HLS 10RS-1279 ENGROSSED
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 1008
BY REPRESENTATIVE HARRISON
INSURANCE/AUTOMOBILE: Provides relative to the determination of liability for the
diminution in the value of a damaged vehicle
AN ACT1
To enact R.S. 9:2800.17, relative to property and casualty insurance claims payment; to2
provide for damages for the diminution in the value of a motor vehicle after an3
accident; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 9:2800.17 is hereby enacted to read as follows: 6
ยง2800.17. Liability for the diminution in the value of a damaged vehicle7
Whenever a motor vehicle is damaged through the negligence of a third-party8
without being destroyed, and if the owner can prove by a preponderance of the9
evidence that, if the vehicle were repaired to its preloss condition, its fair market10
value would be less than its value before it was damaged, the owner of the damaged11
vehicle shall be entitled to recover as additional damages an amount equal to the12
diminution in the value of the vehicle. Notwithstanding, the total damages recovered13
by the owner shall not exceed the fair market value of the vehicle prior to when it14
was damaged, and the amount paid for the diminution of value shall be considered15
in determining whether a vehicle is a total loss pursuant to R.S. 32:702.16 HLS 10RS-1279 ENGROSSED
HB NO. 1008
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
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 the determination of liability for the diminution in the value of a
damaged vehicle.
Proposed law adds a provision that provides that whenever a motor vehicle is damaged
through the negligence of a third-party without being destroyed, and if the owner can prove
by a preponderance of the evidence that, if the vehicle were repaired to its preloss condition,
its fair market value would be less than its value before it was damaged, the owner of the
damaged vehicle is entitled to recover as additional damages an amount equal to the
diminution in the value of the vehicle. Notwithstanding, the total damages recovered by the
owner cannot exceed the fair marker value of the vehicle prior to when it was damaged, and
the amount paid for the diminution of value must be considered in determining whether a
vehicle is a total loss pursuant to R.S. 32:702.
(Adds R.S. 9:2800.17)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Insurance to the original
bill.
1. Made technical changes.
2. Removed 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 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.
3. Added a provision that provides that whenever a motor vehicle is damaged
through the negligence of a third-party without being destroyed, and if the owner
can prove by a preponderance of the evidence that, if the vehicle were repaired
to its preloss condition, its fair market value would be less than its value before
it was damaged, the owner of the damaged vehicle is entitled to recover as
additional damages an amount equal to the diminution in the value of the vehicle.
4. Added a provision that specifies that the total damages recovered by the owner
cannot exceed the fair market value of the vehicle prior to when it was damaged,
and the amount paid for the diminution of value must be considered in
determining whether a vehicle is a total loss pursuant to present law.