Accident Benefits In Ontario And What's Covered

Accident benefits provide compensation if you or others are hurt or killed in an automobile accident. They cover passengers and pedestrians involved in the incident.

The FSRA provides a definition :

"This section of your automobile insurance policy provides you with benefits if you are injured in an automobile accident, regardless of who caused the accident, including supplementary medical, rehabilitation and attendant care, caregiver, non-earner and income replacement benefits. Options exist to increase most of these coverages."

The Statutory Accident Benefits Schedule (SABS) is an important document that outlines what is covered under your policy.

It applies to all basic automobile policies. It outlines the mandatory and optional limits for medical care, income replacement, death, funeral expenses and loss of income from disability.

Accident benefits are mandatory in Ontario. All policies will include it. There are standard and optional additions that you can add to your plan.

Here is what the benefits will cover across the province :

Income replacement, non-earner and caregiver benefits

• Income replacement benefits : If you are unable to work, you may qualify for benefits of 70% of your gross income, capped at $400 per week. You have the option to increase of up to $1,000 per week.
• Caregiver benefits : If you cannot provide care to a dependent, you could receive compensation to hire someone to help you care for them. This applies to specific injuries. You can add optional endorsements to include all injuries.
• Non-earner benefits : If you don’t qualify for income replacement, are a student, and cannot continue daily life as you did prior to the incident, you may qualify to receive $185 per week.

Medical, rehabilitation and attendant care benefits

This will help with medical and rehab expenses that are not covered by a private health plan or the government.

Mandatory coverage includes up to $65,000 for non-catastrophic injuries or up to $1 million for catastrophic injuries. You can increase the amount for non-catastrophic injuries to $130,000 and for catastrophic injuries to $2 million.

• Medical and rehabilitation benefits : This covers the cost of health care and rehabilitation. This includes physiotherapy, prescriptions, chiropractic, counselling, and other services not covered by OHIP or through your group plan (if applicable). Medical care and costs that qualify are listed in the statutory accident benefits schedule.
• Attendant care benefits : If you are unable to continue as a primary caregiver, you will be provided with assistance at your home or healthcare facility to help you recover from a serious injury. This helps single-parent families, families with one stay-at-home parent, and households with other dependents. It includes up to $250 per week and an additional $50 per week for each subsequent dependent living in the house.

Death and funeral benefits

If you pass away as a result of an accident, the following will be paid out :

• $25,000 to your spouse
• $10,000 to each of your dependents
• A maximum of $6,000 for funeral expenses
• $10,000 to former spouses if the person had financial obligations to them

You have the option to increase limits up to $50,000 for your spouse, $20,000 to dependents, and $8,000 for funeral expenses.

Other expenses

Additional expenses can be covered, including :

• Lost educational expenses : Compensation for lost tuition, books and other education-related expenses up to $15,000.
• Expenses of visitors : Reasonable expenses incurred by family and friends to visit you during recovery and treatments. Your spouse, children, grandchildren, parents, grandparents, siblings, certain other dependents, and guardians qualify.
• Housekeeping and home maintenance : Receive up to $100 per week for reasonable expenses to help with housekeeping and maintaining your home while you recover.
• Damage to clothing, glasses, and other belongings : Receive compensation for damaged clothing, glasses and other personal medical devices damaged during the accident.
• Cost of examinations : Compensation for the cost of examinations related to treatments as part of your recovery.

What are optional accident benefits in Ontario?

You have the option to increase limits for income replacement, medical care, caregiver benefits, death and funeral benefits, and more. Here is what you can add :

• Dependent care benefits : This will cover up to $75 per week for your first dependent and $25 for each additional dependent. This can only be claimed if you were employed at the time of the accident and have to pay for additional childcare expenses due to injuries sustained.
• Indexation : This gives you an annual adjustment for yearly inflation rates. Adjustments are done by the Consumer Price Index of Canada.

More options include :

• Up to $130,000 in additional medical expenses
• Additional death and funeral expenses up to $50,000, raises dependents to $20,000
• Catastrophic impairment up to $1 million
• Extra income replacement

Keep in mind that increasing your limits will increase your premiums. Contact us to see how much they will increase.

Accident benefits regulations in other provinces

Accident benefits are included in the minimum requirements in all provinces except for Newfoundland. The limits for medical payments, replacement income, death benefits, funeral costs, and the ability to sue vary from province to province.

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All insured drivers are entitled to accident benefits

Knowing your limits and understanding your needs is important. Check your agreement or speak to your insurer to know how much protection you have and if you should add any additional coverage to your car insurance quote.