Road accidents in today’s world have become a common scenario. Drivers and riders are getting injured every day on the road. Having a compensation claim can benefit in recovering the injury expenses largely. But sometimes, regular insurance and liability plans will not cover the whole expenses.
This is where the family protection endorsement plan comes in, named as SEF 44 protection plan.
What is family protection endorsement SEF 44?
The SEF 44 family protection plan provides an opportunity to add an extra rider to the motor vehicle insurance. You can use this plan to claim injury compensation when your regular insurance doesn’t cover the expenses. If or when you face an accident, this coverage can provide you with an extra layer of protection.
Generally, you will need an insurance policy when you have a motor vehicle. If, unfortunately, you are involved in an accident, you can claim compensation from the other driver’s insurance. And this is true for any motor vehicle driver.
Accidents are almost always dangerous that can leave you with severe injuries. As a result, you can incur hundreds of dollars in medical bills and loss of income. Regular insurance only covers a certain amount of expenses. However, you can claim compensation from your insurance company using the SEF 44 coverage.
How Does SEF 44 Work?
It is quite common for other drivers to be underinsured or uninsured. Some drivers may even flee the incident, and you might never identify them. In these situations, you can use the SEF 44 Family Protection Coverage.
SEF 44 coverage can minimize the difference between regular insurance coverage and your medical expenses. Let’s have a look at some examples to understand it better.
Suppose you have been injured in an accident. The guilty driver only has a maximum of $200,000 of liability coverage. However, your medical and other expense compensation claim is around $1,000,000.
In this case, you can use your SEF 44 coverage. You can claim the remaining $800,000 from your insurance provider using the SEF 44 coverage.
Another situation can be when the guilty driver has no liability coverage. Yet, your injury compensation is $500,000. In this case, you can also use the SEF 44 plan.
For example, you can claim $100,000 from the motor vehicle accident claim fund. And the remaining $400,000 can be claimed from your insurance provider using the SEF 44 coverage plan.
Finally, suppose you have been involved in a hit-and-run scenario. Your claim worth is $250,000. If your SEF 44 coverage is $1,000,000, you can also use the plan here.
The first $200,000 can be claimed from the motor vehicle accident claim fund. And you can claim the rest $50,000 from your own insurance provider by using the SEF 44 coverage plan.
The Importance of SEF 44 Coverage for Motor Vehicle Drivers
Liability insurance requirements in several places outside of Alberta are significantly lower. For instance, the minimum liability protection is as low as $25,000 in certain states in the United States. Medical fees can quickly mount if you are hospitalized in the United States and seek care in an American hospital.
If you use your motor vehicles to travel frequently, this is one of the major reasons to get the SEF 44 Family Protection Coverage. You can contact your insurance broker about it.
If you travel frequently, one of the many reasons you should talk to your insurance broker about getting enough SEF 44 Family Protection Coverage is because you are a frequent traveller. It makes no difference where an accident occurs.
On the other hand, if it includes an automobile and you are not guilty or partially to blame, you can use your SEF 44 policy to cover gaps in the other driver’s liability coverage.
Limitations of the SEF 44 Family Protection Coverage
The SEF 44 coverage plan has 2 major limitations:
- Unless you have more SEF 44 protection than the at-fault driver’s liability coverage, SEF 44 is not beneficial. It only protects you up to a certain amount of your Third-Party Liability insurance. If you have $1,000,000 in liability insurance and are hurt by someone who also has $1 million, the most you can claim is $1 million. In other words, you will not be allowed to file a SEF 44 claim if your SEF 44 coverage equals the maximum coverage of the guilty party.
- The SEF 44 Endorsement is particularly beneficial to insurance companies in a multi-injured accident. This is because it only compels them to pay coverage over the at-fault party’s liability coverage rather than compensating in addition to your claim value.
Conclusion
The family protection endorsement SEF 44 plan can be highly beneficial for regular motor vehicle drivers. It covers the compensation claim above the standard liability coverage. But you have to ensure that your protection plan covers more compensation than the guilty party’s liability coverage.
So, know whether you have the SEF 44 protection plan or not as soon as possible. Talk to your insurance provider today and understand the coverage options and policies.
