Chapter 6. Central Stores
Section 6.3. Motor Pool Vehicles
6.3.4. Automobile Insurance
Automobile Insurance: This automobile fleet policy provides protection for the University and the University-authorized driver for any liability resulting from accidents arising out of the use of the University-owned vehicle.
A certificate of insurance is located in the glove compartment of the vehicle.
The insurance company will pay all sums that the University or the driver shall become legally obligated to pay up to the policy limits:
Insurance Carrier: Michigan Universities Self-Insurance Corporation (M.U.S.I.C.)
Policy #: AL711998
What the Policy Does:
- While on official University business, the policy provides above protection at all times without regard to hours.
- The company will defend any suit against the University or the authorized driver and will pay all expenses in any such defending suit, subject to the limits stated in the policy.
What the Policy Does NOT Do:
- It does NOT provide for any physical damage coverage to the vehicle, such as collision, extended coverage or for fire and theft. The University must pay for such losses, and may charge the department or driver accordingly.
- It does NOT provide for the loss of personal property (luggage, clothing, equipment, etc.) by fire or theft.
- Bodily injury occurring to a University employee in a University-owned vehicle is not covered, but protection would be afforded by Worker's Compensation Insurance.
- Guest passengers, including spouses or relatives of the University-authorized driver, are afforded no protection under the policy and ride at their own risk. If the driver is found guilty of gross negligence, the passengers may sue the driver.
- Unauthorized drivers of University-owned vehicles are not protected under the policy and could be declared by the courts to be personally liable for any judgments resulting from accidents caused by use of the University-owned vehicle.
- Individuals driving privately owned cars on official University business are afforded no protection under the policy. Such individuals are personally liable for any judgments against them resulting from accidents arising out of the use of their personal-owned cars. Protection, if any, must be provided by their personal insurance policies (refer to paragraph 7).
- The limits of the policy are extended to an individual as excess insurance while driving a personal automobile in the course of employment by the University, provided that such insurance is applicable only if the individual has primary automobile bodily injury and property damage liability insurance. The required minimum limits are: $20,000/each person and $40,000/each occurrence for bodily injury and $10,000/each occurrence for property damage.
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