Motor Vehicle Accident with an Uninsured Driver
In Ontario if you are injured in a motor vehicle accident, you can commence a lawsuit against the at fault driver for damages. The at fault driver’s insurance company will then defend the claim. What happens if the at fault driver has no insurance coverage?
Section 265 Insurance Act
Section 265 of the Ontario Insurance Act ensures that every insurance contract or policy in the province will contain coverage for injuries caused by an uninsured driver. So if you are in an accident with an uninsured driver your insurance company will assume the defence of the at fault party.
Section 265, however, is limited to situations where no other motor vehicle liability policies are available to compensate the insured party. Section 2(1)(6) of Regulation 676 of the Insurance Act states that the insurer shall not be liable to make payments under Section 265 where the insured is entitled to recover money under third party liability section of the policy.
Therefore, for section 265 to apply there cannot be anyone else liable. If there is another party that the injured person can recover from, then the law stipulates that they recover from that person.
It is important to maintain your insurance coverage and make sure your policy is not terminated because of missed payments or failure to renew. For questions regarding your policy and your rights regarding motor vehicle accidents under the Insurance Act, call Douglas Strelshik Law.