Anybody involved in a motor vehicle accident would like to know more about Accident Benefits.
Let us understand the standard limits for all accident benefits according to Ontario’s Statutory Accident Benefits Schedule (SABS). Policyholders have the option of purchasing optional benefits that can modify or increase their available coverage under SABS.
What is covered under accident benefits in Ontario?
All standard Ontario auto insurance policies are required to provide accident benefits coverage in accordance with the Statutory Accident Benefits Schedule. Accident benefits involve mandatory coverage that can be applied for immediately after someone is injured in an accident. The benefit can apply to drivers, passengers, pedestrians, and bystanders, regardless of who is at fault. In view of the absence of a fault requirement, we sometimes refer this system to as the “no-fault accident benefits system”.
Accident benefits in Ontario cover attendant care expenses. This personal benefit should cover all the expenses for an attendant or long-term care facility if a claimant is unable to perform daily activities such as bathing, toileting, dressing, and feeding due to the injuries sustained in the accident. The maximum standard coverage for attendant care benefits is $65,000. Medical and rehabilitation costs cover expenses related to medication and rehabilitation. For example, treatment may include physiotherapy, massage, etc. caused due to the injuries.
Coverage for non-catastrophic injuries is $65,000 and for catastrophic injuries it is $1,000,000. You could opt for additional coverage from your insurer to be covered up to $2,000,000 for catastrophic impairment and up to $1,000,000 for non-catastrophic injuries.
Caregiver expenses: This benefit ensures that your household expenses are accounted for in the event you are the primary caregiver in your family and the injuries sustained after the car accident have made it impossible for you to continue providing for your loved ones. Limits are set to cater for various costs. For example, you will get $250 per week to look after the first dependent, and for each subsequent dependent in the household, you will be paid an additional $50 per week.
Income replacement benefit: Under this benefit, those individuals who are unable to work due to injuries sustained after the accident, can be compensated for the loss of income. It has a limit of a maximum of 70% of your gross weekly pre-accident income or $400 per week, whichever is less.
Death and funeral benefits: In case the accident results in death, a lump sum pay-out is given to the spouse and dependents to cover the funeral expenses with few limits. A maximum of $25,000 will be paid to the spouse and $10,000 to a former spouse who the insurer was supporting financially.
Non-earner benefits: If the insured person does not qualify for income replacement benefit but suffers a complete inability to lead a normal life, he or she may still be eligible for the non-earner benefit. This benefit is meant to benefit students who are unable to carry on with their normal life because of the accident.
Accident benefits may also provide coverage for other expenses such as lost educational expenses, transportation costs, housekeeping and home maintenance costs. However, mandatory accident benefits coverage available under most standard auto policies is limited. Hence, it is recommended that one speaks to the auto insurer about purchasing optional benefits that can increase your coverage and sufficiently protect you and your family from the significant medical expenditure and financial stress that a serious motor vehicle accident can cause.
