Illinois Congressman renews fight to bring trucking industry liability coverage minimums into the 21st Century
When there is a serious semi-truck crash here in Indiana or Illinois, the accident victims are likely to suffer severe bodily injuries resulting in death or permanent and catastrophic harm. Truck accidents usually have tragic and heartbreaking results. In advocating for those victims and their loved ones in the aftermath, it is vital to make sure that all potential insurance coverage is met with claims for damages resulting from the crash.
These damages can include many things, from the emergency medical care at the scene, to long-term therapy needs, lost wages, pain and suffering, and other harm experienced not only by the victims in the wreck but those loved ones (spouse, children) who likely have suffered because of the victim’s incapacity or death.
However, insurance policies are merely contracts. They are products sold by insurance companies for a fee (the premium). The amount of insurance coverage available to victims after a serious truck accident will depend upon management decisions made much earlier insofar as the amount of money to be spent in paying for these liability policies. The trucking company is free to buy only the legal minimum amount of coverage.
What is Commercial Truck Insurance that Protects Semi-Truck Crash Victims?
Fortunately, both federal and state laws have been passed to protect victims of commercial truck accidents (semi-trucks, big rigs, 18 wheelers, tractor trailers, hazmat haulers, etc.) by requiring the commercial vehicle be covered by liability insurance. Different factors come into play for how much the policy must provide in coverage. The weight of the truck is one consideration. The type of cargo it will carry is another, with the highest insurance coverage being required for semi-trucks that are hauling hazardous materials.
The insurance policy itself may provide a single limit as maximum coverage under the policy, or it may be broken down into different types of coverage. These are (1) bodily injury per person; (2) bodily injury per accident; and (3) property damage.
Right now, both state law and federal law does require liability coverage with legal minimums. However, those minimums have not kept up with the victim’s needs. Many argue that the legal liability coverage minimums are long overdue for an increase.
Legal Minimums in Liability Coverage for Semi-Truck Accidents
In 1979, a report was published by the National Transportation Policy Study Commission (NTPSC), a group of Congressmen, Senators, and members of the public appointed by the President to study the needs of the public regarding serious commercial vehicle accidents. Over 40 years ago, the NTPSC recommended an increase in liability minimums.
The 1979 NTPSC Report includes the following statement:
“As an example, all certificated motor carriers operating upon the highways should be obligated to carry adequate insurance (or proof of financial responsibility equal to such insurance) to protect the public. The insurance should cover public liability, property, damage, cargo and environmental restoration with a $1 million for single occurrence, or another minimum amount sufficient to require periodic ‘on site’ inspection by the insurance company, with the minimum to be updated regularly. Non-certificated motor carriers should be subject to similar standards.”
There was no increase in mandatory liability minimums after the publication of this report.
Proposed Law: Required Amount of Insurance Needed by Commercial Motor Vehicles per Event (INSURANCE) Act of 2019
In 2019, there was an unsuccessful attempt to increase the minimum liability coverage amounts for commercial vehicle policies, proposed as in HB 3781. It was entitled the “Required Amount of Insurance Needed by Commercial Motor Vehicles per Event (INSURANCE) Act of 2019.” (“INSURANCE Act.”) The 1979 NTPSC report, with its proposal, was a critical part of this proposed legislation.
From HB 3781 comes the following information as Congressional findings:
(1) In passing the Motor Carrier Act of 1980, Public Law 96–296, Congress intended for the minimum insurance levels to maintain safety. According to the House Report No. 96–1069, “the action of the Committee in increasing financial responsibility is to encourage the carriers to engage in practices and procedures that will enhance the safety of their equipment so as to afford the best protection to the public.”.…
(3) According to the U.S. Bureau of Labor Statistics, the amount of $750,000, set in 1980 (the year of enactment), would have the same purchasing power as $4,923,153.29 in 2019, if the amount was raised to account for medical-cost inflation.
April 2021: Illinois Congressman Announces Re-Introduction of Legislation to Increase Insurance Liability Coverage in Truck Accidents
On April 15, 2021, Congressman Jesús “Chuy” García (IL-04) issued a news release that he will be re-introducing the INSURANCE ACT again this year. If passed into federal law, it will require periodic adjustments for motor carriers’ liability coverage that recognizes the inflation rate of medical costs.
This is in response to the fact that 1980 minimum insurance requirements for motor carriers have never been adjusted for inflation. Right now, the trucking company is able to meet federal legal requirements by paying minimum liability coverage as it was defined over 40 years ago.
“Families should not be saddled with long term-financial debt after dealing with the devastating injury or loss of a loved one. Still, thousands of families suffer in silence, burdened with insurmountable medical care costs after falling victim to catastrophic crashes with trucks. The INSURANCE Act will reduce these undue burdens by increasing the minimum insurance requirement for trucks, which has gone unchanged for over 40 years.”
Widespread Safety Advocates Support of Proposed Liability Increase Legislation
The legislation is supported by many who fight for the safety of truckers, their passengers, and those who share the roads with these commercial vehicles, including the Truck Safety Coalition; Citizens for Reliable and Safe Highways (CRASH); Parents Against Tired Truckers (PATT); Institute for Safer Trucking; the American Association for Justice; and Road Safe America.
From Joan Claybrook, co-founder of Citizens for Reliable and Safe Highways (CRASH) and former Administrator of the National Highway Traffic Safety Administration (emphasis added):
“Despite bogus arguments by trucking industry opponents, this bill is about grieving families and not enriching lawyers. Increasing the minimum insurance requirement, set in 1980, is necessary and supported by studies including a report by the U.S. Department of Transportation. No family should have to suffer economic hardship caused by a truck crash and industry lobbying to retain an out-of-date and obsolete federal limit.”
From Steve Owings of Road Safe America:
“It is high time that lawmakers address the reality that medical costs in 2021 are substantially higher than they were back in 1980, when the minimum levels of insurance were set. Too many families, like mine, pay the ultimate price in truck crashes – losing loved ones. Increasing the insurance minimums will help prevent unsafe trucking companies from getting on our roads, which will help keep other families from having to endure what families like mine do every single day.”
Compensation for Victims After a Catastrophic or Fatal Truck Crash in Indiana and Illinois
Anyone entering into the trucking business for profit must understand the risks that come with this type of operation. Truck accidents are usually serious and often involve fatalities. It must be a part of the business plan of any trucking operation or motor carrier to include for the possibility and likelihood of a crash that is caused by actions or inactions of the driver and/or the company itself.
Negligence claims are the responsibility of those who caused the crash and failed in their duty of care and safety. This is why there is the opportunity to purchase insurance coverage to cover that risk. Often, in severe truck crashes there may be more than one liability insurance policy that applies to the incident.
For more on truck crashes, read:
- Nuclear Verdicts in Fatal Semi-Truck Crashes
- Pending Trucking Legislation Before 2021 Indiana Statehouse and the Danger of Fatal Truck Crashes with Faster, Heavier Rigs on our Roads
- Danger of More Fatal Truck Crashes Caused by New 2020 Hours-Of-Service Rules
- Truck Driver Drug Use in Indiana and Illinois: High Risk of a Fatal Truck Crash Caused by Impaired Trucker
- Inadequate Truck Driver Training and Fatal Truck Crashes in Indiana or Illinois
It is shocking to consider that the trucking industry has succeeded in avoiding having any legal minimum increase in their liability coverage since 1980. The accident victims and their loved ones in this country, especially those who drive our roads at such high risk of a truck crash in the Crossroads of America, deserve better. Please be careful out there!
