Governor Jeff Landry is receiving criticism for vetoing a bill that many say is a critical piece in the state’s effort to reduce auto insurance rates. Landry says the legislation would have limited the monetary judgement a victim receives in an accident if their case goes to trial.
“The Collateral Source Doctrine is a principal in tort law that insures the insured victims receive full compensation for damages regardless of any third party payments like those people have in health insurance.”
Landry says the Collateral Source doctrine protects those who have obtained health insurance and receive benefits. Landry believes this bill would take away and give the benefits to the uninsured.
“The doctrine aims to protect the working class by preventing liable parties from reducing their payment responsibilities based on the injured insurance coverage,” Landry said.
Norco Senator Greg Miller says he’s disappointed but believes Landry wants to be fair to everybody and plans to author legislation once a compromise has been reached.
“Compromise is going to be between the people who are pushing the collateral source legislation that the governor vetoed versus the other side that doesn’t want any changes. They didn’t want any changes four years ago.”
CEO of the Louisiana Association of Business and Industry Will Green says a key part of the auto insurance reform package was the Collateral Source bill and Landry’s veto is incredibly disappointing and feels his reasoning was flawed.
“Insurance by its nature is to indemnify you for your actual damages. Its not to bring you more to where you were before, its to bring you back and to make you whole.”
The legislation received strong bipartisan support in the recently completed regular legislative session.
Insurance Commissioner Tim Temple is calling for a special session on legal reform. He says it’s critical the state makes changes to its collateral source rule in order to create a more competitive market.
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