The vast majority of motor vehicle accidents in Ontario involve two motor vehicles colliding. In such cases the occupants of the motor vehicles make claims with their own insurance company for Statutory Accident Benefits which provides money for medical treatment, lost wages, etc. The occupants of the not at fault motor vehicle also have the right to bring a tort claim against the insurer of the at fault vehicle for additional compensation including pain and suffering, etc.
In accidents involving a motorcycle there is one significant and important difference because of something called loss transfer.
An occupant of a motorcycle who is involved in an accident with a motor vehicle still makes his or her claim for Statutory Accident Benefits to their own insurance company, however, if they were not at fault for the accident their insurer is able to recover the amounts it pays out from the at fault driver’s insurance company through the loss transfer provision in the Insurance Act.
An occupant of a motorcycle who was not at fault for the accident also has the right to bring a tort claim against the insurer of the at fault vehicle for additional damages.
The reason for this rule is that occupants of motorcycles are far more likely to suffer from serious injuries in accidents and require more Statutory Accident Benefits. And since not all insurance companies insure motorcycles this ensures that the insurance companies that do insure motorcycles do not end up paying a disproportionate share of accident benefits.
The implication to injured motorcyclists is that both their tort and Statutory Accident Benefits claims end up being paid by the at fault driver’s insurance company in the end.
This result can have an impact on the overall settlement value of their claims and it is very important to have a lawyer with experience handling motorcycle claims who understands the loss transfer rules, the implications they have on a claim and can ensure that a proper overall settlement is achieved.
If you are a motorcyclist who has been injured in a not at fault accident and want a lawyer with experience and expertise handling these types of cases contact Beckett Personal Injury lawyers for a free consultation
Published on April 23, 2024
