Many believe Section B benefits expire after four years, but that’s not entirely true. Let’s clear up the confusion.
What Are Section B Benefits?
At a high level, Section B benefits are part of your auto insurance policy and provide ‘no-fault’ coverage regardless of who caused the accident, including:
- Medical and rehabilitation expenses (like physiotherapy and chiropractic care, etc.)
- Income replacement if you’re unable to work due to injuries
- Funeral and death benefits in the unfortunate event of a fatal accident
The 4-Year Myth
The timelines for Section B benefits are found in the NSPF #1 Standard Auto Policy that governs Section B benefits. In Nova Scotia, Section B benefits typically cover medical and rehabilitation expenses for up to four years from the date of the accident. However, this doesn’t mean all your benefits are entirely cut off at the four-year anniversary.
When Do Section B Benefits Actually End?
- Income replacement benefits: payable for up to two years (if disabled from your own occupation). These benefits are payable indefinitely if you are deemed totally disabled from any occupation after the two-year period.
- Death and funeral benefits: must be claimed within 180 days of the accident.
- Medical and rehabilitation benefits: generally available for a four-year period after the accident**, until the $50,000 coverage is exhausted, or the individual reaches ‘maximum medical improvement’, i.e., an indefinite plateau in their recovery (whichever comes first).
**However, in Rushton V. Economical Mutual Insurance Co., 2007 NSSM 90: the Court confirmed ongoing treatment needs extending beyond the four-year deadline were reasonable and necessary as a natural extension of treatment started before deadline expired, making the expenses qualify as though incurred within the coverage period. Key considerations for funding beyond four years include:
- Were the expenses tied to treatment identified within four years of the accident?
- Were they part of ongoing treatment that was deferred to a later date?
- Was the treatment a certainty to occur after four years, rather than a speculative or optional future service?
Why This Matters
Understanding the limits and timelines of Section B benefits ensures you don’t leave money on the table or miss out on valuable support during recovery. If you have ongoing medical needs or face challenges returning to work after the four-year mark, you may still have options through other sources of compensation, including personal injury claims against the at-fault driver (if applicable).