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Member Notices

July 4, 2012

Attention: AMSC Members – Please distribute to all appropriate personnel

Some common insurance FAQs

About Family Protection (SEF 44)

This endorsement provides protection to the insured, their spouse and certain other relatives should they suffer bodily injury or death caused by an inadequately insured motorist. This endorsement is subject to a limit, based on the limits of your liability coverage as well as the other motorist’s limit of liability coverage.

Is coverage automatically included?
While some insurers automatically include this coverage for car insurance policies, some will only do so at your request and for a small fee. This coverage is included under the Automobile policy provided by AUMA/AMSC

What is the risk if I am not covered?
If you do not have this coverage and an accident with an underinsured motorist results in injury or death to you or one of your family members, there may only be a limited payment, if there is a payment at all, as a form of compensation.

Why is this not covered under the Third Party Liability section of my insurance policy?
The Third Party Liability section of your car insurance policy will cover injury or property damage to third parties only. The definition of a third party does not extend to include those passengers in the insured automobile; only the driver and passengers in any other automobile involved in the accident.

How do I reduce my risk?
Consider the cost of such an endorsement, should it not be automatically included in your car policy, and whether you want to take on the potential future cost of compensation and / or payment for bodily injury should you not have this coverage.

About Limited Waiver of Depreciation/Replacement Cost (AB) (SEF 43R)

This endorsement will waive any depreciation on repair or replacement of a new vehicle (subject to certain restrictions) should it suffer an insured loss. The term for which this coverage is offered varies with insurer (typically 24-30 months). Your AUMA policy provides for 30 months and you must be the original owner.

Is coverage automatically included?
Not all insurers will include this coverage automatically; but, if asked to do so, will often add this for a small fee. Your AUMA/AMSC policy provides this coverage to all its members.

What is the risk if I am not covered?
Should you suffer a total loss, for example, within one year of purchasing your car, your insurance company will take depreciation into account when calculating the claim settlement. Depending on the purchase price, this could reduce the value by thousands of dollars. It is usually one’s intention to replace a total loss with the same or a similar car; in the case of a new car, owners tend to want a new replacement. When depreciation is taken into account, the owner will be left with the cost of the difference between the claims settlement and the actual cost of the same new car.

About Limited Waiver of Depreciation (Specified Lessee) / Replacement Cost (Specified Lessee) (AB) (SEF 43 R (L)

What is it?
This endorsement is the same as Limited Waiver of Depreciation except that it applies to cars which are leased.

If you would like more information on this subject or any General Insurance related topics please contact Shirley Dumbleton at 780-310-AUMA, Ext 7405 or at

If you would like more information on this subject or any General Insurance related topics please contact Shirley Dumbleton at 780-310-AUMA, Ext 7405.

Thank you,

Brian Hamblin
Executive Officer, Risk & Energy Services

Shirley Dumbleton
Director, Insurance Services

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