Car Accident Death Benefits in Ontario: What Families Need to Know

A fatal motor vehicle accident changes everything in an instant. The sudden loss of a loved one leaves families in shock, overwhelmed by grief and searching for answers in a time of deep uncertainty. Alongside the emotional toll, there are unfamiliar situations to navigate, including insurance claims, accident benefits, and legal questions that arise at a time when it’s hardest to face them.

In recent weeks, several tragic collisions across Ontario have served as heartbreaking reminders of how quickly lives can be altered. In Niagara-on-the-Lake, three young people lost their lives in a single-vehicle crash. In Pickering, another collision claimed three more. And in Eganville, a fatal crash led to charges and renewed concern about road safety. 

These stories reflect the painful reality many families face after a serious accident: trying to make sense of what happened, while also trying to understand what support is available.

At McNally Gervan, we help families during these difficult moments. We provide guidance on what benefits and compensation may be available after a fatal car accident. This article explains what car accident death benefits include, who can receive them, and what to expect when filing a claim.

A Guide to Death and Funeral Benefits

No-Fault System Still Offers Support

Ontario operates under a no-fault insurance system. This means that accident benefits are available even when the deceased person caused the accident. The law recognizes that the financial impact of an unexpected death doesn’t depend on blame. 

If your loved one died in a motor vehicle accident, you may qualify for coverage regardless of who was at fault. These death and funeral benefits are built into every standard auto policy issued in Ontario, regulated under the Statutory Accident Benefits Schedule (SABS).

Lump Sum Payments for Spouses and Dependants

If the person who died was an insured person, a surviving spouse may be eligible to receive a lump sum payment of $25,000. Each of the insured person’s dependents may qualify for $10,000. If there is no surviving spouse, that $25,000 amount may be divided equally among the eligible dependants. If the person who died was themselves dependent on someone else’s insurance policy, a separate death benefit of $10,000 may apply.

Funeral Costs Can Be Reimbursed

Standard Ontario auto insurance policies include coverage for funeral expenses. The insurer may reimburse up to $6,000 in funeral costs, which must be supported by documentation. This is a fixed maximum, though optional coverage can increase this limit. It is common for families to incur additional expenses not covered by the base policy, which can add to the financial pressure at a difficult time. 

Timelines Matter More Than You Think 

Timing is a common source of confusion when it comes to claiming benefits. The person applying must submit their forms to the insurer within 30 days of receiving the application package. 

The necessary forms include an Application for Accident Benefits (OCF-1), a Death and Funeral Benefits Application (OCF-4), and a copy of the death certificate. Insurers may request additional forms such as a statutory declaration to confirm your relationship to the deceased. In some cases, it may take time to establish that a person was a common law partner or primary caregiver. Acting quickly is important.

Optional Coverage Can Make a Big Difference

Many families find the default death benefit amounts are not enough to cover the real financial impact of a loss. The standard benefit levels have not kept pace with the Consumer Price Index or the rising costs of funeral services and lost income. Depending on the policy, optional coverage can include expenses incurred for grief counselling and income replacement benefits for surviving dependents, increasing the amount you receive.

Legal Representation Maximizes Results

Families may be entitled to file a wrongful death claim if the accident was caused by someone else’s negligence, on top of their standard death benefits. These claims can recover compensation for loss of care and financial losses. A lawyer can assist in coordinating these efforts and identifying other sources of coverage, including claims through the Motor Vehicle Accident Claims Fund if no insurance is available, to maximize the compensation you receive.

Support When You Need It Most

We understand the legal and emotional challenges that come with a sudden death caused by a car accident, and our team works with you to secure death benefits and deal with insurance companies, so that you don’t have to. We’re here to help you understand your rights and get the compensation you are entitled to.

Contact us today for a free consultation and learn about our insurance claims services.

What Families Should Know: Frequently Asked Questions

What types of insurance benefits are available to a family after a fatal car accident in Ontario?

Following a fatal automobile accident, families may be entitled to several types of benefits under Ontario’s auto insurance system, including death benefits for the surviving spouse and dependents and reimbursement for funeral expenses. Optional coverages may offer additional payment for grief counselling, extended support for dependants, or other services. 

Who is eligible to receive death benefits under Ontario auto insurance policies?

Death benefit eligibility is based on the relationship to the deceased and whether the person qualifies as an insured person under the Statutory Accident Benefits Schedule. A surviving spouse, dependent children, and any other insured person’s dependents may qualify. In certain cases, a person financially dependent on the deceased could receive benefits, even if not named on the policy. 

How much compensation can be claimed if a family member dies in a car crash in Ontario?

Under the standard Ontario policy, a surviving spouse may receive a lump sum of $25,000, and each dependent is entitled to $10,000. If there is no spouse, the $25,000 is divided equally among the dependants. Funeral benefits cover up to $6,000, and if optional accident benefits were purchased, these amounts can be significantly higher.

What is the process for filing a death benefit claim under Ontario’s auto insurance system?

The process starts by notifying the insurer and submitting an Application for Accident Benefits (OCF-1), a Death and Funeral Benefits Application (OCF-4), and a copy of the death certificate. These documents must typically be submitted within 30 days of receiving the forms. Insurers may request additional paperwork, including a statutory declaration to confirm the claimant’s relationship to the deceased. 

Are funeral expenses covered under Ontario car insurance after a fatal accident?

Yes, funeral expenses are reimbursed up to a maximum of $6,000 under the standard policy. This can help cover funeral costs such as burial or cremation services, transportation of the deceased, and related expenses. If the insured person had purchased optional coverage, this limit may be higher. 

Can a spouse or dependent claim for loss of income or support?

Loss of income or financial support is not covered under the basic death benefit alone, but additional options exist. Civil claims may allow surviving spouses or dependants to pursue compensation for loss of income, services, or future financial support. 

If the deceased was a primary earner or caregiver, the financial impact can be long-term, and optional income replacement benefits under the auto insurance policy may also provide support, depending on the coverage chosen before the accident occurred.