Family Protection Insurance Endorsements ("SEF 44 Coverage") - 5 Things to Know

If you are injured in a motor vehicle accident which was the fault of an uninsured or underinsured driver, your own auto policy very likely provides supplemental insurance coverage in what is commonly called an “SEF 44” or “Family Protection” Endorsement (“SEF 44 Coverage”).

Here are 5 things to know about SEF 44 Coverage:

1. In order to access your SEF 44 Coverage, you must first have exhausted all other potential sources of settlement funds. Where the at-fault driver was uninsured, this would typically begin with claiming, and receiving, the $200,000 in coverage available from the Uninsured Motorist Fund (“Fund”).
2. If you are able to recover the $200,000 from the Fund, you must then exhaust all other potential sources of insurance from anyone else who may have been at fault for the accident, before you are permitted to access the SEF 44 Coverage;
3. The amount of the SEF 44 Coverage is the same as the limits of your policy. Therefore, if you have coverage of $1 million, you have Excess Coverage of $1 million. However, from that $1,000,000 must be deducted the amounts first recovered from other sources. So, for example, if you have SEF 44 Coverage of $1,000,000, and you recover $200,000 from the Fund, and there are no other persons at fault for the accident, your own insurer is liable to pay up to $800,000 in SEF Coverage.
4. In the case of an underinsured driver, you can claim SEF Coverage where your claim exceeds the amount of their insurance policy limits. However, this can be done only to the extent that your SEF 44 Coverage exceeds the policy limits of the underinsured driver. So, for example, if the at-fault driver had policy limits of $1 million, and your SEF 44 Coverage is also $1 million, you may not claim the SEF Coverage. However, if the at-fault driver had policy limits of $1 million, and your SEF 44 Coverage is $2 million, your insurer is liable to provide SEF Coverage of up to $1 million.
5. In order to access the SEF 44 Coverage, you must notify your insurer of a potential claim as soon as you are aware that the at-fault driver(s) may have been uninsured or underinsured. Failure to notify your insurer in a timely manner may preclude you from accessing the SEF 44 Coverage.

If you have been injured by an uninsured, underinsured or unidentified driver, please contact us for further advice.

Maureen McCartney-Cameron is counsel at JSS Barristers. She is recognized by Best Lawyers in Canada for her work in personal injury litigation.

Please note that JSS Barristers insights are provided for informational purposes only. They are not intended as legal advice or a legal opinion. Please contact authors or JSS Barristers if you would like to obtain legal advice on this or other legal issues.