How will claims exceeding a liability limit of $200,000 be apportioned in Ontario?

In Ontario, when claims exceed a liability limit, the apportionment follows a specific structure to ensure fairness and compliance with the limits set by insurance regulations.

In this case, assuming a liability limit of $200,000, the apportionment of the claim into separate categories of bodily injury (BI) and property damage (PD) can vary based on the circumstances of the incident. Option B specifies an allocation of $190,000 for bodily injury and $10,000 for property damage. This allocation reflects a realistic consideration of greater bodily injury claims, which often exceed property damage claims in personal injury cases.

The figures presented in this option indicate a division that simultaneously respects the overall claim limit while addressing the typical distribution of damages between BI and PD. By setting aside $190,000 for bodily injury, which often represents the larger component of damages in many liability claims, the apportionment appropriately prioritizes the significant health-related impacts that might arise from an accident.

Understanding this context is crucial for making informed decisions in insurance claims management, as it reflects adherence to regulatory limits while providing adequate compensation for the more severe impacts of accidents that result in bodily injuries.