The truth is that there is quite a lot of legal regulation which is dedicated to car accidents and the results that stem from it. And this is definitely a good thing. Especially if we take into account the frequency with which these accidents tend to happen as well as the harmful consequences which usually derive from them. With this in mind, let’s take a look at the Insurance Act of Ontario – a piece of legislation which governs how the insurance is paid out and in under which circumstances.
Insurance Act of Ontario
The Insurance Act of Ontario is a comprehensive and cogent piece of legislation which poses strict provisions that have to be abided by when it comes to claiming compensation as well as when it has to be repaid. You see, in a car accident case there are always going to be at least two parties – the claimant, who is usually the victim of the accident who had to incur the damages and the liable party or, in most situations, the insurance company. We say in most situations because unless it’s specifically mentioned in the Insurance Act, the rules of Fault Determination are going to kick in and activate one very important clause.
This clause is commonly referred to as the “No Fault” rule and it’s laid out in the aforementioned act. With this in mind, the rule basically stipulates that regardless of who’s at fault, the compensation is going to be paid out by the insurance company. Of course, there are exemptions. For instance, if the driver who caused the accident was under the influence, he’s going to lose his privileges that derive from this rule.
However, if there are no exemption conditions and the victim wants to get compensated, he should be seeking it out of the insurance company. The process is particularly challenging as these companies are going to do whatever they can to reduce your compensation and delay it in time as that’s how they report their profits.
In any case, you should keep into account that just because there is a “No Fault” rule in motion, this doesn’t mean that fault is not going to be assigned. The investigation is carried by the insurance company and it’s going to assign fault accordingly. This is done so that the premiums could be adjusted properly based on the involvement of the insured party in the accident and the fault that he has for its occurrence in the first place. This is due to the fact that you are going to have an elevated risk factor and as such are going to be subjected to higher premiums. That is how insurance companies operate and that’s what you’d have to take into account.
This is one of the major reasons that you need a good lawyer in your corner to assist you through the negotiations or trial.