The Car and Truck Fleet and Leasing Management Magazine

TRALA Seeking Vicarious Liability Reform in British Columbia

April 16, 2007

ALEXANDRIA, VA – TRALA and its Industry Council for Vehicle Renting and Leasing are working with an international coalition to seek the introduction of legislation that would reform unlimited vicarious liability laws in British Columbia, Canada.

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

TRALA is asking British Columbia Minister of Transportation and Solicitor Gen. John Les to introduce legislation that would either eliminate vicarious liability or cap liability with a solution similar to the TRALA-sought 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. TRALA has asked that this new law apply to both cars and trucks leased or rented under either commercial or consumer agreements.

TRALA and Industry Council members own more than 3,000 trucks operating in British Columbia under commercial lease or rental agreements, and more than 17,500 cars and trucks available for rent to the general public.

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