Understanding Motor Vehicle Liability Insurance in Canada: Types and Coverage, Study notes of Law

Download Understanding Motor Vehicle Liability Insurance in Canada: Types and Coverage and more Study notes Law in PDF only on Docsity! Motor Vehicle Liability Insurance Review Your Understanding Answers 1. Third-party liability insurance involves three parties-the person who caused the accident, that person's insurance company, and the victim who claims damages. The minimum amount required for all drivers in Canada is $200 000. With third-party liability insurance, the insurance company pays any claim for damages arising from an accident, up to a certain maximum. 2. Many motorists purchase more insurance than the $200 000 minimum because of increases in the size of damages awarded for automobile accidents in Canadian courts. 3. No-fault insurance is insurance designed to put money in the hands of victims immediately, whether or not they are at fault for the accident. 4. The Canadian Medical Protective Association provides medical insurance that covers legal costs and damage awards for doctors who are sued successfully for malpractice. 5. Schools and school boards purchase liability insurance as a precaution in case a party sues because of an injury suffered on school property. Retailers also purchase liability insurance to protect themselves from a person suing because of an injury received on the store property or because of a store product that causes injury. Many sports clubs and organizations purchase liability insurance in case a participant or spectator is injured beyond what would normally be expected. Docsity.com