. currently we receive around 13 cent of our premium dollar back on actual medical expenses and lost wages,
3. After an accident people can concentrate on rehabitalation and not pretend to be injured to get higher awards.
4. lower insurance rates,
5. less expense on lawyers,
6. no longer have to supplement for uninsured motorists and
7. stop insurance companies from overpaying small claims because of the threat of litigation .

I am sure now you have understood this a little better.

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