Section B benefits in Newfoundland are optional. That is the difference from the rest of Atlantic Canada, where the coverage is mandatory. In Newfoundland and Labrador, Section B is an add-on to the Standard Automobile Policy (SPF 1). Most policies carry it, but not all, and the first thing to check after a crash is whether yours does. If it does, the insurer owes the benefits as a matter of contract, and the limits are lower than most people expect: $25,000 for medical care and $140 a week for lost income.
The insurer will pay what the policy says, and will look for a reason to stop. This post sets out what Section B covers, who qualifies, the deadlines, and the arguments insurers use to cut benefits off.
What Are Section B Benefits in Newfoundland?
Section B is the accident benefits part of the auto policy. It is a claim against your own insurer, not against the other driver, and it does not require proof of fault. Section A, third party liability, is the lawsuit against the driver who caused the crash. Section B and Section A proceed in parallel.
Section B covers three things: medical and rehabilitation expenses, weekly indemnity for lost income, and death and funeral benefits. The medical benefit is capped at $25,000 a person and pays for reasonable and necessary treatment the provincial plan does not cover, such as private physiotherapy, equipment and psychological counselling.
Section B is the payor of last resort. A workplace health plan pays first, and Section B pays what is left once the private limits are used up.
Section B Benefits in Newfoundland Cover the Driver, Passengers and Struck Pedestrians
Coverage runs with the vehicle. The driver, the passengers, and any pedestrian or cyclist struck by the insured vehicle can claim. A passenger in a friend’s car during a car accident claims on the friend’s policy.
The exclusions are the usual ones. Driving without a valid licence, driving impaired, or using the vehicle for a criminal purpose gives the insurer grounds to deny. A denial on an exclusion should go to a St. John’s personal injury lawyer before you accept it, because insurers apply the exclusions more widely than the policy wording supports.
A pedestrian with no car and no policy claims under the policy on the vehicle that hit them. Where more than one vehicle is involved, the priority of payment rules decide which insurer pays first.
Priority follows the vehicle you were in, then the vehicle that struck you, then your own policy. The insurer that is not first in line says so and pays nothing, so the order has to be established before the forms go in.
The Medical Benefit Is $25,000 Over Four Years
The medical and rehabilitation limit is $25,000 a person, available for four years from the date of the accident. Chiropractic care, occupational therapy and nursing services are covered if they are reasonable and necessary.
Insurers cut medical benefits off with an Independent Medical Examination. The insurer’s doctor reports that your recovery has plateaued at maximum medical improvement, and the payments stop. The answer is your own treating physician’s opinion, put in writing, and if necessary a claim against the insurer for breach of the policy.
Reasonable and necessary is judged treatment by treatment. A prescription from the treating physician for a course of physiotherapy is the usual proof. An adjuster’s view that fewer sessions would do is not a medical opinion and does not decide the question.
Home modifications after a permanent disability are covered, but $25,000 does not go far when the injury is severe. In those cases the Section A lawsuit carries the long-term care costs, alongside any long-term disability and injury claims under a workplace plan.
Weekly Indemnity Pays 80 Percent of Earnings to $140 a Week
If you cannot work, Section B pays 80 percent of gross weekly earnings to a maximum of $140 a week. The cap has not moved in years.
To qualify, you must have been employed at the time of the accident, or be 18 or older and have worked at least six of the twelve months before it. Payments run for up to 104 weeks while you are totally disabled from your own occupation. After 104 weeks the test changes to any occupation you are suited for by education or training, and most claims end there.
The six-of-twelve-months test catches seasonal workers. A person laid off for the winter who worked the previous summer qualifies. A person between jobs for more than six months does not. The employer’s statement of earnings fixes both the eligibility and the 80 percent figure.
$140 a week does not replace a wage. The difference between your actual salary and the Section B payment is claimed in the Section A lawsuit as excess wage loss. The firm runs both claims on a no win, no fee basis.
The Housekeeper Benefit Pays $70 a Week for 12 Weeks
A person who was the principal unpaid housekeeper for their home and cannot do the work receives $70 a week for up to 12 weeks. It pays for cleaning or childcare while you recover.
Adjusters rarely mention it. A stay-at-home parent injured in a motorcycle accident is entitled to it and should ask for it by name.
Death and Funeral Benefits Are Capped and Paid to Dependants
When a collision is fatal, Section B pays a funeral benefit capped at $1,000 and a lump-sum death benefit to the surviving spouse or dependants. The amount of the death benefit depends on the age of the deceased and their role in the household.
The firm handles the forms and the insurer contact for grieving families, and looks at fatal injury claims against the at-fault driver at the same time.
Applying for Section B Benefits in Newfoundland Means Notice in 30 Days and Proof In 90
Notify the insurer as soon as possible. Written notice is due within 30 days and the formal Proof of Claim within 90. A late notice is the first thing an insurer cites when it denies.
Your notice of claim, an employer’s statement of earnings for the income benefit, and a medical certificate from your doctor make up the application. An error on any of them delays payment. The firm reviews all three before they go in.
Insurers Deny on Pre-Existing Conditions, IMEs and the 104-Week Test
Pre-existing condition is the most common. The insurer says your back pain was there before the crash. The medical records from before and after the collision decide that argument, which is why the first doctor’s visit matters.
Termination is the second. The insurer pays for three months of physiotherapy and then stops on the strength of an IME. If your doctor says treatment is still needed, that is a dispute under the policy and it can be litigated. The firm has over 100 reported decisions, many of them against insurers.
The third is the 104-week test. When the definition of disability tightens, insurers end the income benefit whether or not the claimant can work at anything. That decision is reviewable.
A denial letter states a reason. Keep it. The reason given is the one the insurer has to defend, and a reason that changes between the letter and the litigation is a point for the claimant.
The $5,000 Deductible Applies to the Lawsuit, Not to Section B
Newfoundland and Labrador applies a $5,000 deductible to non-pecuniary damages, the pain and suffering award, in 2026. The deductible applies to the Section A lawsuit against the other driver. It does not apply to Section B. Medical benefits are paid from the first dollar.
The two claims are linked at settlement. The at-fault insurer deducts the Section B benefits already paid from the tort award so the same loss is not paid twice. The firm runs both claims from one file so that the deduction is for money the client actually received. The court’s own information is at the Newfoundland and Labrador Courts website.
Why Choose the Mike Murphy Law Group?
Michael B. Murphy, KC, is a former Attorney General and Minister of Justice and has practised for over 40 years. The firm has five offices in Atlantic Canada, including St. John’s, and handles Section B disputes alongside the injury claim, whether the file is a pedestrian accident or a contested insurance denial.
Personal injury claims are taken on a no win, no fee basis. There are no fees unless the firm recovers money for you.
FAQ
Is Section B Insurance Mandatory in Newfoundland?
No. In Newfoundland and Labrador, Section B is optional coverage added to the SPF 1 policy. Most brokers include it. Check the policy documents now, before a collision happens.
How Long Do I Have to Apply for Section B Benefits in NL?
Written notice within 30 days and a formal Proof of Claim within 90 days. If you are past those dates, contact the firm, because a late claim is not always a lost one.
What Is the Maximum Amount for Medical Bills Under Section B?
$25,000 a person, for expenses incurred within four years of the accident. Physiotherapy, chiropractic care and other treatment your doctor considers necessary are covered. Costs above the limit are claimed in the lawsuit against the at-fault driver.
Can I Get Section B Benefits If the Accident Was My Fault?
Yes. Section B is no-fault. The benefits are paid whoever caused the collision.
Does Section B Cover My Full Salary If I Can’t Work?
No. It pays 80 percent of gross weekly income to a maximum of $140 a week. The rest of the lost wages are recovered through the Section A lawsuit against the at-fault driver.
If you are struggling to access your Section B benefits in Newfoundland, call the Mike Murphy Law Group at 709-383-2757 or contact the firm through the secure online intake form. There are no fees unless the firm wins your case.