Brief overview of Section A, B, C, and D of the Standard Automobile Policy
By: Brianna Carmichael, Associate Lawyer
In New Brunswick, every motor vehicle insurance policy has four standard Sections. These are usually referred to by letters: A, B, C, and D. This post aims to briefly explain which section does what and who you need to contact for different types of insurance coverage following an accident.
The sections are presented out of order, based on who you are likely to contact first following an accident.
Section C – Property Damage
“Section C” is your own insurance company’s property damage section. They will pay you for repairs to your vehicle, pay you for a total loss of a vehicle, and pay for a rental car if you have rental coverage.
There will be an adjuster assigned from your own insurance company to contact you regarding Section C coverage for property damage. The adjuster or an appraiser will sometimes meet with you to take photos of your vehicle and the damage, to assess the cost.
Often, insurance companies have “preferred” garages or repair shops. You are not obligated to use one of their preferred garages, but if you do, the insurance company will usually pay the garage directly so no money comes out of your pocket.
Section B – Accident Benefits
A different adjuster at your own insurance company will be appointed to manage your “accident benefits” if you are injured in a car accident. These benefits are no fault, meaning even if you are completely responsible for the accident, you will be covered.
Coverage extends for either four (4) years after the date of the accident, or up to a maximum of $50,000, whichever comes first.
This coverage is for medical needs you have as a result of an accident. This can pay for treatments at physiotherapy, chiropractors, massage therapists, and others, for medications, and for special equipment like heating pads, TENS machines, and
Section B also pays a small salary replacement benefit of 80% of your pre-accident weekly salary, up to a maximum of $250 per week. The income replacement benefit does not end after four (4) years if you are still off work due to the accident. Please refer to other blog posts on the website to see if you qualify.
Section A – Third Party Liability
In a typical motor vehicle accident involving two cars, “Section A” is the other driver’s insurance company. This is the company that will pay you for any loss of income that Section B did not cover, and medical expenses Section B didn’t cover (i.e. after the 4 year period), for any other out of pocket expenses you have, and most importantly for your pain and suffering.
If you are represented by a lawyer, the Section A insurance company is not allowed to speak with you directly and must communicate through your lawyer.
Section D – Uninsured Automobile Coverage
What happens if you are in an accident with another person who does not have insurance on their vehicle? What if the other driver leaves the scene of the accident? You can’t contact their insurance company to get a settlement for your pain and suffering.
In this situation, your own insurance company steps in to fill the void, through what is called “Section D”. This section provides coverage to you if you are involved in an accident with an uninsured person or if you are involved in a hit and run and the other driver can’t be identified. Your own insurance company will appoint an adjuster to effectively step into the shoes of the other driver’s insurance company and will, for the most part, act as a “Section A” insurance adjuster.
There are some additional limitations on Section D coverage, which come up on a case by case basis.
More detailed information on the four sections and what coverage they provide can be found in the NBPF No. 1, a standard document that is mailed out with all new automobile insurance policies. Otherwise, you can request a copy from your insurance company or look up the New Brunswick standard automobile policy online.
If you have been in an accident and need clarification on the different adjusters who have contacted you, or if you’re tired of chasing after documents and dealing with all the different players, the Mike Murphy Accident Team can help. Please give us a call.
DISCLAIMER: The publications on this website are intended to provide information of a general nature and not legal advice. The information contained in this publication is current to the date of the publication and may be subject to change following the publication date.