Office of Risk Management Annual Conference

State of Louisiana Automobile Claims

byWalter Lockhart

Email: Walter.Lockhart@la.gov

Office of Risk Management

P.O. Box 91106

Baton Rouge, LA 70821

Phone:225-342-8466

Fax:225-342-4470

Office of Risk Management Annual Conference

Auto policy definitions

Auto: means any vehicle required to be licensed by the Motor Vehicle Law of Louisiana but does not include mobile equipment.

Mobile equipment: means any vehicle not required to be licensed by the Motor Vehicle Law of Louisiana.

Office of Risk Management Annual Conference

Physical damage definitions

Collision-collision with another object or overturn. Deductible $1000.

Comprehensive-from any cause except above.

(Examples: fire, lightning, theft, windstorm, hail, flood, vandalism). Deductible $1000.

All agencies have a $1000 deductible on all windshield claims.

Office of Risk Management Annual Conference

Proof of insurance for state owned/licensed vehicles

Website: http://doa.louisiana.gov/orm/. Letter from J. S. Thompson, Jr. Policy period: 7/1/09 to 7/1/10. Place copy of letter in all State vehicles.

Office of Risk Management Annual Conference

Auto physical damage and liability coverage

State owned licensed vehicles used for state business.

Licensed vehicles rented and/or leased used for state business.

Office of Risk Management Annual Conference

What should a state employee do after an auto accident?

Refrain from making any statements and/or commitments regarding payments of damages and/or medicals to anyone.

Get names, addresses and phone numbers of all parties involved in the accident.

Write down the license plate number(s) of each vehicle involved in the accident.

Office of Risk Management Annual Conference

Towing of state vehicles

If possible, avoid having state vehicles towed to a wrecker yard.

If vehicle is towed to wrecker yard, give state vehicle location on DA 2041, address and phone number of wrecker yard.

Office of Risk Management Annual Conference

DA 2041 form

http://doa.louisiana.gov/orm/formsCR.htm Complete this form. Then email to (ORM-DA2041@la.gov) or fax

(225-342-7740) to me within 48 hours after the accident.

For all claims on state owned licensed vehicles and/or rented/leased vehicles on state business.

Office of Risk Management Annual Conference

Office of Risk Management Annual Conference

Office of Risk Management Annual Conference

Who will be the adjuster handling the physical damage claims?

Drew Hall. He will handle: State owned licensed vehicles and rented/leased vehicles used on State

business. Phone: 225-219-3739 Email: Drew.Hall@la.gov

Office of Risk Management Annual Conference

Claim assigned to adjuster. Adjuster reviews the DA 2041.

If damages minor, adjuster will send letter asking agency if it wishes to make claim.

If so, agency sends two repair estimates and copy of police report to adjuster.

If vehicle is repairable, adjuster will check final invoice for correctness and then pay claim less deductible to vendor.

Process of a physical damage claim

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Process of a physical damage claim(continued)

ORM must have a final invoice to pay the vendor.

The agency responsible for paying the vendor its deductible.

Office of Risk Management Annual Conference

Office of Risk Management Annual Conference

Physical damage/supplemental damages

If supplemental damages found after vehicle disassembled, vendor will contact ORM and/or appraiser.

Additional damages must be agreed upon before being paid by ORM.

All damages must be from accident. Old damages will be disallowed.

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Physical damages/vehicle undriveable

ORM will hire appraiser to inspect vehicle. If repairable, adjuster will send copy

(appraisal) to agency. If not, adjuster will advise agency vehicle is

deemed total loss and prepare paper work for agency signature.

Office of Risk Management Annual Conference

Physical damage/total loss

Total loss letter for state vehicles deemed total loss.

Agency will send needed paper work directly to LPAA on total losses.

ORM will subtract high salvage bid and deductible.

Agency will receive salvage proceeds from LPAA after sale of salvage.

Office of Risk Management Annual Conference

Office of Risk Management Annual Conference

Office of Risk Management Annual Conference

Office of Risk Management Annual Conference

Office of Risk Management Annual Conference

Office of Risk Management Annual Conference

Office of Risk Management Annual Conference

Office of Risk Management Annual Conference

Subrogation

If adverse party at fault, we will turn this matter over to Subrogation Unit for recovery.

Imperative that agencies cooperate by sending claims and having vehicles repaired in timely manner.

Prescription period one year from date of loss.

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Personal vehicles used on state business

Registered owner’s auto insurance (liability and physical damage) is primary and responds first.

State’s insurance is excess on liability coverage only if employee is within scope and permission.

Office of Risk Management Annual Conference

Personal vehicles used on state business (continued)

See insurance notice letter number 98-2. Reimbursement of collision deductible up

to $1000.00 or If auto has no collision insurance,

maximum of $1000.00 per collision loss. Collision, not comprehensive claims. If other party/carrier pays your damages no

payment from ORM.

Office of Risk Management Annual Conference

Office of Risk Management Annual Conference

Office of Risk Management Annual Conference

Office of Risk Management Annual Conference

Rental Vehicles Report all rental auto accidents to ORM

(use DA 2041 form). New state motor pool rental contract with

Enterprise effective 12/21/09. Report Enterprise auto rental accidents to

Enterprise office where rented in addition to reporting to ORM.

See Office of State Purchasing and Travel website for more information on new contract.

http://www.doa.louisiana.gov/osp/travel/travelpolicy.htm

Office of Risk Management Annual Conference

Office of Risk Management Annual Conference

Automobile liability third party claims

Agency will forward completed DA 2041 form to ORM by email or fax.

Supervisor will assign claim to adjuster. Adjuster will investigate claim and decide

whether there is liability on our driver. If so, damages will be paid based on percentage of liability. If no liability, claim will be denied.

If any injuries involved, ORM will normally assign claim to independent adjuster.

Office of Risk Management Annual Conference

LAWSUITS If agency/employee receives lawsuit on

auto

accident, forward to ORM as soon as possible.

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Insurance information notice lettersWebsite: http://doa.louisiana.gov/orm/

No. 97-1 Towing of state vehicles. No. 97-2 Inspection of rental vehicles. No. 98-2 Reimbursement of collision

deductible on employee’s personally-owned vehicles used on state business.

No. 99-6 Losses involving uninsured autos. No. 2001-2 Rented and/or courtesy

vehicles. No. 2002-1 Reduction of liability limit.

Office of Risk Management Annual Conference

THE END