Automobile Physical Damage
The State of Nevada self-funds its automobile physical damage exposures; there is no insurance company involved. As such, it is particularly important that agencies do as much as possible to minimize the cost of this program. The Risk Management Division will provide assistance and guidance, upon request, to agencies to help minimize costs and secure timely repairs to damaged vehicles. Outstanding claims will be reviewed every 30 to 60 calendar days and followed-up, as necessary. Agencies will be billed for this coverage at the beginning of the fiscal year and again before the end of the fiscal year (for any changes which may have occurred throughout the year).
Vehicle Coverage
Comprehensive and Collision: This coverage is offered but not required for State-owned automobile physical damage. Agencies must elect this coverage if they want their vehicles insured under this program. Agencies not electing this coverage will be responsible for the entire amount of any loss to their vehicle. Certain vehicles, which are being commercially leased on a long-term basis, may also be eligible for coverage under this program.
Liability: All State-owned motor vehicles are required to have automobile liability via the self-funded auto liability program, administered through the Attorney General's Office.
How to Add or Delete a Vehicle
Upon acquisition of a new vehicle, agencies have 30 calendar days during which time physical damage coverage will be automatically in force. Should a claim be filed on such a vehicle and accepted, the claim (subject to applicable deductibles) will be paid by Risk Management and premium for self-funded physical damage insurance will be assessed retroactively back to the date of acquisition. Claims filed on newly acquired vehicles, which have not been added to the insured vehicle schedule after 30 calendar days, will not be paid by Risk Management and will be returned to the agency for handling.
When agencies turn in vehicles to State Purchasing, insurance coverage will not be dropped until such time as the vehicle has been sold or until it has been reassigned to another agency.
Agencies shall submit all changes (additions, deletions, coverage changes) for physical damage coverage and liability coverage to the Attorney General's Office Tort Claim Unit (See SAM 2907). The Fleet Changes Form may be found on the Attorney General's website. Premium is assessed based on the date of acquisition. Even though the Risk Management Division administers the self-funded physical damage program, the Attorney General's Office maintains the database on the self-funded automobile fleet.
Deductibles:
Insured vehicle claims, other than Nevada Highway Patrol, are subject to a $1,000 deductible per occurrence for collision and comprehensive losses. Insured vehicles with the Nevada Highway Patrol are subject to a $1200 deductible per occurrence. If another party caused the damage and Risk Management successfully recovers the total amount of the loss, deductibles will be waived or reimbursed. Deductibles are subject to change with due notice, at the discretion of the Risk Manager to promote loss prevention.
Exclusions:
Claims will be denied if investigation reveals:
- The vehicle was not being used in the course and scope of employment.
- The employee does not possess a current valid driver's license.
- The employee was under the influence of alcohol, illegal drugs or prescription drugs with driving restrictions at the time of an accident.
- The employee violates provisions within Nevada statutes or administrative codes and the agency does not have or enforce adequate internal controls and procedures to prevent this type of activity.
- The Risk Manager will have the discretion to waive this exclusion if exceptional circumstances are presented. If a decision is made to cover the physical damage costs under these circumstances, the Risk Manager will seek reimbursement from the employee.
Reporting Procedures:
Agencies must report any Physical damage to covered vehicles that exceeds the deductible amount to the Risk Management Office as soon as possible, but not later than 90 calendar days from the date of damage. Reports must be made utilizing the online Vehicle Accident Form Origami Risk Portal link called, "Submit a Vehicle Accident/Property Loss Claim" on the Risk Management website. It must be filled out as completely as possible and accompanied by three repair estimates and claim documentation such as photos. It is the responsibility of the agency to secure and forward to the Risk Management Office all police reports that are related to a claim. Claims involving another party, which could possibly result in a claim against the State, must also be reported to the Attorney General's Office Tort Claim Unit.