United Nat. Ins. Co. v. Philadelphia Gas Works, Division of United Gas Works Imp Co.
| Decision Date | 24 March 1972 |
| Citation | 221 Pa.Super. 161,289 A.2d 179 |
| Parties | UNITED NATIONAL INSURANCE COMPANY, Appellant, v. PHILADELPHIA GAS WORKS, DIVISION OF UNITED GAS WORKS IMPROVEMENT COMPANY (or U.G.I.) a/k/a Philadelphia Gas Works of the City of Philadelphia, operated by U.G.I. Corp. and City of Philadelphia. |
| Court | Pennsylvania Superior Court |
Richard S. March, Galfand, Berger, Senesky & Lurie, Philadelphia, Pa., for appellant.
Henry J. Donner, Philadelphia, for Philadelphia Gas Works Division of U.G.I. Corp.
Before WRIGHT, P.J., and WATKINS, MONTGOMERY, JACOBS, HOFFMAN SPAULDING and CERCONE, JJ.
In this action of assumpsit, appellant, United National Insurance Company, hereinafter referred to as 'United', seeks to recover a sum of money, from its insured, the appellee Philadelphia Gas Works, which United paid to four claimants for injuries sustained in an automobile accident caused by the negligent operation of a motor vehicle rented by the Philadelphia Gas Works and driven by one of its agents. The automobile was rented from Discount Rent-A-Car company, hereinafter referred to as 'Discount', and subject to United's insurance policy, which provided inter alia, as follows:
'Other insurance: The insurance under this policy shall be excess insurance over any other valid and collectible insurance available to the insured, either as an insured under another policy or otherwise.'
United contends that Philadelphia Gas Works had other valid and collectible insurance either as an insured or 'otherwise' at the time of the accident by reason of a certificate of self-insurance issued to it by the Secretary of Revenue of the Commonwealth of Pennsylvania pursuant to Article XIV of the Pennsylvania Motor Vehicle Code, entitled, liability. United therefore concludes that since there is no stated limit in the certificate, United has no excess liability.
Philadelphia Gas Works, on the other hand, contends that the certificate of self-insurance is not an insurance policy or 'otherwise' as contemplated in United's policy, and, that even if it were to be so considered, the certificate does not apply to the automobile rented by it, but pertains only to motor vehicles owned by it and registered in its name.
Cross-motions for Summary Judgment on the pleadings were filed and the lower court granted the motion of Philadelphia Gas Works and denied that of United, thus this appeal by United.
The two questions to be determined here are:
1. Is a certificate of self-insurance, issued by the Secretary of Revenue, an insurance policy, and
2. If it is, does it cover an automobile rented by Philadelphia Gas Works
We are of the opinion that the certificate is not an insurance policy. The general object or purpose of an insurance is to afford indemnity or security, Commonwealth v. Federal Land Value Association Co., 312 Pa. 425, 167 A. 300 (1933). Under the certificate the holder pays for damages out of his assets and is not indemnified against this loss by an insurance company.
The purpose of a certificate of self-insurance is the protection of the public against an owner of vehicles, and it is not one of the requirements of said certificate that such owner or his driver procure indemnity against ultimate personal responsibility. Although the case of Farm Bureau Mutual Auto Insurance Company v. Violano, 123 F.2d 692, cert. denied 62 S.Ct. 1043, 316 U.S. 672, 86 L.Ed. 1747, is not exactly on point, the nature of a certificate of self-insurance, however, is discussed, and it was held in that case that a certificate of self-insurance was not an insurance policy on the reasoning that the state of Vermont was not interested in the indemnity of a certificate holder, but solely in the protection of the public based upon the certificate holder's ability to pay for damages. Our Pennsylvania Motor Vehicle Safety Responsibility Act sets forth language which indicates that a certificate of self-insurance is not regarded as an insurance policy. Section 1404(c)(1), (2), (3), (4); Section 1404(d).
Granting, arguendo, that a certificate is in the nature of an insurance policy we are of the opinion that it does not apply to the car which Philadelphia Gas Works rented and which was involved in the accident.
Section 1434 of the Motor Vehicle Safety Responsibility Act of 1959, 75 P.S. 1434, qualifies any person In whose name more then twenty-five motor vehicles Are registered as a self-insurer by obtaining a certificate of self-insurance from the Secretary of Revenue upon...
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