MOTOR VEHICLE LIABILITY SELF-INSURANCE PROGRAM - 2420
Legal Authority
Government Code §§ 16378, 16379, 11290
Insurance Code § 557.5
United States Code, Title 19, § 1627a(c)(1)
Definitions
Self-Propelled
Land Vehicles:
Defined in 19 USC § 1627a(c)(1)
Policy
The Office of Risk and Insurance Management (ORIM) administers the State Motor Vehicle Liability Self-Insurance Program (VELSIP), which provides self-insured liability coverage for state agencies and employees who operate covered self-propelled land vehicles on official state business.
Effective January 1, 2004, liability coverage is limited to $1,000,000 per occurrence/accident when the state-owned vehicle is operated by a non-civil service employee (e.g., student assistant, volunteer, etc.) on official state business. In such an instance, the employing department/agency will be financially responsible for the payment of any claims, settlements, judgments or verdicts in excess of $1,000,000.
With the exception of peace officers as defined in Insurance Code section 557.5, the VELSIP provides excess liability coverage for state employees while driving non-state vehicles on official state business, but only after the vehicle owner’s liability policy limits have been paid.
Personal Injuries
The VELSIP does not provide coverage for injury to state employees or damage to state owned vehicles. Employee injuries are handled through the Workers’ Compensation program.
Property Damage
Repairs for damage to state vehicles is the responsibility of the state agency owning the vehicle.
Responsibilities
ORIM:
- Administers the State Motor Vehicle Liability Self-Insurance Program.
- Provides annual rate assessment invoice to state agencies.
Resources
None