Safeco Insurance Co. of America v. Houchins

[14]

Opinion

DUNN, J.

On July 31, 1967 appellant, a postal employee, was driving a United States mail truck in the course and scope of his employment and was injured when it collided with a vehicle driven by Gary Gnade, an uninsured motorist. The United States, through its Bureau of Employees’ Compensation, paid benefits to appellant pursuant to 5 United States Code Annotated sections 8101-8150, entitled “Compensation for Work Injuries.”

1

Before the accident, respondents had issued a policy of automobile insurance to appellant affording uninsured motorist coverage with limits required by California statute and otherwise complying with California Insurance Code section 11580.2. Appellant instituted an arbitration proceeding, pursuant to Insurance Code section 11580.2, subdivision (f). Respondents then filed a superior court action seeking: (1) an injunction prohibiting the arbitration and (2) a declaration that any amount payable by respondents to appellant should be reduced by the amount of compensation benefits paid and payable to appellant by his employer. This action went to trial and the court found the amounts so paid and payable exceeded the limits of respondents’ uninsured motorist coverage. Judgment was ordered for respondents and appellant was enjoined from further pursuing arbitration. The appeal is from that judgment.

Only one point is presented on this appeal, namely, the right of respondent insurers to reduce uninsured motorist benefits payable to appellant by the amount he received from his employer, the United States government, as compensation for work injuries.

Insurance Code section 11580.2, subdivision (a) requires an automobile policy to provide uninsured motorist coverage, unless deleted by written agreement. The insured must be covered, with statutory limits, “. . . for all sums within such limits which he . . . shall be legally entitled to recover as damages for bodily injury or wrongful death from the owner or operator of an uninsured motor vehicle.” Subdivision (h) states: “Any loss payable under the terms of the uninsured motorist . . . coverage to or for any person may be reduced: (1) By the amount paid and the present value of all amounts payable to him under any workmen’s compensation law. . . .” The policy issued by respondents adopted the statutory language providing, under its clause entitled “Limits of Liability,” that: “(b) Any loss payable under the terms of this coverage to or for any person shall be reduced by: (1) the amount paid and the present value of all amounts payable to him under any workmen’s compensation law. . . .”