The A, B, C’s and D’s of the Automobile Insurance Policy

Posted on Thursday, May 12, 2011 by Colin Feltham
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I suspect that most people who purchase an automobile insurance policy never read it over. Who could blame them? It’s not exactly an easy read. Navigating an automobile insurance policy after you have had a motor vehicle accident can be frustrating and difficult.

Like any policy, an automobile insurance policy is a special contract with an insurance company. In exchange for the premiums you pay, the insurance company agrees to provide you with the benefits or “coverages” that are listed in the technical language of the policy.

While this is not an exhaustive explanation of all of the benefits or coverages provided by the standard automobile policy for Newfoundland and Labrador, it is intended to provide a basic overview.

The automobile policy has four sections – A, B, C and D.

Section A, or Third Party Liability, is a coverage that is mandated by law. If you are going to operate an automobile in Newfoundland and Labrador, it must be insured with Section A coverage. If you were injured in a motor vehicle collision that was not your fault, you can seek compensation that would be paid from the at-fault driver’s Section A coverage. Everyone must carry at least $200,000.00 in Section A coverage by law.

Section B, or Accident Benefits, provides payments for medical, rehabilitation (including physiotherapy, massage therapy, chiropractic therapy and prescription drugs) and even funeral expenses to the driver and occupant(s) of a vehicle involved in a motor vehicle accident. It also provides for loss of income payments in certain instances and for death benefits where a motor vehicle collision results in a fatality. Section B- Accident Benefits are available to drivers and occupants of vehicles where the coverage is applicable regardless of whether the accident was the fault of the vehicle’s driver or another driver on the roadway. In Newfoundland and Labrador, though, Section B – Accident Benefits is an optional coverage. In fact, we are the only province in Canada where the coverage is optional. In my experience, most people don’t know whether they have Section B coverage as part of their policy until they are involved in a motor vehicle accident and sustain an injury. A little known fact is that if you were struck by an automobile as a pedestrian you can actually take advantage of any Section B coverage in place on the vehicle that struck you.

Section C insures your automobile for loss or damage to the vehicle itself regardless of whether the motor vehicle accident that caused the damage was your fault. This is another optional coverage. Most people who own newer model vehicles will carry Section C coverage. For those with older model vehicles it often isn’t economically feasible given the depreciation in vehicle value with time versus the cost of the premiums.

Section D forms part of every automobile insurance policy issued in Newfoundland and Labrador. It provides for payment for injuries and property damage you sustain in an automobile accident that is caused by a vehicle that is either uninsured or is unidentified (e.g., in a hit-and-run scenario). The maximum coverage available under Section D is $200,000.00.

If you have been injured in a motor vehicle accident and you have questions or need help understanding your insurance and compensation rights, make the call to Roebothan McKay Marshall. We are here 24 hours a day, seven days a week. And it costs you absolutely nothing to speak with one of our experienced personal injury lawyers.