Most people assume that if another driver causes a collision, that driver’s insurance will cover their losses. But what happens when a person suffers life-changing injuries, and the at-fault driver does not have enough insurance coverage, or does not have insurance at all?
What is OPCF 44R in Ontario?
OPCF 44R, commonly called Family Protection Coverage in Ontario, is an optional endorsement available under Ontario automobile insurance policies. It may protect you and certain eligible family members when an at-fault driver has insufficient insurance, has no insurance, or cannot be identified, as in some hit-and-run accidents.
- What does Family Protection Coverage cover in Ontario auto insurance?
The endorsement is intended to help compensate for bodily injury or death when the insurance available from the responsible driver and other liable parties is insufficient to cover the injured person’s losses. Depending on the circumstances, the coverage may apply when an insured person is driving, travelling in another vehicle, or struck as a pedestrian.
The word “family” does not mean that OPCF 44R applies only to compensation claimed by family members under Ontario’s Family Law Act. Rather, it reflects the fact that the endorsement may protect the named insured, their spouse, certain dependent relatives, and in some circumstances, other insured persons. Family members with claims arising from an insured person’s injury or death may also qualify as eligible claimants.
OPCF 44R can protect you in two situations
- What happens when the at-fault driver does not have enough insurance in Ontario?
This is commonly described as an underinsured-driver claim.
Suppose you suffer serious injuries in an accident and your damages are assessed at $2 million, but the at-fault driver only has $1 million in underinsured motorist coverage in Ontario. If you have $2 million in OPCF 44R coverage, you may be able to recover the first million from the at-fault driver’s insurer and then make a claim through your own OPCF 44R coverage for the remaining amount, subject to the policy’s terms and applicable deductions.
It is important to understand that OPCF 44R does not automatically provide an additional $2 million on top of the at-fault driver’s insurance. Generally, the maximum amount available under OPCF 44R is the difference between your Ontario family protection coverage limit and the total liability insurance available from the at-fault driver and any other parties legally responsible for the accident.
- What happens when the at-fault driver has no insurance or cannot be identified?
OPCF 44R may also apply when the at-fault vehicle is uninsured or cannot be identified, as in a hit-and-run accident.
This protection is important because Ontario’s basic uninsured motorist coverage is generally limited to the statutory minimum of $200,000 per accident. That limit applies to everyone injured or killed in the accident collectively, not to each person individually.
For example, suppose an uninsured driver causes an accident that seriously injures three people whose legally recoverable damages total $900,000. Basic uninsured automobile coverage would provide a maximum of $200,000 for the accident, leaving a $700,000 shortfall. If OPCF 44R applies and the policy provides a $2 million family protection limit, it may cover that shortfall, subject to the endorsement’s terms and applicable deductions. The injured people would not automatically receive $2 million; they could recover only their proven damages, up to the available coverage limit.
Can OPCF 44R coverage from several policies be stacked?
Generally, no. A person cannot ordinarily add or “stack” the OPCF 44R limits of every policy under which they may qualify.
The endorsement contains rules determining which policy responds first when more than one policy applies. If several policies have the same priority, the insurers may divide responsibility between them. However, the total OPCF 44R coverage is generally limited to the highest applicable policy limit, rather than the combined limits of all the policies.
For example, suppose you are driving your own vehicle when you are seriously injured by an underinsured driver. Your policy provides $1 million in OPCF 44R coverage. Your spouse, who was not involved in the accident, has a separate policy that also provides $1 million in OPCF 44R coverage.
Even if you qualify under both policies, the limits cannot ordinarily be combined to create $2 million in protection. The policy covering the vehicle you occupied would generally respond first, while your spouse’s policy would be excess. Because both policies have the same $1 million limit, the excess policy would not ordinarily increase the total available Family Protection Coverage beyond $1 million.
This makes the coverage limit under each policy important. Having access to several automobile policies does not necessarily mean that their limits can be combined.
Why Reviewing Your OPCF 44R Coverage Matters
OPCF 44R is designed to fill a gap in available insurance. It does not provide an additional amount that is automatically added to the at-fault driver’s liability coverage. For example, if an at-fault driver has $1 million in liability coverage and the injured person has a $1 million OPCF 44R limit, the endorsement will ordinarily provide no additional coverage, even if the injured person’s damages exceed $1 million. This is because the OPCF 44R limit does not exceed the insurance available from the at-fault driver.
If the injured person instead has a $2 million OPCF 44R limit, the endorsement may provide up to an additional $1 million toward the shortfall, subject to the policy wording, applicable deductions and the circumstances of the claim. Having access to several automobile policies does not necessarily increase the available protection because OPCF 44R limits generally cannot be stacked.
Drivers should speak with their insurance broker or agent to confirm whether OPCF 44R is included in their policy, determine the applicable limit, and understand how that limit relates to their third-party liability coverage. A broker can also explain the cost and effect of increasing those limits. Reviewing this coverage before a collision occurs allows drivers to make an informed decision about whether their policy provides sufficient protection for themselves and eligible family members.
Reach Out to Edwards Pollard LLP Regarding OPCF 44R Claims.
Every claim depends on its facts and the precise policy wording. OPCF 44R claims may involve complex questions about priority, available insurance, eligible family members, evidence and limitation periods. If you have been injured by an uninsured, unidentified or underinsured driver, obtaining legal advice early can help protect your rights.
Contact Edwards Pollard LLP online or call 289 529 0404 for a free consultation.