Vehicle Occupant Insurance: Who And What Is Covered?

Vehicle occupant insurance, also known as passenger insurance, is an additional insurance policy that can be taken out with a car insurance policy. It covers the driver and passengers in the event of death or permanent disability, paying a fixed amount to the injured party or next of kin. This amount is agreed upon in advance and is paid regardless of who is at fault for the accident. The insurance also covers occupants when they are getting in and out of the car or making emergency repairs. However, material damage is not covered under occupant insurance and requires separate insurance.

Accidental occupant insurance

Vehicle occupant insurance is an additional insurance policy that can be taken out with a standard car insurance policy. It covers the driver and passengers in the event of an accident resulting in death or permanent disability. The amount paid out is fixed and agreed upon in advance in the policy, with no relation to the actual damage suffered.

Coverage and Benefits

• Death: In the unfortunate event of a fatality, the insurance policy will pay a predetermined and agreed-upon sum to the deceased's next of kin. This ensures financial support for the family during their time of grief.
• Permanent Disability: If an occupant suffers a permanent disability due to the accident, the insurance provides a fixed payout to help cover the costs of long-term care, adaptations, and loss of income.
• Getting In and Out of the Vehicle: The insurance coverage applies not only when occupants are inside the vehicle but also during the process of entering or exiting the car.
• Emergency Repairs: If you need to make emergency repairs on the road, accidental occupant insurance has you covered. This includes situations where you may need to change a tire or perform minor repairs to get back on the road.
• No-Fault Compensation: One of the key benefits of accidental occupant insurance is that it provides compensation regardless of who is at fault for the accident. Even in situations where there is no guilty party, such as a collision with an animal, the insurer will pay the agreed-upon compensation.

Exclusions and Limitations

While accidental occupant insurance provides valuable coverage, it's important to be aware of certain exclusions and limitations:

• Material Damage: Accidental occupant insurance typically does not cover material damage, such as damage to the vehicle or personal property inside it. For this type of coverage, you would need to take out a separate damage insurance policy.
• Psychological Injury: Most accidental occupant insurance policies do not cover psychological or emotional injuries resulting from the accident. This type of coverage may be included in more comprehensive insurance packages.
• Underinsurance: If there are more passengers in the vehicle than the number of insured seats, the underinsurance rule may apply. This could result in a reduced payout for each occupant.
• Pre-existing Conditions: Pre-existing medical conditions or injuries that were not directly caused by the accident are generally excluded from accidental occupant insurance coverage.

Passenger indemnity insurance

Vehicle occupant insurance is an additional insurance policy that can be taken out with a car insurance policy. It covers the driver and passengers in the event of an accident, including permanent disability or death. It also covers property damage, such as damage to luggage or clothing.

• Property damage (e.g. clothing, luggage, etc.)
• Loss of earnings
• Household help
• Transport costs
• Medical costs
• Compensation
• Funeral costs

The maximum insured amount per event for all insured persons is usually around 1 million euros.

Uninsured Automobile Coverage (UAC)

In Ontario, UAC is mandatory and included in the standard auto insurance policy, with a minimum coverage limit of $200,000. However, drivers have the option to increase this limit for additional protection. It's important to note that UAC specifically covers bodily injury and not property damage. For the latter, separate coverage can be purchased.

UAC can be a financial lifeline in several scenarios. Firstly, it applies in cases of negligence by an uninsured driver, where the injured party can make an insured claim through the UAC provisions. Secondly, in hit-and-run accidents, where the at-fault driver flees the scene and their identity is unknown, UAC provides compensation for the victim. Lastly, UAC is crucial when an insured vehicle is driven without the owner's consent, and an individual is injured as a result.

To successfully make a UAC claim, certain requirements must be met. These include providing written notice of the claim within 30 days, or as soon as possible, and supplying details of the claim, including information about the accident and losses, within 90 days. It's also important to disclose any other insurance coverage the claimant may have access to.

UAC serves as a safety net, ensuring that individuals involved in accidents with uninsured or underinsured drivers have access to financial assistance for their injuries and losses.

Underinsured Motorist Coverage (OPCF-44R)

The OPCF-44R endorsement is often referred to as Family Protection Coverage as it covers not only the policyholder but also their spouse, common-law partners, dependent relatives, and children under the age of 18 listed on the auto insurance policy. This coverage applies regardless of whether the insured individuals were in the car at the time of the accident and extends to injuries sustained as a driver, passenger, cyclist, or pedestrian.

In the unfortunate event of a collision, if the at-fault driver's liability limits are insufficient to cover your claim, the OPCF-44R endorsement allows you to claim the difference from your own insurance company, up to your third-party liability limits. For example, if the at-fault driver has a policy limit of $1,000,000 and your third-party liability limit is $2,000,000, you can claim up to an additional $1,000,000 from your own insurer.

It is important to note that to make a claim under the OPCF-44R endorsement, your third-party coverage should be greater than that of the at-fault driver. Additionally, there is a time limit for making a claim, which is typically 12 months from the date of the accident or when the claimant becomes aware that their claim exceeds the underinsured third-party liability coverage.

The cost of adding this endorsement to your policy is generally minimal, ranging from $11 to $36 per year, depending on your profile, coverage requirements, and insurance provider.

Occupant damage insurance

The coverage provided by occupant damage insurance applies when occupants are inside the vehicle, as well as during the process of getting in and out of the vehicle, and when performing emergency repairs on the road. It is important to note that this type of insurance does not cover material damage to the vehicle itself. For this, separate vehicle damage insurance would be required.

In summary, occupant damage insurance provides financial protection for drivers and passengers in the event of an accident, covering personal injuries, property damage, and other related expenses. By having this insurance, occupants can have peace of mind knowing that they will receive immediate compensation, regardless of who is at fault, up to the maximum insured amount specified in the policy.

Frequently asked questions