Risk Management

Effective Date: 07/01/95

Policy Statement 3: Vehicle Insurance


Damage to Vehicle

The University carries blanket liability insurance (no medical payments, uninsured motorist, under-insured motorist, or collision coverage) on University-owned vehicles. Motor Fleet Management carries liability coverage on its vehicles. (For more information on insurance coverage for Motor Fleet Management vehicles, consult the MFM handbook in the glove compartment of each vehicle or call the Central Motor Pool.)

Optional collision and comprehensive coverage is available for University-owned vehicles at a premium cost.


Workers' Compensation Coverage

Only University employees (which includes students while on the University payroll) injured during authorized use of Motor Fleet Management or University-owned vehicles are covered by Workers' Compensation (see also sections on reporting motor vehicle accidents and comprehensive claims and the use of state-owned vehicles for insurance purposes).


Passenger Medical Coverage

Injured non-state employees and students not on the University payroll (or are not authorized to use official vehicles) who are passengers in State/University vehicles are not covered by Medical Payment Insurance. They are covered by Bodily Injury Liability, if the driver of the vehicle in which they are passengers is found to be responsible for their injury.


Vehicle Identification

Vehicles owned by the N.C. Department of Administration, Motor Fleet Management, and leased to the University are assigned numerical identification numbers, usually three to five digits. Vehicles owned by East Carolina University are numbered with an alphabetical letter and followed by two to three digits. All vehicle identification numbers should appear on the vehicle's windshield.


University Vehicle Liability

All State/University-owned vehicles assigned to East Carolina University, as well as all other self-propelled equipment (mowers, golf carts, fork lifts, etc.) are covered by a blanket vehicle liability policy, which insures the University against the claims of others when the vehicle is being used for official University business. The limits of the policy are as follows:


University Vehicle Liability Limits

In-State

Out-of-State


Driver's Personal Liability and Available Non-Owner Coverage

University employees who drive State/University vehicles are to be advised that they could be held personally liable for bodily injuries and/or property damage occurring in excess of the limits provided above while acting within the scope of their employment. This is of particular importance to employees who have been personally assigned a state car. It is recommended that individuals who operate State/University vehicles review their personal coverage with their insurance agent, to determine whether their personal policy will pick up where the State's insurance ceases, and that they are satisfied with its limits provided in the event that the personal policy becomes excess coverage. The type of coverage endorsement that would be requested is referred to as "Extended Non-Owner's Endorsement" and can be obtained for a nominal fee. This extension does not apply to damages to State-owned vehicles, only for bodily injury and property damages to others as a result of the operation of the vehicle.


Physical Damage (Comprehensive and Collision Coverage)

Comprehensive insurance provides coverage for physical damages received other than in an accident or resulting from normal wear and tear. Comprehensive insurance provides coverage for, but is not limited to, such losses as fire, theft, glass breakage and vandalism.

Personal belongings stolen or damaged are not covered. Most homeowners policies cover damage to personal belongings. Employees in such a situation should check with their homeowner's policy.

Comprehensive losses involving suspicious fires, theft, or vandalism are to be reported immediately to the proper law enforcement authorities.

Collision insurance coverage provides for repairs to vehicles for damages received in an accident when the University driver is at fault or no-fault is established.

Collision coverage is not provided without a written departmental request and acceptance of responsibility of payment of the premium. Requests for collision coverage are to be made to the Risk Management Section of the University Property Office. Losses should be reported to Risk Management as well as to the proper law enforcement authorities.


University Liability Coverage

The University does not offer liability and physical damage insurance coverage under the State/University insurance program for vehicles provided to departments by foundations. Insurance for foundation-owned vehicles is to be obtained through the providing foundations or other non-university funding sources.


Courtesy Vehicles

The University does offer vehicle liability and physical damage insurance coverage for courtesy vehicles provided to the Athletics Department by automobile dealerships, for vehicles leased to the Athletics Department, and for vehicles on loan to the Health & Human Performance Drivers Ed. program.


Foundation Vehicle Exclusion

Athletics courtesy vehicles, vehicles leased by Athletics, foundation-owned vehicles, and Drivers Ed. vehicles are prohibited from displaying state-owned plates.

All State/University-owned motor vehicles are covered by a blanket liability policy written by the Traveler's Insurance Company, which insures us against the claims of others only when the vehicle is being used for official University business. The limits of this policy are further described in additional statements on Motorized Vehicle Insurance.


Medical Payments and Physical Damage Exclusion

The University's motor vehicle liability insurance coverage does not insure against damage to University vehicles or injuries to any driver. Personal injuries to employees during authorized operation of a Motor Fleet vehicle are covered by Worker's Compensation. Worker's Compensation claims should be filed with the Environmental Health and Safety Office. In the event that a state vehicle has an accident with another state vehicle, our insurance policy will not respond for vehicle damages. It is up to the owning departments or agencies to work out vehicle damage compensation arrangements.


Named Non-owners Coverage

Individuals who do not own a vehicle but do drive a State or University vehicle on occasion would be wise to check into the possibility of purchasing a "Named Non-Owners Policy" from an agency or company of their choice. This policy would protect them in the same manner as the "Extended Non-Owner's Endorsement" for those who do own vehicles.


Supervisor's Responsibilities

All supervisors responsible for requesting employees to drive State/University vehicles must be certain that the individual has a valid and correct category driver's license. Supervisors are responsible for informing individuals of the limits of liability.