Medical Payments – General Auto Insurance
General auto insurance coverage provides the usual medical payments insurance to or for each person accidentally injured while in or upon or while entering into or alighting from Automobile Medical Payments.
Under Division 1, medical payments insurance would apply to owned as well as to non-owned automobiles. Under Division 2 it would apply only to non-owned automobiles while being used in connection with garage purposes.
It is to be noted that, while Divisions 1 and 2 cover premises and operations as well as automobiles, medical payments general auto insurance applies only to automobiles. That is, if a customer slipped and fell on the garage premises, it would be necessary for him to bring a tort action against the insured under coverage A in order to collect for his injuries.
Property of Others in Charge of the Named Insured
Coverage D is bailee liability insurance, not physical damage insurance. It restores some of the protection lost under coverage B because of the exclusion of “injury to or destruction of property in charge of the insured.” The policy agrees to pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of injury to or destruction of property of others of a kind customarily left in charge of garages, including loss of use thereof, caused by accidental collision or upset of such property while in charge of the named insured.
“Collision or upset” is not defined in the policy but would be given the same interpretation as under the physical damage policy. If a garage employee were picking up or delivering or road-testing a customer’s car and had a collision accident in which the car was damaged, the garage would be covered if “legally obligated to pay damages” to the customer because of negligence as a bailee. The garage might also be liable, of course, to other parties involved in the accident. This liability would be insured under coverages A and B.
If the collision damage to a customer’s car resulted from its fall down an elevator shaft or from some other accident involving an elevator, the resulting liability, as we have seen, would be covered under coverage B, Division 3. However, if the collision or upset damage resulted from its fall off a servicing hoist (which is not considered an elevator), coverage D would again be required to take care of the resulting liability. A deductible of $50 or $100 applies to each accident, so coverage D is not available for minor dents and scratches caused by collision. And, even with large losses, the insured must reimburse the insurer to the amount of the deductible if the latter pays the entire claim.