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41 Cards in this Set
- Front
- Back
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canada has 3 systems of car insurance |
1. private insurance company - compete for business 2. mandatody gov't insurance - Crown Corps, can be supplemented by private insurance 3. Quebec - certain compulsory (injury) coverage is provided by gov't and certain by private insurers (property damage) |
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coverage in areas of canada |
private - Alta, NB, Nfld, NWterrs, NS, Nunavut, ON, PEI, Yukon gov't - BC, Man, Sask Quebec |
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why auto insurance is mandatory in CA |
1. you might decide not to fix your car but you have to fix a person you injured 2. gov't wants to know that you can pay to fix an injured person |
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no fault insurance |
ON, NB, Man, Sask, Que have no fault insurance |
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no fault insurance definition |
each drivers deals with their own insurance company in the event of an accident |
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why no fault insurance? |
speeds up claims process reduces legal costs ensures injured are helped without going to court |
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no fault insurance continued |
-replaced tort system with predetermined benefits. -amount payable for liability suits is limited and occasionally prohibited -each injury is worth a "set amount" -insurers decided that for small crashes they would cover their own customers no matter who was at fault |
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No fault plans in Ontario |
-bodily injury - liability suits allowed for non-monetary losses when insured meets a threshold -property - DCPD (direct compensation property damage) |
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No fault plans in NB |
Bodily Injury - lawsuits allowed for non-pecuniary losses. minor injury defined and capped damages Property - Direct Compensation (similar to ON) |
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No fault plans Quebec |
Bodily Injury - cannot sue ever Property - paid by own insurer according to degree of fault of other party (if other guy 100% liable you will be covered by his insurer) |
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Ontario - Threshold |
Threshold - the degree of injury that must be sustained to allow a civil action against an at-fault motorist DETERMINED BY COURT *neither the owner of vehicle, occupants or anyone present can be sued unless injured person: 1. died, 2. permanent serious disfigurement, 3. permanent impairment of physical, mental or psychological function |
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good and bad of no-fault |
the insured gives up right to sue for right to immediate and guaranteed payments/benefits but if it's your fault your premiums will go up |
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provincial insurance - govt |
-established by Automobile Insurance Act and Regs -no policy issued for basic compulsory coverage, automatic with registration of vehicle -car registn or operator's license evidence -Extension Policies by private insurers must be govt approved |
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gov't extension policies |
- provide coverage over & above basic compulsory gov't plans - used to increase limits and/or reduce deductibles - may be issued by gov't insurer or private insurer |
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MVR motor vehicle record |
- drivers abstract - record of driving convictions |
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facility association |
an entity established by the auto insurance industry to ensure that car insurance available to all owners and licsnd drivers of motor vehicles where such owners or drivers are unable to obtain car insurance through voluntary insurance market. (Alta, NB, Nfld & Lab, Nun, On, PEI, Yukon) |
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facility association |
- uninc. non-profit assoc of insurers - ensures availability of insurance and SHARES THE RISK EQUITABLY AMONG ALL INSURERS - all car insurers in the areas that the facility assoc. serves must be a member |
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facility association |
servicing carriers - issue policies & handle claims on behalf of association non-servicing carriers - not involved in day to day but still full members |
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accident benefits |
things that you get from your insurer when you are injured in a car accident |
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accident benefits |
any person who is injured in a car crash, or certain relatives or dependants may be eligible for benefits. no fault insurance has greatly enhanced benefits. compulsory everywhere except Nfld. |
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accident benefits |
quebec & manitoba - must claim under own policy because not permitted to sue On & Sask - suits permitted where threshold exceeded. Certain accident benefits can be increased for an additional premium |
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accident benefits - coverage |
-covers expenses arising out of injury or death as result of accident -not for property damage -must be direct result of car accident |
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accident benefits - coverage |
medical, rehab, funeral loss of income death benefit family protection endorsement (underinsured motorist protection) - provides benefits if other motorist has insufficient insurance or no insurance |
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family protection endorsement |
- injured party has right of action against responsible 3rd parties to collect damages in excess of the limit allowed under these coverages - provides coverage for you & family from action of at-fault, uninsured driver. covers you in other provinces |
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uninsured motorist coverage |
-all jurisdictions in CA (except territories) have HIGHWAY VICTIMS INDEMNITY FUND where victims of uninsured losses may recover for their loss -recovery primarily for bodily injury, but sometimes property damage |
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vehicle loss or damage |
vehicle loss/damage indemnifies insured against direct and accidental loss/damage to the vehicle itself: 1. collision or upset 2. comprehensive 3. all perils 4. specified perils |
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1. collision |
pays for losses caused when an insured vehicle is involved in a collision with another object, or rolls over |
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2. comprehensive |
covers losses other than those covered by collision (fire, theft, windstorm, vandalism, broken glass) |
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3. all perils |
combines collision and comprehensive coverage. also covers loss or damage caused by your vehicle stolen by: a person who lives in your home, an employee who drives, uses, services or repairs vehicle |
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4. specified perils |
fire, theft, lightning, windstorm, hail, rising water, earthquake, explosion, riot, aircraft falling, sinking, etc... |
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exclusions |
damage to tires - wear and tear mechanical breakdown voluntary parting with title (abandon) radioactive contaminationb contents of trailer property in trailer impaired driving (insured & permitted others) theft by person living in same house |
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what is not covered |
damage to property carried in or on the auto (except speakers which are part of car) damage to property owned, rented, or in the care, custody or control of insured |
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additional agreements |
temporary substitute vehicle legal liability for damage to avehicle in care of insured physical damage coverage must be bought on policy for own vehicle vehicle must qualify as "temporary substitute vehicle" within definition of policy loss of use by theft - replacement transportation provided |
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third party liability |
third party liability - things a third party gets paid for by YOUR insurer when you are at fault, the loss is above threshold, and you are sued. In ON, the minimum is $200 000 (higher recommended)(injury and property covered) |
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who is insured? |
named insured spouse & dependants named drivers in policy AND anyone else with consent to use/operate vehicle (express or implied) and passengers |
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liability coverage |
-obligations laid out in Highway traffic act ON which does not fully apply to private property -owner & driver liable unless vehicle stolen -if 2 cars involved, proving negligence is accusers responsibility -when an accident involves non-motorist, motorist must prove non - fault |
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Negligence |
failure to do what a reasonable person would do in the right situation |
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gross negligence |
reckless, wanton or wilfull misconduct indifference to the natural and probable consequences |
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motor vehicle liability - insurance cards |
pink card - serves as proof of third party liability |
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additional agreements of insurer |
investigate, negotiate and settle claims defend any civil action (provide lawyer, pay for legal fees above and beyond liability limit) any court costs including post-judgment interest out of pocket medical expenses |
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