Automobile accidents can have significant impacts on those directly involved and also their family members. The unfortunate reality is that some accidents tragically result in death.

Background

In Ontario, automobile insurance is mandatory and comes with standard coverages for Death and Funeral Benefits regardless of fault. The no-fault coverages are called Accident Benefits. Entitlement to Accident Benefits is governed by the Statutory Accident Benefits Schedule (the “Schedule”).

Beyond Accident Benefits and where someone else is at fault for the accident, additional damages may be recovered on behalf of a deceased person’s estate or loved ones in a court action.

Like other forms of Accident Benefits (such as medical and rehabilitation benefits) most standard coverages for Death and Funeral Benefits can be proactively increased by contacting your insurance broker or insurer directly before an accident takes place. The unfortunate reality is that it usually isn’t until after an accident occurs that many people realize how inadequate their insurance is, and by then it is too late.

Coverage

In the case of death as a result of an automobile accident, the standard Accident Benefit insurance coverage for an “insured person” includes but is not limited to:

Funeral Benefits: Up to $6,000 to reimburse for funeral costs

Surviving Spousal Benefits: Up to $25,000 paid as a lump sum

Dependant Benefits: $10,000* to each dependant paid as a lump sum

*In cases where there is no surviving spouse the benefit available to the insured person’s dependants may be increased by $25,000, divided equally among any dependants.

Where an insured person was a dependant on someone else a death benefit up to $10,000 is also available.

Section 3 of the Schedule defines who an “insured person” is. An “insured person” is the named insured on the policy. An “insured person” can also include people who are not named on the actual insurance policy like the policyholder’s spouse and their dependants.

Where a pedestrian without their own automobile insurance dies as a result of an accident, Death and Funeral Benefits are available from the insurer of the vehicle involved or through the automobile insurer of the pedestrian’s spouse or person of whom the pedestrian was a dependant, or as a very last resort, through the government operated Motor Vehicle Accident Claims Fund.

Death and Funeral Benefit coverage not only applies to an insured person’s death at the scene of the accident but also within 180 days of the accident, or 156 weeks after the accident if during that period the insured person was continuously disabled as a result of the accident.

How to Claim

In order to claim Death and Funeral Benefits claimants are required to complete and submit to the insurer an Application for Accident Benefits (OCF-1),  Death and Funeral Benefits Application (OCF-4) and provide the insurer with a copy of the death certificate.

Sometimes insurers will ask a claimant to complete additional documentation, such as a Statutory Declaration, in order to establish the nature of the claimant’s relationship with the insured person. It is our strong recommendation that people contact legal counsel before taking these steps.

Our firm routinely advances Accident Benefit and court claims on behalf of estates and family members left behind. If your family member has died as a result of a car accident and you would like to consult us, contact our office.

SAMUEL DAVIES