News & Insights

School buses are by far the safest mode of transportation. In fact, the National Highway Traffic Safety Administration as previously found that school buses are seventy times safety than passenger cars. Notwithstanding this excellent track record, accidents do happen. In the event of an accident with injuries, many school bus operators may wonder who is responsible for the medical bills of any injured passengers. This is addressed in the Pennsylvania Motor Vehicle Financial Responsibility Law.

Pennsylvania has a choice no-fault automobile insurance framework, also known as Personal Injury Protection (“PIP”). Those holding an insurance policy will file a claim with their own insurance for medical costs resulting from an injury up to the policy limit, but retain the option to pursue the at-fault driver for additional claims depending on the insureds tort election in the policy. Pennsylvania requires all automobile insurers to provide a minimum of $5,000 in medical benefits to their insureds, though this amount could be more depending on the policy. 75 Pa.C.S.A. §1711. Pennsylvania also establishes a priority system for these first party benefit claims. Specifically, a person who suffers an injury arising out of the maintenance or the use of a motor vehicle will first recover benefits in the following order: i) from their own insurance; ii) from a household policy covering the insured; iii) from the policy covering the vehicle in which the injured person was an occupant; and iv) from the policy of any motor vehicle in an accident, if that person is not an occupant of a vehicle. 75 Pa.C.S.A. §1713(a). Courts have upheld this this priority of first party benefits, as well as an anti-stacking rule in 75 Pa.C.S.A. §1717 that prevents insureds from stacking first party benefits when the insured is covered by multiple insurance policies, defaulting to the policy that has first priority. Laguna v. Erie Ins. Group, 370 536 A.2d 419, 422 (Pa. Super. Ct. 1988).

In the event of an accident with injuries, school bus operators should report the incident to their own insurance carrier and, in consultation with the school district, promptly notify parents or guardians of the involved students. School bus operators should be mindful to inform parents that Pennsylvania is a no-fault state, meaning medical expenses are paid by a person’s own automobile insurance regardless of fault. Accordingly, contractors should inform parents that the household automobile policy is the primary source of coverage for any accident, and should also advise parents or guardians to speak with their insurance carrier as soon as practicable to evaluate next steps. If you have questions regarding this process of the information above, you can contact help@rckelly.com or call us at 215-896-3846.