Question from an IIABNY member: Our insured’s son drove a car that had been purchased before adding it onto the policy. According to the New York No-Fault endorsement, there is coverage from the day of purchase. However, the company has denied coverage because the named insured did not purchase the vehicle; her son purchased it.
Can the passenger injured in the crash get coverage for his injuries from his parents' policy? He is a minor age 18 or 19 and in college. Should the parents submit to their carrier under PIP?
IIABNY response: The NY PIP endorsement states in part:
Subject to the exclusions and conditions set forth below, an eligible injured person is:
(a) the named insured and any relative who sustains personal injury arising out of the use or operation of any motor vehicle;…
This coverage does not apply to personal injury sustained by:...
(b) any relative while occupying, or while a pedestrian through being struck by, any motor vehicle owned by the relative with respect to which the coverage required by the New York Comprehensive Motor Vehicle Insurance Reparations Act is not in effect;
(c) the named insured or relative while occupying, or while a pedestrian through being struck by, a motor vehicle in New York State, other than the insured motor vehicle, with respect to which the coverage required by the New York Comprehensive Motor Vehicle Insurance Reparations Act is in effect; however, this exclusion does not apply to personal injury sustained in New York State by the named insured or relative while occupying a bus or school bus, as defined in sections 104 and 142 of the New York Vehicle and Traffic Law, unless that person is the operator, an owner, or an employee of the owner or operator, of such bus or school bus;
(e) any person while occupying a motorcycle;
(f) any person who intentionally causes his or her own personal injury
(g) any person as a result of operating a motor vehicle while in an intoxicated condition or while his ability to operate such vehicle is impaired by the use of a drug (within the meaning of section 1192 of the New York Vehicle and Traffic Law); or
(h) any person while:
(1) committing an act which would constitute a felony, or seeking to avoid lawful apprehension or arrest by a law enforcement officer;
(2) operating a motor vehicle in a race or speed test;
(3) operating or occupying a motor vehicle known to that person to be stolen; or
(4) repairing, servicing or otherwise maintaining a motor vehicle if such conduct is within the course of a business of repairing, servicing or otherwise maintaining a motor vehicle and the injury occurs on the business premises;
(i) the named insured or relative while not occupying a motor vehicle or a motorcycle when struck by a motorcycle in New York State with respect to which the coverage required by the New York Comprehensive Motor Vehicle Insurance Reparations Act is in effect;
So, under the parents’ PIP coverage, any “relative” (i.e., a child or other person related to the named insured by blood who regularly resides in the insured’s household, including any such person who regularly resides in the household, but is temporarily living elsewhere) is covered for injuries arising out of the use or operation of any motor vehicle. Under this provision, the 18 year-old college student has coverage for his injuries. He would not have coverage if:
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He was injured by a vehicle he owned and that did not carry PIP coverage
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He was injured while occupying someone else’s vehicle that did have PIP coverage (unless it was a bus or school bus)
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He was injured while riding a motorcycle
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He intentionally injured himself
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He was injured while driving under the influence of alcohol or illegal drugs
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He was injured while committing a felony, trying to outrun the police, racing, driving a vehicle he knew was stolen, or repairing a vehicle on the premises of a repair shop where he worked
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He was injured when struck by a motorcycle that had PIP coverage.
In your situation, he was injured while occupying his friend’s car, and your insured's company has determined that this car did not carry PIP coverage. Therefore, the second bullet point should not apply, none of the other bullet points appear to apply, and he should be able to recover under his parents’ PIP coverage.