The Family Protection coverage is one of the few that should be mandatory but is not. It does not come standard so be sure to review your policy and ensure it is added.
The Family Protection coverage or OPCF 44R exists to protect the insured in the event that the driver who caused the accident does not have sufficient third-party liability coverage.
The coverage is dependent on two factors: The injured party’s third party liability limit as well as the other party’s limit.
Should the at-fault party’s liability not be sufficient to cover the injuries of the victim, the injured party can claim the difference from their own insurance company under the OPCF 44R endorsement.
Lets assume driver A has the minimum Ontario liability coverage of $200,000. Driver B has the recommended $1,000,000. Lets assume now driver A rear-ended driver B and caused an injury which will cost $350,000.
Driver A’s liability limit is exhausted at $200,000 and driver B can claim the remaining $150,000 from their own insurance company.
If both drivers only had $200,000 limit and the injury was still $350,000, driver B would not be able to claim the remaining $150,000 because he did not have more third-party liability.
Have a question? Call Filip Ambroziak at (416) 802-2113 or email firstname.lastname@example.org.