PETITION OF:

SECTION 1. Purpose of this act.

The purpose of this act is to limit the damages recoverable by an uninsured motorist to actual economic losses only, in an effort to provide greater inducement for motorists to meet the statutory requirements for compulsory insurance coverage.

It is estimated that approximately seven percent of Massachusetts motorists operate without obtaining such insurance coverage, with the percentage exceeding 20 percent in the higher-rated urban territories such as Boston. These uninsured motorists contribute to the costs of the insurance system without accepting their fair share of its costs, and at the expense of law-abiding motorists.

For example, in the event of an accident between an insured motorist and an uninsured motorist for which the uninsured motorist is found to be at fault, the bodily injury costs of the insured motorist are borne by the insured motorist's company through the insured motorist's Uninsured Motorist Coverage. In the event of such an accident in which the insured motorist is found to be at fault, the bodily injury costs of the uninsured motorist are borne by the insured motorist's company through the insured motorist's liability coverage. In either circumstance, the insured motorist's company bears the cost of the accident regardless of the determination of fault. Thus the actions of uninsured motorists contribute to higher costs for insured motorists.

This bill seeks therefore to at least partially redress this situation by prohibiting the uninsured motorist from collecting for any more than his/her actual economic damages, in order to encourage uninsured motorists to meet the requirements and responsibilities of driving.

However, it is understood that a major reason for the lack of compliance with the requirements for compulsory insurance is the high cost of such insurance, especially for motorists in high-rated territories. A just society has every right to ask that its citizens abide by certain requirements in order to promote the public good; a truly just society will also seek to provide means for its citizens to meet those requirements. Consequently, the provisions of this act are to be effective only if measures are taken to significantly reduce the cost of such motor vehicle insurance, especially in the high-rated territories.

SECTION 2. Section 6D of Chapter 231 of the General Laws of Massachusetts, as appearing in the 2004 Official Edition, is hereby amended by adding at the end of the current section the following sentences:

In any action of tort brought as a result of bodily injury, sickness or disease, arising out of the ownership, operation, maintenance or use of a motor vehicle within this commonwealth by the defendant, any plaintiff who is under obligation to meet the requirements of sections thirty-four A and thirty-four M of chapter ninety and who, at the time of the incident giving rise to such injury, sickness or disease, was not satisfying those requirements, may recover damages only for the reasonable and necessary expenses incurred in treating such injury, sickness or disease for necessary medical, surgical, x-ray and dental services, including prosthetic devices and necessary ambulance, hospital, professional nursing and funeral expenses, and may not recover damages for pain and suffering, including mental suffering associated with such injury, sickness or disease. Reasonable attorney fees are to be determined by a court of appropriate jurisdiction, not to exceed fifty (50) percent of the amount of the recovered damages.

SECTION 3. This act shall take effect six (6) months from the date of its enactment, or on January first of the year two thousand and eight, whichever date is later, but only if measures are taken, such as the passage of strong choice/no-fault legislation, that in the judgment of the Commissioner of Insurance have, or will have by the effective date of this act, the effect of allowing motorists to reduce the costs of the minimum compulsory bodily injury insurance in the highest-rated territories by a minimum of twenty (20) percent.