How might someone prove financial responsibility for a vehicle?
- inter-province motor vehicle liability insurance certificate (pink card)
- certificate of vehicle registration
Accident benefits may include:
- medical payments
- funeral expenses
- disability income
- death benefits
- dismemberment/permanent impairment benefits
What information is on the S.A.F 1? (13)
- applicant’s full name and postal address
- policy period
- vehicle particulars
- insuring agreements
- list of all drivers of the vehicle
- physical/mental impairment
- driver’s history
- license history (6 years)
- insurance history (3 years)
- use of automobile
- business use
- ownership declaration
- penalty/false statement
additional information to be provided to insurer
- if purchased by the applicant, whether it is new, used, date and value (including equipment)
- name and address of any lienholder or mortgagee
Three coverages available to insured under the insuring agreements (four in atlantic canada)
A- TPL
B- Accident Benefits
C- Loss of or Damage to Insured Automobiles
D- Uninsured and Unidentified coverage (atlantic canada)
What information is required for the list of driver’s?
- name of all drivers
- approximate percentage of use of the vehicle
- number of years licensed
What information is required for driver history?
- convictions history (3 years)
- accident and claims history (6 years)
The use of the automobile will directly affect the premium charged. Applicant must declare:
- purpose for which vehicle is being used
- whether it is being used to commute, and the distance if so.
The insurer must be advised when the vehicle is being used for these business purposes:
- rented/leased to others
- carrying passengers for compensation or hire
- carrying explosives or radioactive materials
- carrying goods for compensation
Penalty for False Statement:
The right to recovery under the policy will be forfeited when the insured:
- provides false description of insured automobile to the prejudice of the insurer
- knowingly misrepresents the risk or fails to discuss required fact
- breaches policy term
- commits fraud
- willfully makes false statement with regards to a claim.
pure no fault plan
removes right of legal action against owners/drivers who cause injury or death to others. (MB)
threshold no fault plan
legal action against responsible party not permitted unless a “threshold” met. May be monetary or relate to the severity of the injuries.
Who is insured on an S.P.F 1?
- named insured
- everyone else who personally drives the vehicle with express consent of the named insured
- everyone who personally operates a part of the vehicle with express consent from named insured.
5 exclusions to third party liability
- any liability which falls under WCB
- loss/injury/death of any employee of insured operating/repairing vehicle
- loss/damage to any property carried
- any amount in excess of the limits stated
- any liability arising from contamination of property carried in the automobile
Agreements of Insured
- insured “constitutes and appoints the insurer as his irrevocable attorney”
- insured also agrees to reimburse insurer for any amounts paid under the policy which the insurer would not otherwise be liable to pay under the policy
Exclusions to accident benefits
- any person convicted of an impaired driving offence or while the ability to drive is impaired by alcohol or a drug
- any persons driving who are neither authorized or qualified
4 physical damage coverage options
- all perils
- collision/upset
- comprehensive (exclusing collision/upset)
- specified perils
Coverage C - no deductible applied for losses caused by:
- fire
- lightning
- theft of entire vehicle
- collision with wildlife
Exclusions to coverage c
- loss/damage to tires
- caused by conversion, embezzlement, theft, or secretion of any person in lawful possession of the vehicle under a mortgage, conditional sale, lease, or other agreement
- caused by voluntary parting with the title or ownership, whether or not induced to do so by any fraudulent scheme, trick, or false pretense
- caused by contamination of radioactive material
- contents of trailers or to rugs or robes
- tapes when detached
- where the insured drives or operates vehicle while under the influence (g)
- where the insured permits, suffers, allows or connives at the use of the vehicle by persons contrary to the provisions of g
situations where the insurer would not waive its right of subrogation
- those having possession for the purposes of garaging
- those who have breached policy conditions
- those convicted of alcohol related offence at the time the damage was caused
loss of use by theft coverage is subject to the following:
- reimbursement up to $25 per day for maximum of 30 days
- payment made only for costs incurred to rent a substitute vehicle, taxicab, or bus fare.
- 72 hour waiting period applies
when injury/damage is caused by uninsured or unidentified vehicle, payment is made subject to these guidelines:
- payment will not exceed the minimum statutory limits of liability insurance required in that province
- when injury/damage occurs outside of that province, insurer is liable for least of the minimum in either the home or away province
- insurer not liable when accident happens in another jurisdiction covered by an unsatisfied judgement fund or other similar fund
- when other insurance exists, the amount paid by the agreement will be reduced so as not to exceed the max limits provided under this agreement
the right of insured to recover damages and the amount of such damages shall be determined by any of the following methods:
- written agreement between claimant and insurer
- when requested by claimants, and agreed to by insurer, by arbitration
- the court
the following steps must be completed when making a claim for bodily injury/death
- provide insurer with written notice within 30 days of the accident
- deliver fully detailed proof of loss within 90 days of the accident
- provide insurer with medical cert describing cause and nature of the accident and the probable duration of any disability
- provide insurer with details of other insurance policies under which benefits may be received
