2021 Georgia Code
Title 33 - Insurance
Chapter 24 - Insurance Generally
Article 1 - General Provisions
§ 33-24-51. Purchase of Insurance Covering Injuries Resulting From Governmental Ownership and Use of Motor Vehicles; Waiver of Governmental Immunity; Limitation of Liabilities

1. A municipal corporation, a county, or any other political subdivision of this state is authorized in its discretion to secure and provide insurance to cover liability for damages on account of bodily injury or death resulting from bodily injury to any person or for damage to property of any person, or for both arising by reason of ownership, maintenance, operation, or use of any motor vehicle by the municipal corporation, county, or any other political subdivision of this state under its management, control, or supervision, whether in a governmental undertaking or not, and to pay premiums for the insurance coverage.
2. The sovereign immunity of local government entities for a loss arising out of claims for the negligent use of a covered motor vehicle is waived as provided in Code Section 36-92-2. Whenever a municipal corporation, a county, or any other political subdivision of this state shall purchase the insurance authorized by subsection (a) of this Code section to provide liability coverage for the negligence of any duly authorized officer, agent, servant, attorney, or employee in the performance of his or her official duties in an amount greater than the amount of immunity waived as in Code Section 36-92-2, its governmental immunity shall be waived to the extent of the amount of insurance so purchased. Neither the municipal corporation, county, or political subdivision of this state nor the insuring company shall plead governmental immunity as a defense; and the municipal corporation, county, or political subdivision of this state or the insuring company may make only those defenses which could be made if the insured were a private person.
3. The municipal corporation, county, or any other political subdivision of this state shall be liable for damages in excess of the amount of immunity waived as provided in Code Section 36-92-2 which are sustained only while the insurance is in force and only to the extent of the limits or the coverage of the insurance policy.
4. If a verdict rendered by the jury exceeds the limits of the applicable insurance, the court shall reduce the amount of said judgment or award to a sum equal to the applicable limits stated in the insurance policy but not less than the amount of immunity waived as provided in Code Section 36-92-2.
5. Premiums on the insurance authorized by subsection (a) of this Code section shall be paid from the general funds of the municipal corporation, county, or political subdivision.

(Code 1933, § 56-2437, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 1985, p. 1054, § 1; Ga. L. 2002, p. 579, § 1.)

- Effect of purchasing liability insurance on sovereign immunity of municipality, § 36-33-1.

- For article surveying developments in Georgia local government law from mid-1980 through mid-1981, see 33 Mercer L. Rev. 187 (1981). For article surveying developments in Georgia torts law from mid-1980 through mid-1981, see 33 Mercer L. Rev. 247 (1981). For survey article on insurance, see 34 Mercer L. Rev. 177 (1982). For survey article on local government law, see 34 Mercer L. Rev. 225 (1982). For article surveying local government law in 1984-1985, see 37 Mercer L. Rev. 313 (1985). For article, "Defending the Lawsuit: A First-Round Checklist," see 22 Ga. St. B.J. 24 (1985). For annual survey of local government law, see 38 Mercer L. Rev. 289 (1986). For article, "Georgia Local Government Tort Liability: the 'Crisis' Conundrum", see 2 Ga. St. U.L. Rev. 19 (1986). For article, "The Fall and Rise of Official Immunity," see 25 Ga. St. B.J. 93 (1988). For annual survey of local government law, see 43 Mercer L. Rev. 317 (1991). For annual survey article discussing developments in education law, see 52 Mercer L. Rev. 221 (2000). For annual survey article on local government law, see 52 Mercer L. Rev. 341 (2000). For article, "Education Law," see 53 Mercer L. Rev. 281 (2001). For article, "Local Government Law," see 53 Mercer L. Rev. 389 (2001). For survey article on local government law for the period from June 1, 2002 to May 31, 2003, see 55 Mercer L. Rev. 353 (2003). For annual survey of administrative law, see 56 Mercer L. Rev. 31 (2004). For annual survey of construction law, see 56 Mercer L. Rev. 109 (2004). For annual survey of local government law, see 56 Mercer L. Rev. 351 (2004). For annual survey of local government law, see 58 Mercer L. Rev. 267 (2006). For survey article on insurance law, see 60 Mercer L. Rev. 191 (2008). For survey article on local government law, see 60 Mercer L. Rev. 263 (2008). For annual survey of law on insurance, see 62 Mercer L. Rev. 139 (2010). For annual survey on local government law, see 64 Mercer L. Rev. 213 (2012). For annual survey on local government law, see 65 Mercer L. Rev. 205 (2013). For survey article on local government law, see 67 Mercer L. Rev. 147 (2015). For annual survey on trial practice and procedure, see 67 Mercer L. Rev. 257 (2015). For article, "What's the 'Use': Vehicle Maintenance Liability Barred by Sovereign Immunity Amendment Intended to Promote Waiver," see 69 Mercer L. Rev. 651 (2018). For annual survey on local government law, see 71 Mercer L. Rev. 189 (2019). For note discussing some limitations on governmental tort immunity, see 5 Ga. St. B.J. 494 (1969). For note analyzing sovereign immunity in this state and proposing implementation of a waiver scheme and creation of a court of claims pursuant to Ga. Const., Art. VI, Sec. V, Para. I, see 27 Emory L.J. 717 (1978). For note on the 2002 amendment of this Code section, see 19 Ga. St. U.L. Rev. 243 (2002).

ANALYSIS

• General Consideration
• Waiver of Immunity
• Applicability

OPINIONS OF THE ATTORNEY GENERAL

County board of education may legally expend school funds for insurance coverage.

- If a county board of education, as a political subdivision of the state, operates a public library, the board could legally expend public school funds for the purchase of a tag for the board's book-mobile; the same would be true as to the expense of insurance coverage. 1958-59 Op. Att'y Gen. p. 131. But see Ray v. Cobb County Bd. of Educ., 110 Ga. App. 258, 138 S.E.2d 392 (1964).

- Judiciary of this state would find that the powers delegated to the Board of Regents do not include by clear implication the power to waive sovereign immunity by the contractual assumption of tort liability. 1965-66 Op. Att'y Gen. No. 66-261.

Hold harmless clause executed by the Board of Regents would be invalid and ultra vires. 1965-66 Op. Att'y Gen. No. 66-261.

Board of Regents may legally execute a hold harmless agreement, although the better practice would be to specifically exclude it where possible; if and when the clause is not excluded, the lessor should be notified that the Board of Regents does not consider such a clause binding upon the Board under Georgia law. 1965-66 Op. Att'y Gen. No. 66-261.

County is not liable for the negligent acts of the county's servants. 1969 Op. Att'y Gen. No. 69-131.

If county has purchased liability insurance, then the county is liable as provided to extent of this insurance coverage. 1969 Op. Att'y Gen. No. 69-131.

Negligent Vehicular Police Chase, 41 POF2d 79.

- Liability of municipality for tort in construction or operation of municipally owned railroad or street railway, 31 A.L.R. 1306.

Power of municipal corporation to take out liability insurance, 33 A.L.R. 717.

Liability of street railway company for injury to person in "safety zone,", 41 A.L.R. 376.

Liability of county for torts in connection with activities which pertain, or are claimed to pertain, to private or proprietary functions, 101 A.L.R. 1166; 16 A.L.R.2d 1079.

Construction and application of statute making municipal corporation liable for damages due to negligence of official or employee while operating vehicle, 136 A.L.R. 582.

Operation of garage for maintenance and repair of municipal vehicles as governmental function, 26 A.L.R.2d 944.

Application of financial responsibility or compulsory insurance laws to governmental vehicles or their operators, 87 A.L.R.2d 1224.

Validity and construction of statute authorizing or requiring governmental unit to procure liability insurance covering public officers or employees for liability arising out of performance of public duties, 71 A.L.R.3d 6.

Who is "named insured" within meaning of automobile insurance coverage, 91 A.L.R.3d 1280.

Liability of governmental unit or its officers for injury to innocent pedestrian or occupant of parked vehicle, or for damage to such vehicle, as result of police chase, 100 A.L.R.3d 815.

Tort liability of public schools and institutions of higher learning for accident involving motor vehicle operated by student, 85 A.L.R.5th 301.