RIBO CH 7 & 8

Purpose for Automobile Insurnace?

Protects drivers and vehicle owners from financial loss caused by vehicle damage, injuries, deaths, and liability to others

The Standard Automobile Policy Owner’s Form (SPF 1) coverages

Third Party Liability, Direct Compensation–Property Damage (DCPD), Physical Damage, and Accident Benefits.

Third Party Liability

Covers legal liability for injury, death, or property damage arising from automobile ownership, use, or operation. Minimum coverage and proof of insurance are mandatory across Canada

Direct Compensation–Property Damage (DCPD)

In Ontario, New Brunswick, Nova Scotia, and PEI; not-at-fault drivers claim qualifying vehicle repairs, contents damage, and loss of use from their own insurer

Physical Damage

Covers accidental direct loss or damage to the vehicle and attached equipment; it’s often optional but may be required for leased or financed vehicles

Accident Benefits

Provide medical, rehabilitation, income-loss, homecare, funeral, and survivor benefits without waiting for liability to be settled

The Facility Association provides

Residual-market coverage for higher-risk drivers who can’t obtain insurance in the regular private market

Canadian delivery models

BC, Manitoba, and Saskatchewan use Government/Crown insurance; most other provinces and territories use private insurers

Quebec Auto Insurance

Uses a combined model—government bodily-injury coverage and private property-damage coverage. Its no-fault bodily-injury plan compensates accident victims regardless of fault, while private insurers handle property damage

No Fault Insurance

Coverage pays for some or all the insured person’s loss regardless of who caused that loss. You deal with your own insurance company

Where are you covered under OAP1?

Canada & USA

Under OAP1, “Automobiles” include

Snowmobiles, Described automobiles, Newly acquired autos, Temporary substitute auto, Other autos & Trailers (in certain circumstances)

Who is covered under OAP1?

Spouse, Same-sex Partner, & Dependants

When a change in driver info, ownership & change in vehical happens, the insuered has

7 days

What does “OAP” stand for?

Ontario Automobile Policy

Auto Claims must be paid

within 60 days

Section 1 of OAP1 outlines

General conditions, responsibilities, definitions, and exclusions

Section 2 of OAP1 outlines

Types of automobiles covered

Section 3 of OAP1 outlines

Liability coverage

Section 4 of OAP1 outlines

Accident Benefits

Cancelling insurnace (by the insured)

Can happen anytime by giving notice, return premium is short-rate basis, minimum retained premium is not refundable

Cancelling insurnace (by the insurer)

Within first 60 days of issuance for reasons filed with gov. regulator.

Cancellation after 60 days (by the insurer)

Can only cancel due to nonpayment, false paticulars of auto, misrepresentation and material change in risk

Is auto insurance mandatory in Ontario?

Yes

How can insurers change standard OAP 1 coverage?

Only through approved endorsements

What is Ontario’s minimum third-party liability limit?

$200,000.00

What does liability coverage protect against?

Legal responsibility for injury or property damage caused by negligence

What costs may liability coverage include beyond damages?

Legal defence costs

What are Accident Benefits?

No-fault benefits for people injured in automobile accidents.

What income replacement benefit is described?

70% of income, up to applicable limits

Three types of Accident Benefits

Income replacement; medical and rehabilitation; attendant care

Who may receive higher Accident Benefits?

People with catastrophic injuries

Auto policy exclusions

Illegal or unauthorized use, racing, criminal use, or use by an excluded driver

Are personal belongings in the vehicle covered under liability coverage?

No

What is the bodily-injury lawsuit threshold?

A legal standard that must be met before certain injury lawsuits can proceed

What is direct compensation for property damage?

Where an insured may recover qualifying vehicle damage from their own insurer

Legal Liability arises out of:

The ownership, use or operation of a described automobile and/or use or operation of certain other autos

Who has the insurable interest in an Auto policy?

Registered Owner(s) only

Pecuniary Losses

Cost of future care, loss of earning capacity, and can be quantified with evidence (e.g. receipts, proof of loss of income)

Non-Pecuniary Losses

Intangible losses that affect the quality of life; pain and suffering, loss of amenities and enjoyment of life, loss of life expectancy (must meet a threshold of injury)

All vehicle owners must

Purchase minimum liability coverage of $200,000.00

Burden of Proof (between 2 motorists)

Falls on the plaintff

Burden of Proof (between motorist & pedestrian)

Falls on the defendant