Louisiana Omnibus Premium Reduction Act No Pay No Play Law


Definition of "Louisiana omnibus premium reduction act (no pay, no play law)"

Traian Pircalabu
Traian Pircalabu The K Company

Law that places limitations on an uninsured motor vehicle owner or motor vehicle operator's ability to recover damages in the event of a motor vehicle accident. The state of Louisiana requires every registered motor vehicle to be covered either by liability insurance or other evidence of the ability to pay such as a security deposit placed with the state treasury or posted bond. If there is a motor vehicle accident and the motor vehicle owner or operator does not have the minimum liability insurance or other evidence of the ability to pay in force,, the owner/operator is prohibited from recovering the first $10,000 in property damage and the first $10,000 in bodily injury damage. This prohibition also applies if the CLAIMANT does not have liability insurance or other forms of security covering the motor vehicle.

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