The loss of a loved one in a fatal motor vehicle accident is a traumatic experience, often accompanied by emotional and financial burdens. In Alberta, several systems provide financial support and relief to the beneficiaries of deceased individuals. This article outlines the various benefits available to beneficiaries of a victim of a fatal accident under provincial and federal programs, including Section B of the Alberta Automobile Policy, the Fatal Accidents Act, the Canada Pension Plan (CPP), and the Alberta Funeral Benefits.
Death Benefits Under Section B
Section B of the Alberta Owner’s Automobile Policy entitles a person injured in a car accident to several accident benefits, collectively known as no-fault benefits, which include death benefits. The death benefit allows the family of the victim of a fatal accident to have certain financial support while they are grieving the loss. The expenses covered under the death benefits are:
• Funeral expenses of up to $6,150 for each deceased person. What this entails is that the maximum amount paid per deceased person per family as funeral expenses is $6, 150. Therefore, assuming only one person is deceased because of a fatal accident, irrespective of the number of the surviving members of the deceased’s family, the maximum number of funeral expenses the family is entitled to is $6,150. However, in a circumstance where there are two deceased persons in the same family, the maximum number of funeral expenses for which the family is entitled is $12,300.
• Grief counselling of up to $500 per family for each deceased person. Put simply, the maximum amount paid per deceased person per family for grief counselling is $500. Therefore, if there is only one person deceased because of a fatal accident, irrespective of the number of the surviving members of the deceased’s family, the maximum number of funeral expenses the family is entitled to is $500 However, in a circumstance where there are two deceased persons in the same family, the maximum number of funeral expenses for which the family is entitled is $1000.
• Death benefits: a lump sum death benefit will also be paid to the beneficiary of the deceased person. The amount to be paid to the survivors is usually determined by the age, status of the deceased person in the family at the time of death, the number of survivors, and the living situation (i.e., whether the family was living with the deceased in the same household at the time of death).
It is worth noting that Section B benefits are paid by the automobile insurance company of the person involved in the fatal accident and are only applicable to motor vehicle accidents.
Fatal Accident Act
In addition to section B, the survivors of the deceased person who died in a fatal accident can bring a suit in court for compensation against the at-fault driver under the Fatal Accident Act. Under this Act, the beneficiaries are:
Out-of Pocket Expenses
The beneficiary can also recover some out-of-pocket expenses incurred as a result of the fatal accident, especially where there are excesses not covered by the insurance company of the deceased under Section B. The expenses that can be recovered under the Fatal Accident Act by the beneficiaries are:
- Care expenses of the deceased person incurred from the time of injury and death;
- Travel and accommodation expenses for visiting the deceased from the time of the injury and death;
- Funeral expenses and all connected supplies and services;
- Grief counselling fees to the benefit of the spouse, adult interdependent partner, parent, child, brother or sister of the deceased person.
Bereavement Damages
Aside from the other damages/ compensation claimed in an action brought under the Fatal Accident Act, the court can also award bereavement damages for grief, loss of care, guardianship and companionship of the deceased person. It must be noted that this may be granted without proof of the emotional damage caused by the fatal accident. A breakdown of the bereavement damages awarded is as follows:
• $82 000 to the spouse or adult interdependent partner of the deceased person,
• $82 000 total to the parent or parents of the deceased person to be divided equally if the action is brought for the benefit of both parents, and
• $49 000 to each deceased person’s children.
It’s important to note that for a spouse or adult interdependent partner of the deceased person to be eligible for bereavement damages, they must have been living with the deceased at the time of death.
Federal Framework
Canada Pension Plan (CPP) Death Benefit
The beneficiaries of a victim of a fatal accident are also eligible for CPP death benefits, a one-time payment payable to the beneficiaries of the deceased contributor.
The beneficiary applying for the CPP death benefit must make sure the qualification requirements are met.
The application should be made as soon as possible after the contributor’s death. Where the contributor has an estate, the executor named in the will should apply for the benefit within 60 days of the contributor’s death. The administrator named by the Court to administer the estate can also apply for the death benefit.
However, where there is no estate, or the executor has not applied for the death benefits, others may apply for the benefit in this order of priority:
• The person or institution that paid or is responsible for paying for the deceased contributor’s funeral expenses
• The deceased contributor’s surviving spouse or common-law partner
• The deceased contributor’s next-of-kin
Beginning January 1, 2025, the amount of the CPP death benefit is $2,500 and a possible top-up of $2,500. The top-up amount can only be received where the deceased contributor qualifies for a death benefit and have never received a disability benefit, post-retirement disability benefit or retirement pension under the CPP or Quebec Pension Plan (QPP) and does not have a surviving spouse or common-law partner who is eligible to receive a survivor’s pension.
Canada Pension Plan (CPP) Survivor’s Pension
The spouse or common law partner of the deceased contributor may also receive a monthly payment of the contributor’s retirement pension. The amount to be paid to the spouse is determined by the age of the surviving spouse and whether they are receiving other CPP benefits. A spouse or common law partner 65 years or older receives 60% of the deceased contributor’s retirement pension if they are not receiving other CPP benefits, and a spouse or common law partner under 65 years or older receives a flat rate portion and 35% of the deceased contributor’s retirement pension if they are not receiving other CPP benefits.
Canada Pension Plan (CPP) Children’s Benefits
A child of a deceased contributor under the age of 25 whose deceased parent has made sufficient contributions to the CPP monthly benefit payment. To qualify, a child aged 18 to 25 must be in full-time or part-time attendance at a recognized school or university.
Alberta Funeral Benefits
This benefit is available to eligible low-income Albertans when other programs or sources of funding to cover funeral expenses are insufficient. The deceased is eligible for Alberta funeral benefits if the deceased is:
• a member of an (Assured Income for the Severely Handicapped) AISH or Income Support household, or an Alberta resident with low income,
• a Canadian citizen, permanent resident, sponsored immigrant, refugee or refugee claimant and
• not eligible to receive a similar benefit from any other program or source.
For Albertans who were not receiving AISH or Income Support at the time of their death, their financial eligibility is assessed by taking into account their income, assets, Canada Pension Plan Death Benefit, life insurance payout and prepared funeral arrangement.
While financial compensation cannot alleviate the pain of losing a loved one, there are a range of benefits that provide support to grieving families, from insurance payouts under Section B to legal remedies through the Fatal Accident Act and federal and provincial assistance aimed at easing the financial burden during a difficult time. Understanding your benefits is the first step toward accessing the support you are entitled to.
Our team provide client-focused and empathetic services to help our clients navigate loss and overwhelming circumstances.
We are available 24/7 to review the facts of your specific case and provide information to you on the options available, including assistance for beneficiaries or survivors of victims of the Fatal Accident Act.
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