HLS 10RS-1279 ORIGINAL
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are additions.
Regular Session, 2010
HOUSE BILL NO. 1008
BY REPRESENTATIVE HARRISON
INSURANCE/AUTOMOBILE: Provides relative to compensating an owner of a vehicle
for the depreciation in the value of that vehicle after it has been repaired
AN ACT1
To amend and reenact R.S. 22:1892(B)(4), relative to property and casualty insurance claims2
payment; to provide for compensation for the diminution in the value of a vehicle3
that has been repaired after an accident; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 22:1892(B)(4) is hereby amended and reenacted to read as follows:6
ยง1892. Payment and adjustment of claims, policies other than life and health and7
accident; personal vehicle damage claims; extension of time to respond to8
claims during emergency or disaster; penalties; arson-related claims9
suspension10
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B.12
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(4)(a) Whenever a property damage claim is on a personal vehicle owned by14
the third party third-party claimant and as a direct consequence of the inactions of15
the insurer and the third party third-party claimant's loss the third party third-party16
claimant is deprived of use of the personal vehicle for more than five working days,17
excluding Saturdays, Sundays, and holidays, the insurer responsible for payment of18
the claim shall pay, to the extent legally responsible, for reasonable expenses19
incurred by the third party third-party claimant in obtaining alternative transportation20 HLS 10RS-1279 ORIGINAL
HB NO. 1008
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for the entire period of time during which the third party third-party claimant is1
without the use of his personal vehicle. Failure to make such payment within thirty2
days after receipt of adequate written proof and demand therefor, when such failure3
is found to be arbitrary, capricious, or without probable cause shall subject the4
insurer to, in addition to the amount of such reasonable expenses incurred, a5
reasonable penalty not to exceed ten percent of such reasonable expenses or one6
thousand dollars, whichever is greater together, with reasonable attorneys attorney7
fees for the collection of such expenses.8
(b) Whenever a motor vehicle is damaged through the negligence of an9
insured party without being destroyed, and is repaired, and its fair market value after10
repair is less than its value before it was damaged, the owner of the damaged vehicle11
shall be entitled to recover compensation, from the insurer or insured, for both the12
cost of repair and an amount representing the diminution in the value of the vehicle.13
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Harrison HB No. 1008
Abstract: Provides for compensation of the owner of a damaged vehicle that depreciated
as the result of an insured party.
Present law provides that whenever a property damage claim is on a personal vehicle owned
by the third-party claimant and as a direct consequence of the inactions of the insurer and
the third-party claimant's loss the third-party claimant is deprived of use of the personal
vehicle for more than five working days, excluding Saturdays, Sundays, and holidays, the
insurer responsible for payment of the claim shall pay reasonable expenses incurred by the
third-party claimant in obtaining alternative transportation for the entire period of time
during which the third-party claimant is without the use of his personal vehicle. Further,
provides that the failure to make such payment within 30 days after receipt of adequate
written proof and demand therefor, when such failure is found to be arbitrary, capricious, or
without probable cause shall subject the insurer to a reasonable penalty not to exceed 10%
of such reasonable expenses or $1,000 whichever is greater together with reasonable
attorney fees for the collection of such expenses.
Proposed law retains present law and adds a provision that provides that when a motor
vehicle is damaged through the negligence of an insured without the vehicle being a total
loss, and the vehicle is repaired, and its fair market value after such repair is less than its
value before it was damaged, the owner of the damaged vehicle is entitled to recover HLS 10RS-1279 ORIGINAL
HB NO. 1008
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are additions.
compensation, from the insurer or insured, for both the cost of the repair and an amount
representing the diminution in the value of the vehicle.
(Amends R.S. 22:1892(B)(4))