Loss Transfer - When Accident Benefits May Be Transferred To Another Insurer

Overview

In Ontario, Insurers are subject to a "Loss Transfer" regime. Loss Transfer applies when an accident involves specific types of vehicles. These are either a "heavy commercial vehicle", motorcycles, motorized snow vehicles or an off-road vehicle.

When one of these vehicles is involved in an accident, the Loss Transfer regime may be applicable. In essence, in some specific situations, the entire Accident Benefits claim for an accident under the Statutory Accident Benefits Schedule, can be transferred from the injured person's "first party insurer" to an insurer of an at-fault vehicle, often referred to as a "second party insurer".

This paper is an overview of the framework of Loss Transfer law.