James v SCR Medical Transportation, Inc.

2016 IL App (1st) 150358 (Ill. App., 2016)

Words & Phrases

Underinsured Motorist Coverage: Limits

Trial Judge

Peter Flynn

Appellate Judge

McBride

Holding

Employee barred from suing employer for failure to maintain $1 million in UIM limits.

Fact Summary

SCR had contract with Pace to supply drivers for Pace paramedical transport vehicles. In the contract, SCR agreed to carry auto insurance with an Underinsured Motorist coverage limit of $1 million. Driver of paramedical van was injured in collision with motorist he contended was underinsured because the motorist had only $50,000 in liability coverage. However, the UIM coverage actually carried by SCR had limit of only $50,000, not $1 million, so the motorist was not actually underinsured, and the UIM carrier denied the van driver’s UIM claim. Van driver’s claim against his employer, SCR, was barred by exclusive remedy provision of the Worker’s Compensation Act. Van driver’s claim against Pace failed because it was not Pace’s obligation to obtain the UIM coverage. Claim against the UIM insurer to reform the UIM limits failed because there was no basis shown for reforming the policy.

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