Spring is here to stay and it brings something new for motorcycle owners – a third option for injury coverage from SGI, called Reduced No Fault.
Announced in May 2015 and implemented April 1, 2016, Reduced No Fault coverage offers a basic package of injury benefits at a lower cost, since there are fewer benefits. Motorcycle owners have the choice between Reduced No Fault coverage and the two options that existed previously – the full package of No Fault injury coverage or Tort coverage.
“This new option gives motorcyclists more choices but also ensures they continue to have some injury coverage should they need it,” said Andrew Cartmell, President and CEO of SGI. “Motorcyclists, just by virtue of being so exposed with little protection, are typically much more seriously injured in collisions. It’s important for motorcycle owners to ensure they have the right coverage for their individual needs – as well as those of their family – if they are injured in a crash.”
To be eligible for, and to select the new coverage, the rider must:
• be the registered owner of the motorcycle • hold a motorcycle endorsement on their driver’s licence
• visit a motor licence issuer to sign a declaration form stating they understand the reduced coverage and wish to switch from No Fault to Reduced No Fault injury coverage
• sign a separate declaration for each motorcycle they own, if they own more than one bike and wish to switch coverage on other bikes
• have a parent or guardian sign the declaration, if the owner is under 18 years old.
Motorcycle owners who select Reduced No Fault coverage will receive the following discount, depending on the engine size of their motorcycle: five per cent for all motorcycles 100cc and less 20 per cent for all motorcycles 101cc-400cc 30 per cent for all motorcycles 401cc and more.
The discount is applied before the owner’s Safe Driver Recognition discount (if applicable).
Motorcycle owners opting for Reduced No Fault injury benefits will receive fewer benefits when they’re operating their motorcycle and are found 50 per cent or more responsible for the collision, and also when they’re in any single-vehicle crash. In collisions where someone else is responsible, the motorcycle owner would receive full No Fault injury benefits.
“No one plans to get into a collision, but unfortunately they do happen, so motorcycle owners need to make an informed decision about the amount of injury insurance they need,” said Cartmell.
In February, letters with information about the coverage options were sent to all customers with a motorcycle endorsement on their licence. Motor licence issuers across the province received training on the new coverage in March.
