OTL Ontario Automobile Insurance License Practice Test

In a no-fault insurance system, the premise is that each party involved in an accident will turn to their own insurance provider for compensation for their losses, regardless of who caused the accident. However, there are circumstances under which an insured party can pursue additional claims against the at-fault driver.

Option C is correct because it acknowledges that while the no-fault system limits the ability to sue, there are certain conditions under which an insured party can still claim damages from the at-fault driver. For instance, if the insured party has suffered serious injuries or significant monetary loss that exceeds the thresholds established by the no-fault system, they may be able to file a claim outside the no-fault framework. This route typically applies to cases involving catastrophic injuries or damages that surpass policy limits.

Thus, the flexibility of the no-fault system accommodates circumstances that allow for claims against the at-fault driver, specifically when serious injuries or exceptions to the overall rules in the system are present.