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March 10, 2003
Background: As of July 1, 2002 the state of Ohio and The Ohio State University issued a policy that deductible for damages to equipment, vehicles, etc was changed from $1,000 to $10,000. The OSU, as most universities and other state entities is self insured.
OARDC previously released information indicating this to each department via E-mail on February 18, 2003. This information was not previously released because we were not informed by the University of this change in policy. In fact, OARDC discovered the change in policy by chance conversation between our motor pool and OSU Transportation and Parking Service. We have no record of being officially informed about this change. The ten-fold increase in the amount of the deductible presents a budgetary challenge to the University, OARDC, departments and faculty. OARDC cannot insure the difference as we are part of the state and University policy. Therefore, effective immediately we will adopt the following policy related to responsibility for vehicle liability:
1. Departments will be responsible for the $10,000 deductible on any car, truck or other vehicles purchased and owned by academic departments.
2. Investigators will be responsible for the $10,000 deductible on any car, truck or other vehicles purchased and owned by the individual investigator and/or a project group.
3. OARDC will be responsible for the $10,000 deductible on any car, truck or any other vehicles in the OARDC Motor Pool, including rentals and leased vehicles, because these vehicles are released for use on a fee basis established by the vehicle policy.
The liability coverage for vehicles in item 3 may become the responsibility of the department or investigator if driver eligibility rules established by the University are not followed. These rules were previously sent to departments in a memo dated July 20,2000 by former Associate Director Skip Nault and are included as an attachment to this policy.
University policy indicates that OSU employees (receive an OSU paycheck) are covered for personal liability in an at-fault accident if in a University vehicle and on University business. Non-OSU employees (no OSU paycheck) as a passenger (driver's are not covered) in a university vehicle are covered up to $5,000 of liability insurance when riding in a university vehicle.
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