Current BC law exposes non-negligent owners of rented and leased vehicles operating in the province to unlimited liability based solely on ownership. Under the TRALA-sponsored legislation passed this week, vicarious liability imposed against vehicle renting and leasing companies will be capped at one million. This liability protection applies to owners of cars and trucks under short-term rental or long-term lease agreements of either a commercial or consumer nature.

When enacted, the new law will remove the threat of multi-million awards against non-negligent companies. TRALA is also continuing to work with the BC Minister of Public Safety and Solicitor General John Les, as well as with the government-owned Insurance Corporation of British Columbia, to clarify the bill’s impact on insurance primacy. TRALA is pushing for a solution similar to last year’s successful vicarious liability reform in Ontario that makes the lessee’s policy primary. Under the 2006 Ontario reform, the lessor is vicariously liable only for the difference between the lessee’s coverage and the $1 million cap in place in the province.

TRALA worked with an international coalition of organizations and companies involved in vehicle renting and leasing in seeking vicarious liability reform in British Columbia.