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In Quebec, certain compulsory coverages are provided only by the government plan and certain other compulsory coverages are provided only by private industry.
Basic compulsory coverage that must be carried by every motorist includes: Third Party Liability which must be purchased from a private insurer and Accident Benefits which must be purchased through the government plan. In Quebec, the government insurer provides Accident Benefits coverage to every automobile owner.
Third Party Liability insurance is designed to provide protection for the liability imposed by law upon the insured person for bodily injury or death of any persons or damage to their property arising out of the ownership, use or operation of an automobile.Quebec has a no-fault system of automobile insurance which means that the cost of any damage to an insured's automobile is recovered from the insured's own insurer even if another motorist is responsible for it. This is referred to as direct compensation. Responsibility is determined on the basis of fault charts which have been provided through legislation.A minimum limit of Third Party Liability insurance is mandatory in all provinces and territories but the amounts are not all the same. No coverage may be granted to insure for less than minimum limits. In Quebec, the minimum limit for Third Party insurance is $50,000.Quebec legislation prohibits law suits against negligent third parties for bodily injuries arising out of automobile accidents. Instead, schedules of no-fault benefits have been devised which are paid by the government.The law also provides for priorities of payment in case the amount of insurance is not sufficient to satisfy claims arising out of one accident. Priorities of payment specify how much of the total policy limit will apply to bodily injury claims and how much will apply to property damage claims in situations where there is not enough insurance to cover all the combined claims. In Quebec, the allocation is as follows: $45,000 for Bodily Injury* and $5,000 for Property Damage.* Since bodily injury claims resulting from motor automobile accidents in Quebec are dealt with through the government plan, Third Party Liability coverage under this policy would only be claimed against in instances where the Automobile Insurance Act does not apply, such as accidents outside the province.
The insurance provided under this section indemnifies the insured against direct and accidental loss of or damage to the automobile and its equipment. There is a choice of coverages available and customers' selection will depend upon the extent to which they wish to protect themselves against damage to their own automobile.The four available include:All Perils - This is the broadest coverage. It combines and broadens the protection provided by the other three coverages shown. If this coverage is selected, none of the others are required.Collision or Upset - This coverage protects the insured against loss of or damage to the automobile resulting from collision with another object which is in contact with the ground surface or by upset.Comprehensive - This coverage protects the insured automobile against any peril other than collision or upset.Specified Perils - This coverage names the perils insured against. The perils insured are: fire; lightning;, theft or attempted theft; windstorm; earthquake; hail; explosion; riot or civil commotion; falling or forced landing or aircraft or parts thereof; rising water; and stranding, sinking, burning, derailment or collision of any conveyance in or upon which the automobile is being transported on land or water.
Coverage for Accident Benefits expenses arising out of bodily injury or death (not for property damage) as a result of an automobile accident is provided by the government through the Societe de l'assurance du Quebec.Bodily Injury
Injured persons or their dependents may not sue a liable third party no matter how serious the injury or even if death occurs. They will be reimbursed according to the schedule of benefits provided by the government Accident Benefits Plan. Higher limits are available from private insurers if insureds wish to purchase them and pay additional premiums.
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