IC Non-Life Insurance Agent's Practice Exam 2025 - Free Non-Life Insurance Practice Questions and Study Guide

No-fault insurance is designed to streamline the claims process following an automobile accident by ensuring that individuals receive compensation for their injuries without needing to establish fault. This means that regardless of who was responsible for the accident, the insured party can file a claim and receive benefits for their medical expenses and, in some cases, lost wages.

This system aims to reduce the number of legal disputes over liability and speed up the compensation process, which can often be lengthy and complicated when fault is contested. Consequently, under a no-fault policy, the focus is on the insured's recovery rather than on assigning blame, which differentiates it from traditional liability insurance where proof of fault is crucial for payouts.

Understanding this feature is essential for grasping how no-fault insurance works and the rationale behind its implementation, including the alleviation of court burdens and the promotion of quicker financial relief for accident victims.