Question

In: Finance

Many drivers operate vehicles either without insurance or with very low liability insurance limits. They often...

Many drivers operate vehicles either without insurance or with very low liability insurance limits. They often are in no position to pay for the damage they cause. Is this fair and should society take any action in this area?

Solutions

Expert Solution

It is true that many drivers drive without any insurance and then they cause damage which they are unable to pay off. This either causes damage to the society, or if the driver undertakes the responsibility to pay off, he is pushed into debt load.

It should be made mandatory to have adequate insurance cover before any licenses are issued. This might seem like a burden initially but in the event of casualty this could act as a major buffer for the driver and also for the society. Even the agrieved parties could benefit from such a regulation.

Society needs to take this action as soon as possible, as insurance would very much help in providing justice to the needy.


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