The Ontario Auto Policy (OAP 1) – Owners Policy
Your auto policy is broken down into 8 sections.
Section 1 – Introduction Section
Section 2 – What automobile are Covered
Section 3 – Liability Coverage
Section 4 –Accident Benefit Coverage
Section 5 – Uninsured Automobile Coverage
Section 6 – Direct Compensation Property Damage
Section 7 – Loss of damage coverage – your automobile
Automotive insurance is a very complex product. I am going to briefly provide a general outline dealing with fault with more information on the auto policy to follow at a later date.
Your auto policy accident benefits is the only part of the auto policy that is actually “No Fault” All other coverages under the policy are determined as to which party is at fault. When a police officer informs you that the Ontario Auto Plan is a no fault plan and you do not have to worry about fault, that officer is giving you incorrect information.
It is very important to know who is at fault in determining how the physical damage to your auto will be paid and how any future liability claims will be settled. If you are at fault then the damage to your vehicle will be paid under Section 7 – Collison coverage (Optional Coverage) if purchased less your deductible. If the third party is at fault, the damage to your vehicle will be paid under Section 6 DCPD (Direct Compensation Property Damage – no deductible applies unless you purchased one). Also, if you are at fault you may have created a tort, whereas the third party has the right to litigation for bodily injury and/or property damage. In all accidents fault is determined under fault charts which are part of the Ontario Auto Plan legislation. The next issue I will discuss the new Auto Reform effective June 1/16 which has now been in force for 10 months and its repercussions to insured’s in event of a serious bodily injury claim.
Will Marshall, CIP