Hayley Kai Fundementals - Chapter 13

There are four sections of liability coverage in an automobile policy :
1) Section A- third party liability
2)Section B- accident benefits
3)Section C- Loss or damage to insured automobile
4) Section D - Uninsured and unidentified automobile coverage

Only saskatchewan and manitoba require physical damage by legislation. But mortgagees on loans using insist on it

The insurers will idemnify the insured against direct and accidental loss/damage to insured automobile and equipment under this section
* this is regardless of fault

there are four coverage options available :
1) all perils - from all perils : this is the only option that covers theft from person residing in same dwelling and theft from employee or service regardless of hours of operation
2)coillison or upset- caused by collision with another object or upset - only covers when loss caused by COLLISION with object ( tree, fence)
3) comprehensive - from any peril other than collision by object or upset : specifically excludes vehicle which insured auto is attached to (trailer jacknifng) and surface of ground and objects in or on it ( pot holes , signs)
4) specified perils - limited list that usually is used for vehicles in storage

a) most provinces will not pay for : damage caused by sucide or attempted suicide
or insured who is under workers comp plan
b) will not provide medical payments/ loss of income payments if: convicted of impaired driving , or not authorized by law or qualified to drive

One which causes bodily injury / death to an insured by actual contact of auto to auto occupied by insured. Must prove:
1) identity of either owner or driver of auto can not be ascertained
2) it is reported to authorities within 24 hours
3) filed statement under oath with in 30 days
4) insured occupied auto available to insurer for inspection

one with neither driver nor owner has applicable / collectible bodily injury liability

legislation requires auto owners be provided with accident benefits on a "no fault basis " ( benefits paid regardless of fault)
* payments in this section are nominal and not intended to indemnify victims for injuries

a) insured
b) insured spouse
c) dependent family members
d) occupants of vehicle
e)pedestrians ( limited coverage)

subsection 1- medical and funeral expenses
subsection 2-death benefits and loss of income payments
loss of income payments- weekly basis , subject to 72 hour hold, must prove that were employed at time of accident, benefits cease after 104 weeks
subsection 3- uninsured motorist coverage- when driver of uninsured /unidentified auto causes bodily injury to an insured, the insureds policy will pay what the guilty parties should have if they were insured

finical responsibility laws require owners to purchase min 200,000 third party liability insurance
proof of this insurance can be
1)pink card (inter province certificate)
2) certificate of vehicle registration
the minium liability insurance must be increased when auto transports goods/ passengers for comp
no deductible is applied to losses in section A

coverage is provided to :
1) named insured
2) anyone who drives auto w/ consent of named insured
3) anyone who operates PART of auto w/ consent of named insured ( door , trunk , hood)

no coverage when :
a) no liability would impose on workers comp law
b)bodily injury to insured employees from operation/repair
c) damage of property of others in insureds care , while in or on auto

when total claim for bodily injury / damage reaches the min $200,000, 80-90% ( depending on province) of limit is reserved for bodily injury

when two coverage options ( of the 4) are purchased a different deductible may be selected for each ( ex. collision $400, comprehensive $300)
* not applied to fire, lightening, theft of entire vehicle or widlfire collision

not covered:
1)loss or damage to : tires, mechanical breakdown, rusting corrosion , wear/tear
2) contents of trailers or rugs/robes
3) tapes or equipment for tape player/recorder
4) driving /operating vehicle when under influence or convicted of not taking test

a) insurer extends damage coverage to : general average , salvage, fire department charges, custom duties of canada/usa
b) insured will waive suborgation against : those who insured has consented use of auto, UNLESS people garaging, breach of policy or convicted of DUI
c)indemnifies insured , or other person who drives temp substitute auto from liability
d) loss of use by theft - only covers theft of entire auto - $25 a day for 30 days w/ 72 hour waiting period

The person insured in an unidentified/uninsured ( can be inadequate coverage) depends on the loss.
remember that in accident benefits the INSUREDS policy would pay for the liability of the uninsured
physical damage to insured auto=auto owner
loss/damage to contents of insured auto= owner of contents
injury/death in insured auto or pedestrian = insured/spouse/dependent
injury/ death while in any other vehicle = insured/ dependent

a) physical damage to insured auto loss/damage to contents- only when caused by UNINSURED . Unidentified vehicle is covered under section C . $250 deductible
b) bodily injury / death - insurer pays all sums

1) amount paid by insurer can not exceed the min statutory limit of liability ( gov. 200,000)
2) Injury / damage occurring in another province/state = insurer pays either min limit of that jurisdiction or min limit of insureds jurisdiction . which ever is less
3) insurer is not liable when accident is in another jurisdiction when the insured has a valid claim w/ that jurisdictions " unsatisfied judgment fund" or similar fund ( the insures that write auto policies pay into a pool to insure those that have no insurance )

a) written claim to insurer within 30 days
b)deliver fully detailed proof of loss with in 90
c) when requested provide medical report
d)provide details of other insurance policies ( except life ) to insurer
** Insurer has the right to arrange for one or more physical/mental exams while claim is pending