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Risk Decisions |
Looking Ahead at Internet Trends and Your Money Opportunities |
Risk
Decisions Using Critical Incident Management Techniques for Your Daily Risking Solutions that Makes Future Sense! |
Managing the Risks in Auto Insurance & Extra-Jurisdictional Driving |
Many investors often overlook the serious risks that may result when
traveling by automobile in certain jurisdictions due to local law. For example, an investor may have terrific auto insurance (both first and third
party) in their home jurisdiction, however, that insurance may be of little or no utility in certain other jurisdictions. Also, the local jurisdiction
may have certain legislated limits on your ability to advance a claim for compensation arising from an accident. In the Canadian Provinces of Quebec and Manitoba, for instance, an innocent victim of a motor vehicle accident is denied access to the Court (the right to sue has been abolished) to claim compensation for injuries due to the negligence of an at-fault driver. These jurisdictions have pure No-Fault systems whereby an innocent victim is permitted to only receive certain prescribed benefits within defined limits. These Pure No-Fault jurisdictions cap recovery for financial losses based on a certain percentage of net (after tax) income to a certain maximum amount. Therefore, if you are a high wage earner (i.e., above the prescribed maximum) or in a situation where you have been temporarily under-employed, unemployed or you have not yet reached your future earning potential and you suffer a permanent injury that disables you from future employment, you will be forever capped at a benefit amount that is based on your taxable income in the 12 months prior to the accident. No recourse to the Court and your future benefit is forever fixed (subject only to cost of living). These 2 jurisdictions also deny innocent victims damages for pain and suffering. Instead permanent impairment meat charts are used for the purposes of determining a prescribed benefit for a particular injury. For example, if a concert pianist loses the use of his or her hand, the pianist would be granted a benefit in the same amount as would be awarded to an unemployed criminal. These impairment benefits are only available if a permanent injury is sustained and the maximum available (for catastrophic loss, e.g. spinal cord injury) is $60,000 (US$). Thus, the loss of a hand may result in a benefit of 30% of the maximum or $18,000 (US$). In summary, before embarking on a travel holiday, investigate the jurisdictions you may enter or cross. In the event that you suffer a serious accident in certain jurisdictions, you or your family's financial future may seriously be at risk. Risk Management is essential (even while planning holidays) and should not be overlooked. Charles von Ryan for FUTURECents.com Back Home |