Of all the types of car insurance coverages available, accident benefits coverage is the one that’s specifically designed to protect you. If the worst should happen, and you find yourself the victim of a car accident, you may need to take time off work to recover, seek out medical treatments, or make adjustments to a new way of life. These situations can lead to significant financial strain, adding further stress during an already difficult time.
Fortunately, this is where accident benefits coverage comes in. It provides financial support for things like medical expenses, lost wages, rehabilitation, and more, ensuring you’re taken care of when you need it most.
In this article, you’ll learn more about what accident benefits coverage is, what it covers, which provinces and territories make it mandatory, and more.
What is accident benefits coverage?
Accident benefits coverage, sometimes referred to as “Section B” in certain provinces, provides financial compensation to individuals who are injured or killed in a car accident. Depending on where you live in Canada, accident benefits coverage may be automatically included when you buy car insurance, offered as an optional add-on, or provided as part of your public car insurance plan.
The purpose of this coverage is to help cover the expenses that victims of car accidents may incur during their recovery, as well as provide support for their families in the unfortunate event of death. Below are some examples of what accident benefits coverage may cover:
- Income replacement for lost wages
- Private medical services and treatments (ex. physiotherapy, chiropractic care, massage therapy)
- Rehabilitation services (ex. vocational therapy, psychological counselling, speech therapy)
- Medical supplies, devices, and equipment (ex. mobility aids, prosthetics)
- Funeral expenses in the unfortunate event of a fatality
While the types of expenses covered are generally similar, the specifics of eligibility and compensation can vary by province. Each province establishes its own rules regarding how much compensation is provided and under what conditions. For instance, in Ontario, the Statutory Accident Benefits Schedule (SABS) outlines the framework insurers use to determine the benefits an injured party may receive.
Is accident benefits coverage mandatory?
Yes, accident benefits coverage is mandatory across most of Canada. Drivers in provinces and territories where it is available can receive financial compensation for eligible expenses, such as medical costs and lost income, up to the limits of their car insurance policy.
Provinces where accident benefits coverage is mandatory
Meanwhile, Quebec, British Columbia, and Manitoba have government-run public car insurance systems that include accident benefits in some form, regardless of fault. For example, Quebec offers accident benefits through the SAAQ (Société de l’assurance automobile du Québec). This coverage helps drivers recover from accidents by compensating them for their financial losses, such as lost income, private healthcare expenses, rehabilitation costs, medical supplies, and in-home assistance.
The two remaining provinces have different systems. Newfoundland and Labrador follows a tort system, where drivers can either purchase accident benefits coverage through a private insurer or seek compensation from the at-fault driver’s insurance. In Saskatchewan, through the public car insurance plan, the default is no-fault coverage, but drivers can opt for a tort-based plan instead.
Who is eligible for accident benefits?
Accident benefits are designed to provide financial support for all those who may be involved in a motor vehicle accident, whether you’re the driver, a passenger, a cyclist, or a pedestrian.
Generally speaking, if you have your own car insurance policy, you’ll typically claim accident benefits from your own insurer, even if you weren’t driving at the time of the accident (for example, if you were a passenger or a pedestrian). If you don’t have insurance, you may be able to claim accident benefits through the policy of the driver who caused the accident.
That being said, eligibility for accident benefits, as well as the process for receiving them, can vary by province or territory. Always check the regulations in your area to fully understand your coverage and rights.
What is the limitation period for accident benefits?
Since the effects of a car accident may not be immediately apparent, you generally have a set period of time, typically two years, from the date of the accident to file a claim for accident benefits. However, the specific limitation period can vary depending on where you live in Canada. For instance, in Ontario, Alberta, and Saskatchewan, the limitation period is two years from the date of the accident, while in Quebec, it’s three years.
In any case, it’s important to report your injuries as soon as possible. Delaying your claim could complicate your eligibility or the compensation process, so prompt reporting is always key.