PIP and OBI

    Posted by MAIA on Apr 17, 2019 12:01:00 AM

    QUESTION

    This question was answered based upon current rules, regulations & statutes in effect on April 08, 2019

    Passengers are covered under PIP and then optional bodily injury on an auto policy, correct?

    ANSWER

    Irene Morrill:  Passengers are covered under PIP when in a MA motor vehicle:

    We will pay PIP benefits to or for:

    1. You, or any other person, if injured while occupying your auto with your consent.

    They are not “covered” under OBI …but they certainly can sue if they are injured by either the “you” of the policy or the permissive user and OBI will defend the driver and payout if the driver and/or owner is considered negligent.

    2008 MAP

    Part 5.                      Under this Part, we will pay damages to people injured or killed in 
    Optional Bodily     accidents if you or a household member is legally responsible for
    Injury to Others     the accident. We will also pay damages if someone else using your
                                      auto with your consent is legally responsible for the accident. 
                                      The damages we will pay are the amounts the injured person is entitled
                                      to collect for bodily injury through a court judgment or settlement

    2016 MAP

    Part 5.                       Under this Part, we will pay damages to people injured or killed in an accident
    Optional Bodily      if you or a household member is legally responsible for the accident and such
    Injury To Others.     accident arises out of the ownership, maintenance, or use of an auto by you or
                                       the household member. We will also pay damages if someone else using
                                       your auto with your consent is legally responsible for the accident. The damages
                                       we will pay are the amounts the injured person is entitled to collect for bodily
                                       injury through a court judgment or settlement. We will not pay punitive or exemplary
                                       damages.

    This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Massachusetts Association of Insurance Agents, Number One Insurance Agency nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

    Topics: 2018

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