Thursday, September 6, 2012



The recent sinkhole on the 174 east, close to Orleans, has generated some interest about insurance…… yes, you read that right - INTEREST ABOUT INSURANCE!.  Various comments appeared on twitter and facebook like a few samples below:

Sooooo…. Let’s see if we can shed some light on the situation.  Remember that every situation is unique, you should talk to your insurance broker, and we only know the details about this specific case, that we can read in the newspaper.

Although the ultimate decision about claims rests with the particular insurance company, in this type of situation, we would expect the claim would handled under the loss or damage section of the policy as a collision.

If the person in question did not have collision insurance at the time of the accident, they would be financially responsible for the loss of the vehicle. They would also have to pay for their own rental vehicle (if required) and have to purchase a replacement vehicle at their own expense. They would also be responsible for the costs involved in recouping the lost funds from the province, if that was an option they wished to pursue. This would take time and money.

If the person in question had the full, appropriate physical damage coverage on the policy at the time of the accident, the insurance company would cover the loss of the vehicle, according to the terms of the insurance policy. They would also pay for a rental vehicle (assuming that coverage had been purchased), giving the client sufficient time to find a replacement vehicle. The claim would be subject to the policy deductible.

Since the collision was a single car accident, it is technically considered to be an at fault claim. However, in situations such as these, the outcome of the claim would be handled on a case by case basis. A thorough investigation would take place in order to properly negotiate the settlement with the claims adjuster.

If the insured sustained injuries (which fortunately in this case, I understand that they were only very minor) from the accident he/she would be entitled to compensation under the accident benefits portion of the policy up to a certain limit. The option to increase accident benefits on an automobile policy is available for all licensed drivers in Ontario. Increasing this coverage comes with a minimal cost but could help protect you and your loved-ones in the event of a catastrophic accident.


  1. This comment has been removed by a blog administrator.

  2. Congratulations on having one of the most sophisticated blogs Ive come across in some time!  Its just incredible just how much you are able to take away from some thing simply because of how visually lovely it can be.  Youve put together a fantastic weblog space --great graphics, videos, layout.  This is definitely a must-see weblog! Cheap medical insurance in Houston