How do Civil Liability for Vehicles and Civil Liability for Parked Vehicles coverage work?
Hello!
This month we are putting together a jigsaw puzzle with liability pieces and showing through examples how each additional Civil Liability coverage is important so that your risk is 100% covered.
This week, continuing the Civil Liability Month here at #MondayBlog, we will bring another couple of coverages. And this time, civil liability will be directly linked to the use and/or presence of land vehicles, both in its audiovisual production and in an event.
The current coverages are: Civil Liability for Land Vehicles in Service to Production (RCVT) and Civil Liability for Parked Vehicles.
CIVIL LIABILITY FOR LAND VEHICLES IN SERVICE OF PRODUCTION
What is CLLV coverage?
We believe that the word vehicle has given a hint of the way in which this coverage is applied. Yes, the coverage has to do with accidents caused by vehicles that are circulating at the service of your production.
It is activated if you are legally responsible for involuntary material and/or bodily damages caused to third parties, resulting from accidents related to the circulation of production land vehicles.
These vehicles can either be owned by the insured, or by third parties expressly bound by contract to provide exclusive transport service for members, cast and equipment of the insured production.
If the producer's vehicle runs over someone, for example, causing bodily harm, the coverage will only be activated after the full use of the mandatory DPVAT (Personal Injury Caused by Motor Vehicles) coverages.
Case Study
This is a true story, which will be modified slightly for the purposes of protecting those involved. What happened was that the production vehicle was in transit to the filming location, and there was a traffic jam at the location. The driver of the vehicle thought that there was something strange with the van and took advantage of the fact that the cars were stopped to go down and check the vehicle. Only he forgot to check the movement around him before opening his door, and because of that momentary failure, a passing motorbike collided with the open door.
The biker was badly injured and the driver promptly called the SAMU. The service was provided, but shortly afterwards the letter with the process arrived due to the bodily and material damage suffered by the third party, which in this case was the motorcycle rider.
How is the Liability coverage triggered in this case?
First of all, no getting out of the car without checking all sides, okay? And go to the side of the road. Even standing still you can be involved in an accident, as demonstrated in this situation.
The coverage is activated when you inform your insurer of the receipt of the legal document, that is, the process.
Thereafter, the analysis process is basically the same for all claims. Verification of your policy, request for documents and also confirmation of your GUILT on DAMAGE.
What would the regulation look like?
This process was due to the fact that the motorcycle rider, due to the accident, had consequences and was prevented from working because his motorcycle was also damaged.
We helped the insured with the issue of using DPVAT and after the amount exceeded, audiovisual production insurance was used with the CLLV cover.
As the car was a production car, with an employee at the wheel, in transit to the film set, carrying cinematographic equipment, there was no doubt that the cover triggered would be the CLLV.
Given the fact that it was an accident and that the accident occurred due to an act of responsibility by the producer, there was also compensation for material damage, related to the repair of the motorcycle.
There was no need to prolong the matter and everything was resolved by court agreement.
CIVIL LIABILITY FOR PARKED VEHICLES
What is PV Liability coverage?
If you read Parking and thought of garage, you got it right again, dear reader.
This coverage is not contractable in the audiovisual insurance product, but exists in the event insurance, and it is directly linked to the place where spectators leave their vehicles to go to attend the show, lecture, or any other type of insured event.
There are large events such as festivals, in which the Insured is responsible for guarding the vehicle of its public, and it is in this situation that this coverage is both applicable and actionable.
The coverage is actionable in the event of involuntary material damage caused to third-party vehicles under the care of the Insured, on the premises of the insured event.
For the coverage to be valid, however, the Insured is required to have effective control of the entry and exit of vehicles, that is, delivery and collection of parking tickets, which serve as proof in the event of an accident. As well as ensuring that the parking lot is a fenced and/or walled place with permanent surveillance.
And, in the case of parking with valet service, the insured must hire a reputable company with qualified drivers to drive the vehicles.
Case Study
Let's go to another real case. At a rodeo, there was valet service, so one of the event participants left his car with the valet and went to enjoy the event. On his return, to his dismay no one found his car. The ticket was never delivered and he didn't think to ask before leaving.
What no one knew was that a little earlier, one of the valets had been alone in the parking lot and had tried to steal this car, and in that attempt ended up bumping into other vehicles that were parked there.
How do we find out about this? Security cameras installed on site.
Can you imagine the confusion it was when another event participant arrived and received his damaged car?
To make a long story short, there were three vehicles involved in total, all with breakdowns and an attempted theft.
How is coverage triggered in this case?
In this situation, the police were called, the car that had disappeared was found, and all the owners of the vehicles got together and processed the production of the event.
The insurance company was informed of the situation and verified everything that had happened with the help of recorded images.
An important part of the Parked Vehicle Liabilty is that illegal acts of the people that the insured places to take care of the vehicles are covered. So the whole situation was resolved thanks to the policyholder's care in installing the cameras. Otherwise, it could have been left without coverage, as the valets were not handing over parking tickets, as required by this Liability coverage.
How was the regulation?
After confirming that the three cars involved belonged to the event's participants, and that there was unlawful action by the parking team, all damages to the vehicles were paid by the insured and reimbursed by the insurer.
And the insurer, in turn, demanded the indemnified amount from the valet park company, using its right of subrogation.
But then you ask me, but what was the fault of the producer if another company was the one who hired people of bad character? The fault was precisely in not having verified who would take care of the participants. Since the insured is with the vehicle of third parties in his possession and custody, any damage that occurs is that insured's responsibility. That's why coverage is actionable and that's why coverage exists. To help the insured with this expense in case such a problem occurs.
Have you seen how multi-risk insurance has to think of all angles of a filming and/or event with the express objective of offering financial protection in 100% of the possible situations?
It is for this reason that the analysis of the type of production together with the insured is a job that Prospecto likes to carry out.
Studying case by case, we avoid contracting unnecessary coverage and adjust values for your real risk.
This is our specialty and our passion, to help you get the right insurance, in a consultative and truthful way.
Next week we are reaching the end of November and also the end of our Liability Month here at #MondayBlog, and to end this month with a flourish we decided to talk about a coverage that leaves a lot of doubt in the minds of our policyholders.
We are waiting for you here next Monday where we will together unveil the Cross Liability coverage.
Don't miss it!
Have a great week, lovers!
Prospecto Seguros
Learn more:
Audiovisual Production
Errors and Omissions
Equipments
Drones
Life and Personal Accidents