Automotive

What's the purpose of Statutory Accident Benefits on everyone's insurance policy?

  • Last Updated:
  • Apr 17th, 2016 11:50 pm
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[OP]
Deal Addict
Jan 16, 2016
1468 posts
1123 upvotes
Hamilton, ON

What's the purpose of Statutory Accident Benefits on everyone's insurance policy?

From - https://www.fsco.gov.on.ca/en/auto/broc ... toins.aspx
Third-Party Liability Coverage:
This section of your automobile insurance policy protects you if someone else is killed or injured, or their property is damaged. It will pay for claims as a result of lawsuits against you up to the limit of your coverage, and will pay the costs of settling the claims. By law you must carry a minimum of $200,000 in Third-Party Liability coverage but options exist to increase the minimum amount.

Statutory Accident Benefits Coverage:

This section of your automobile insurance policy provides you with benefits if you are injured in an automobile accident, regardless of who caused the accident, including supplementary medical, rehabilitation and attendant care, caregiver, non-earner and income replacement benefits. Options exist to increase most of these coverages.
Why do we need Accident Benefits at all then if we can just sue the at-fault party, and the at-fault party's insurance will pay under their Third-party? Or, why do people top up their Accident benefits? Just curious with these new changes going into effect on June 1 in Ontario.
6 replies
Deal Addict
Aug 20, 2007
1934 posts
715 upvotes
Kitchener
The reason for AB is that it covers you immediately for any damages regarding medical or loss of income. If we still had tort in the system then under your premise we would need to sit for 12, 24, 36 month before any benefits that would come out of the at fault party liability coverage. It would be the same example for collisions if we didn't have DCPD coverage on our policies. Imagine having to sue the other party to have your car fixed? How long would that take and how inconvenient would it be?
Newbie
Feb 5, 2014
39 posts
14 upvotes
Toronto, Ontario
Statutory accident benefits are available to anyone involved in an accident involving a motor vehicle regardless of fault.

This is key - you can only sue if you are not at fault.

Without accident benefits, if you are hurt in an accident that you caused, you will get nothing for lost income and medical expenses.

It's mandatory for your own protection.
I am not providing legal advice or services for your particular situation and no solicitor-client relationship exists. You are advised not to post confidential information on a public forum and to seek a lawyer for advice on your particular situation. My goal is to explain legal rights generally.
[OP]
Deal Addict
Jan 16, 2016
1468 posts
1123 upvotes
Hamilton, ON
Seems really silly that your liability (standard limits) to someone else is greater than your own protection. But then again the likelihood of it getting to 1 million is slim.
Deal Addict
Aug 17, 2008
4127 posts
929 upvotes
Sask.
In SK you get the choice of no fault or tort - have to weigh the decision.
Deal Addict
Feb 18, 2016
1808 posts
527 upvotes
natalka wrote: In SK you get the choice of no fault or tort - have to weigh the decision.
Interesting... is there a cost difference in general? No fault would be more I guess?
Deal Addict
Aug 17, 2008
4127 posts
929 upvotes
Sask.
No cost difference - and you can up coverage with either if you want to pay more. The vast majority of people have no fault since it's the default, you have to change it to tort if that's your choice.

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