Major sections in the Standard Automobile Insurance Policy

In New Brunswick, the Financial and Consumer Services Commission has approved a Standard Automobile Insurance Policy. This means that every insured vehicle in New Brunswick has, at the very least, the same minimum coverage. There are 5 major sections in the Standard Automobile Insurance Policy. We are explaining these sections below:

  1. Section A – Third Party Liability

This section is commonly known as “public liability and public damage (PLPD)”. This Section of your car insurance policy is to cover you as owner and driver in the event that you injure someone or you damage property because of negligence. The minimum Section A coverage in New Brunswick is $200,000, but most people are insured for $1,000,000 or more. If you cause injuries or damage property for more than the Section A coverage of the vehicle you are driving, you are liable for the excess damages. If you injure someone or you damage property because of your negligence, your insurance company is required to cover you for the injuries or damages you caused. Your insurance company is also required to defend you in the event that a lawsuit is filed against you.

  1. Section B – Accident Benefits

This section is commonly known as “no-fault benefits”. Every single insured vehicle in New Brunswick has the exact same Section B benefits. You cannot forfeit this type of benefit or add to it. You can have access to these benefits if you’re involved in any type of accident, whether you’re at fault or not. Section B benefits cover medical and rehabilitation expenses, funeral benefits, death benefits, and loss of income benefits for the driver and passengers of the vehicle. A pedestrian that is hit by a vehicle can have access to the Section B benefits of the vehicle that hit him or her.

The maximum amount you can receive for your loss of income under Section B is 80% of your lost wages up to a maximum of $250 per week. These benefits are called “weekly indemnity” benefits. You can qualify for these benefits if:

a) you were employed at the time of the accident (even if you were not employed at the time of the accident, you may be deemed employed under certain conditions); and,

b) you suffered substantial inability to perform the essential duties of your occupation for 7 days out of the first 30 days from your accident.

You can receive these benefits for a period of two years following your accident if you meet the conditions above and you suffer substantial inability to perform the essential duties of your occupation or employment.

  1. Section C – Loss of or damage to insured automobile

You have a choice to make for Section C coverage when buying car insurance. You can choose to forgo Section C coverage or either cover your vehicle from:

  • “All perils”: this coverage combines all perils, collision and comprehensive
  • Collision or upset”: this coverage pays for damage to your vehicle caused by a collision with another object or by upset)
  • Comprehensive”: this coverage includes specified perils but also pays for all other insured damage caused to your vehicle (e.g., fire, theft, vandalism), except for collision or upset.)
  • Specified perils”(this coverage pays only for losses caused by perils specifically listed in the policy). You can also choose to have a deductible and what amount.
  1. Section D – Uninsured Automobile and Unidentified Automobile Coverage

This Section is meant to cover you if you suffer injuries in a car accident and the vehicle of the at-fault driver is not insured or the other driver leaves the scene in a hit-and-run. As the at-fault party does not have insurance or cannot be identified, you are unable to file a claim for your injuries which would be covered by the other vehicle’s Section A insurance. Section D is there to cover you in this specific circumstance.

  1. SEF 44 – Family Protection Endorsement

This coverage is meant to protect you or your family members if you are injured because of another driver’s negligence and the other driver does not have enough insurance to cover your losses. Usually, your SEF 44 coverage is the same as your Section A coverage. Here is a practical example for SEF 44 coverage: you are rear ended by someone who has $200,000 in Section A coverage, you have an SEF 44 of $1,000,000, and you have damages worth $500,000 – in this situation, the other driver’s Section A would pay $200,000 and your own SEF 44 would pay you $300,000 to cover your total loss of $500,000.

Cantini Law|Droit has been helping clients who have suffered injuries from car accidents for over 30 years. Our dedicated team will provide the expert support you can count on throughout your claim. Contact Us today for your free consultation at 1-844-CANTINI. Get your free copy of our Injury eBook now for more information.

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