Do Oregon PIP Benefits Cover Off-Road Vehicle Accidents?

Oregon law requires all drivers to carry auto insurance with Personal Injury Protection (PIP) benefits. This provides up to $15,000 in coverage for an insured person’s medical and related expenses, as well as up to $3,000 per month for lost income, following a motor vehicle accident. But just because you have insurance and are current on your premiums, that is no guarantee your insurer will actually pay PIP benefits, especially if it believes there are legal grounds to deny coverage.

Court Denies Mother’s Insurance Claim Over Son’s Motorbike Accident

An Oregon Court of Appeals decision from earlier this year, Jeffers v. Country Preferred Insurance Company, provides a cautionary example. This PIP insurance dispute centered on whether or not an off-road motorbike qualified as an insured “motor vehicle.” The Court of Appeals held it did not.

To back up a bit, the plaintiff in this case purchased an Oregon auto insurance policy from the defendant, Country Financial. She filed a claim for both PIP and uninsured motorist (UM) benefits under that policy following an accident where her son, an insured member of her household, sustained a leg injury. The accident occurred when a family friend drove his minibike into the plaintiff’s son. This occurred on the plaintiff’s property as opposed to a public street.

Country Financial denied both insurance claims prompting the plaintiff’s lawsuit. Both an Oregon trial judge and the Court of Appeals, however, agreed with the insurance company’s interpretation of the policy. With respect to UM coverage, the Court of Appeals noted that it only covered accidents caused by “motor vehicles,” which the policy defined as “every device in, upon or by which any person or property is or may be transported or drawn upon a public highway,” except for those moved by human power (i.e., bicycles) or along rails.

Here, the motorbike in question was not permitted on public highways. While it is functionally similar to a motorcycle, the minibike was “not eligible to be registered” as a motorcycle and lacked the operational equipment necessary to become eligible, such as headlights or turn signals. Indeed, the mini-bike’s own instructions stated it should “never” be operated on public roads.

For similar reasons, the plaintiff’s son could also not claim any PIP benefits under the policy. The PIP provision excluded coverage for any “self-propelled equipment designed for use principally off public roads, while not on public roads,” Again, the Court of Appeals noted the motorbike in this case was explicitly sold as an off-road vehicle not intended for use on public highways. As such, it was not covered by the plaintiff’s policy.

Contact a Portland PIP Denials Lawyer Today

If your insurance claim was denied following any kind of accident, it is important to seek out prompt legal advice from a qualified Portland PIP denials lawyer. Contact Rosenbaum Law Group today at 503-288-8000 to schedule a consultation.

Source:

scholar.google.com/scholar_case?case=455366784913168378