Vehicle Liability Order (Benefit Tip © 2002)

Employers who diligently manage their disability claims experience are shocked when injuries caused by motor vehicle accidents impact their loss ratios.

In Ontario, the order of liability for compensating an employee injured in a motor vehicle accident is as follows:

  • WSIB if occupational (employee under the direction and control of the company),
  • Group short-term and long-term disability insurance if non-occupational,
  • Personal long-term disability insurance,
  • Personal vehicle insurance policy (claimant or their spouse),
  • Insurance policy of vehicle owner in which the claimant was an occupant,
  • Insurance policy of vehicle owner which was involved in the accident,
  • Ontario Motor Vehicle Accident Claims Fund.

    Tips:

  • If your employees use a company vehicle for non-occupational purposes, and they don’t have personal vehicle insurance, then increase the bodily injury benefit of your commercial vehicle insurance policy to the maximum (currently $1,000 per week).
  • If you don’t want motor vehicle claims to impact your group disability benefits, then amend your policy to exclude claims arising from motor vehicle accidents where the insured is the driver or a passenger.

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