Direct Compensation
In order to create more coverage options for consumers, Direct Compensation (or DC) for third party liability claims is being introduced.
With Direct Compensation, a driver who is in an accident is compensated by his or her own insurance company for losses caused by a third party instead of looking to the third party insurer.
Direct Compensation (DC) means that instead of going through the added expense and frustration of recovering damages from someone else's insurer, drivers will now be able to deal with their own insurance company to receive the benefits they deserve, similar to the way Comprehensive and Collision claims are handled today.
Direct Compensation does not remove the concept of fault from loss recovery. It merely changes the source of funds.
The advantage of Direct Compensation is that it permits the introduction of more coverage choices, including the No-Frills package and the possibility of a deductible.
Direct Compensation does not change the consumer's right to sue for other damages. Those rights are maintained, while claims for property damages are generally settled faster.
Direct Compensation will be used to compensate property damages (DCPD) caused by third parties. Non-economic damages will be decided as under the current tort system.