The Car and Truck Fleet and Leasing Management Magazine

Vicarious Liability Reform Bill Introduced in British Columbia

May 10, 2007

ALEXANDRIA, VA – TRALA-requested legislation aimed at limiting vicarious liability exposure for owners of rented and leased vehicles in British Columbia was introduced and read for the first time Apr. 26. The provision, included in Bill 35, the Miscellaneous Statutes Amendment Act, would cap owner vicarious liability at $1 million. Vicarious liability would be capped for owners of vehicles under either short-term rental or long-term lease agreements of either a commercial or consumer nature. TRALA is continuing to work with the BC government to clarify the bill’s impact on both the lessee and lessor relative to insurance primacy. TRALA is pushing for a solution similar to last year’s successful effort in Ontario that makes the lessee’s policy primary. Under this Ontario law, the lessor is vicariously liable only for the difference between the lessee’s coverage and the $1 million cap in place in the province. TRALA joined an international coalition of organizations and companies involved in vehicle renting and leasing in seeking vicarious liability reform in British Columbia. TRALA and the coalition lobbying for the BC Legislative Assembly to complete action on vicarious liability reform before the end of the current session on May 31.
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