A person with no car insurance can recover all of their losses if the other party is 100% at fault for the accident

Driver of an unregistered and uninsured vehicle was not entitled to indemnity for damages to vehicle even though the other driver was found to be 100% at fault.

Kotello v. West, [2010] M.J. No. 154, May 4, 2010, Manitoba Court of Queen’s Bench, C. Suche J.

This action arose out of a motor vehicle collision.  The Court found that Mr. West was 100% responsible for the collision.  However, the other party, Mr. Kotello, had not registered his vehicle nor was it insured at the time of the accident.  Manitoba Public Insurance (“MPI”) asserted that for this reason Mr. Kotello could not recover the costs of the repairs from either Mr. West or MPI.

The Court held that Manitoba maintains a no fault insurance scheme for motor vehicles that is both compulsory and universal.  The premise is that all vehicles must be insured.  Thus, the Court found that Mr. Kotello’s car was required by law to be designated in an unexpired owner’s certificate at the time of the collision and it was not.  Section 38(5)(b)(iii) of the Manitoba Public Insurance Act applied and thus Mr. West’s liability was reduced by the amount of the insurance monies that would have otherwise been payable to Mr. Kotello.  Thus, Mr. Kotello was only entitled to be paid the amount of the deductible.

This case was digested by Cameron B. Elder and edited by David W. Pilley of Harper Grey LLP.

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