In Ontario, motorcycles, mopeds and scooters must be insured. The minimum level of coverage required for third party liability is $200,000 to pay for personal injury claims and the cost of repairing property damaged in an accident. Ontario has adopted a no-fault system for motor vehicle insurance, which means that when an accident occurs, the policyholder receives benefits and has the cost of repairs to the vehicle covered by his or her own insurance company.
The motorcycle insurance policy also includes a Statutory Accident Benefits package. This part of the policy pays for medical and rehabilitation expenses as the result of the accident. The cost of receiving attendant care is included. The Benefits plan pays a certain amount of income replacement benefits (based on a percentage of the amount earned before the accident) as well. The driver of the motorcycle, as well as his or her passenger, is covered under an Ontario insurance policy. In the case of a fatal accident, a survivor benefit may be paid. Funeral expenses may also be covered under the policy.
Uninsured motorist coverage is mandatory for customers who wish to buy a motorcycle policy in Ontario. It provides protection in a situation where a rider is killed or injured by a hit and run driver or where the responsible driver does not have insurance coverage.