Senate Bill 8-157, otherwise known as the Motor Vehicle Insurance Act of 2010, which was introduced by Senator Hokkons Baules, passed on first reading on Tuesday.
“The bill once it becomes a law will make it mandatory for motor vehicle owners to insure their vehicles,” Baules said.
Currently, owners of motor vehicles in Palau are not required to, and generally do not, carry motor vehicle insurance.
The bill states that every owner of a motor vehicle shall be required to obtain and maintain motor vehicle insurance for every motor vehicle owned before a motor vehicle may be used on public roads or highways by the motor vehicle owner.
The bill notes that the general failure of the people to carry motor vehicle insurance has led to the financial brunt of a traffic accident to be borne by the victims of a traffic accident due to the inability of most persons at fault to pay for the legal damages resulting from the accident.
“The bill for legal damages typically runs in the thousands of dollars, and those at fault during accidents are usually unable to pay such a huge amount. In such cases, the victims are the ones footing the bill. This measure was designed to remedy such situations, “Baules stressed.
The bill further states that an owner’s policy of motor vehicle liability insurance shall insure the named insured and any other person using any motor vehicle registered to the named insured with the express or implied permission of the named insured against the loss from the liability imposed by law for damages arising out of ownership, maintenance, or use of the motor vehicle within Palau to the extent and aggregate amount, exclusive of interest and costs, with respect to each motor vehicle of $15, 000 for bodily injury or death of each person as a result of any one accident, and subject to the limit as to one person, the amount of $30,000 for bodily injury to or death of all persons as a result of any one accident and the amount of $5,000 for damage to property of others as a result of any one accident.
Baules disclosed that failure to insure one’s vehicle carries with it corresponding penalties.
The bill provides that any owner of a motor vehicle who fails to provide proof of motor vehicle registration to a police officer upon request, or any persons a motor vehicle owner is involved in a traffic accident, shall be subject to a fine of $ 250.
“Besides, your car will not be registered as insurance will be a prerequisite to registering one’s vehicle. You must show a proof of insurance, otherwise, the police will not register your vehicle,” the senator pointed out.
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