Government Employees Off Duty Auto Insurance Government Employee Off Duty
Auto Insurance
Personal Use of Government Vehicles
The Issue
Government Employees are often given permission from their supervisors to take government vehicles home at the end of the work day. So long as the driver does not deviate from their normal direct path home – the Government deems the vehicle as being used for its intended business purpose. But, when the operator uses the vehicle to run personal errands, then insurance protection offered by the government ceases. The financial consequences of any accidents become the sole responsibility of the operator.
If an operator deviates from their normal direct route home, say to stop at the grocery store, the driving associated with that activity is NOT COVERED by Government Insurance protection.
Scenario
While pulling away from the grocery store, the driver of the Government vehicle fails to see an oncoming pickup truck in the glare of the afternoon sun. There is a nasty collision and the driver of the Government vehicle is charged by the authorities for failure to yield to oncoming traffic.
As a consequence of the accident there is collision damage to the Government vehicle, the member driving it is shaken up and requires a short hospitalization and rehabilitation. The driver of the pickup truck is self employed and suffers career ending injuries.
Analysis
The driver of the Government Vehicle had deviated from their ordinary direct route home to conduct personal business. That portion of the trip therefore is excluded from benefits under Government Insurance Coverage. That driver is solely and personally liable for all injury and damage.
Personal Insurance Coverage for Government Vehicles
To cover this exposure, Wilson M. Beck Insurance Services Inc. has negotiated a special insurance program for ROYAL CANADIAN MOUNTED POLICE members.
It is underwritten by The Royal & SunAlliance Insurance Company of Canada.
What we offer
This unique insurance program does the following:
Policy Anniversary: 1 April of each year
Insured Activity: The operator’s use of government vehicles except when they are used on Government business. (When used on Government business – the Government Insurance Plan takes over)
Insured Liability: $2,000,000 in respect of Third Party Bodily Injury or Property Damage
Accident Benefits: Third Party Accident Benefits (defined in the policy) up to $150,000
Physical Damage: Physical damage coverage to government vehicles up to $55,000 (increased by endorsement upon request by vehicle operator)
Deductibles: $500 Physical Damage $250 Comprehensive
Premium: $120 per annum + $10 policy fee = $130
Premium is pro-rated in relation to months in effect.
Q & A
Q: Since the policy has an anniversary date of April, how much do I pay if I sign up in on June 1?
A: There are 10 months coverage remaining – so you pay 10/12 of the annual premium – plus the policy fee.
Q: Who decides whether an accident is covered under this policy or the Government insurance plan?
A: Your supervisor does. If the loss is deemed by them to have arisen from the personal use of the automobile – you can then report the matter to us and we’ll help you claim against your policy.
Q: I am directly enroute to the office when some one rear ends my vehicle in slow moving traffic?
A: The vehicle is being used on Government business – i.e. going directly to the office so this is a matter to be handled by the Government Insurance plan. Just report it to your supervisor. (**Follow customary procedures following an accent. Ensure injured people are attended to. Record particulars of the driver and any passengers; the make, model, year and license of the vehicle, their insurance particulars. Cooperate with local authorities)
Q: The vehicle is parked outside a member’s home. During a heavy windstorm, a tree branch falls through the windshield and damages the exterior and interior of the vehicle. Whose insurance responds?
A: In that case, it would be the Government Insurance.
Q: I took the car to the flea market on Saturday morning and someone did a hit-and-run job to the right front fender and grill. Who pay’s for that?
A: That falls under the special coverage provided by our policy. The vehicle was being used on personal business.
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