Various family situations are recognized, and the High Risk Auto Insurance policy includes the calculation of total benefits and the specific manner of payment. Provincial legislation relating to family relationships will determine who is entitled to claim in situations where the insured person dies due to an auto accident. High Risk Auto Insurance Benefits policy have a provision for payment of death benefits when an insured person dies from an auto accident. In cases such as this, the dependents and other beneficiaries listed under the coverage receive payment.

Many accidents cause serious injuries that result in partial or total disabilities for the insured person. Such impairments can be temporary or permanent, generally resulting in a loss of wages because the insured person is incapable of working and all other significant impacts to a person’s life such as inability to take care of oneself in a previously usual fashion. The purpose of this High Risk, Auto Insurance policy, is to provide a weekly benefit designed to substitute or at least partially substitute for the income that the insured person has lost due to the accident that they have had.

High Risk Auto Insurance Provincial Regulations:

Provincial regulations define specific policy disability wordings as it relates to the High Risk Auto Insurance Benefits policy Insurance Coverage. The policies generally distinguish between employed persons and those not working for a salary. For example students and spouses who run the home. The exact amount payable per week, the waiting period before payments begin. The goal is to discourage individuals from making frivolous claims for minor injuries in some jurisdictions.

The benefit is a loss of earnings coverage for the insured. It is a contract of indemnity, which means the insured cannot profit from the injury. In some provinces, paid benefits will have a time limit while in other jurisdictions payments could continue for the remainder of the injured person life.

How to calculate the Benefit Payment amount in a High Risk Auto Insurance Policy:

The amount insured which may vary across jurisdictions and stated in the policy or government regulations relating to High Risk Auto insurance. It is typically a percentage of gross weekly earnings subject to a maximum limit per week. Some jurisdictions also stipulate a minimum limit per week.

The monetary value of the lost time of the insured person, for example, lost wages or the cost of replacing a homemaker. If there is more than one Insurance Contract such as group accident insurance or disability benefits under additional life insurance policies as well as further individual accident insurance each insurance company will contribute a proportionate amount of the lost wages. The lost wages contribution would be in the proportion that the actual loss of income bears to the aggregate of the payments for loss of income payable under all such contracts.

These provisions in all High Risk Auto Insurance policies ensure the principle of indemnity.