House Bill No. 434 proposes amendments to Louisiana's laws regarding recovery limitations for damages resulting from motor vehicle accidents involving drivers who fail to maintain compulsory motor vehicle liability insurance. The bill significantly increases the thresholds for recovery, establishing that there shall be no recovery for the first $100,000 of bodily injury and the first $100,000 of property damage, replacing the previous limits of $15,000 and $25,000, respectively. Additionally, if a driver without insurance initiates a lawsuit and is awarded damages equal to or less than $100,000 for bodily injury, they will be responsible for all court costs incurred during the action.

The bill also clarifies the rights of insurers regarding subrogation. It ensures that insurers do not lose their rights to recover claims paid under their policies for amounts exceeding the newly established limits of $100,000 for both bodily injury and property damage. Furthermore, in cases where no lawsuit is filed, insurers retain the right to recover any amounts paid on behalf of the insured that exceed these limits. Overall, the bill aims to strengthen the enforcement of compulsory motor vehicle liability insurance by imposing stricter recovery limitations on uninsured drivers.

Statutes affected:
HB434 Original: 32:866(A)(1)
HB434 Engrossed: 32:866(A)(1)