Direct Compensation Agreement

Identifying your loss

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Case 13 - Chain reaction


In chain reaction accidents, the owner of the leading vehicle not having had prior contact with another vehicle or object, is completely indemnified for the physical damage sustained by his vehicle.

Owner of all other vehicles following are indemnified for 50% of the front and 100% of the rear end damage, except however the last vehicle for which no indemnity is payable.

Note : A series of successive contacts between parked or stopped vehicles occurring when a moving vehicle strikes the last vehicle in the line, causing the vehicles to smash into each other, is not considered a chain reaction.


Unlike the other collision scenarios presented, in the case of a chain reaction, the Fault Chart indicates the indemnity percentage the insured will receive (not his liability percentage).


Applying the Direct Compensation Agreement:

Damage to the front of the vehicle:
The insured will be indemnified for half of the amount of his damage if policy only covers civil liability (section A of the Contract). He will be indemnified for the other half of the damage if his policy also covers collision (section B of the Contract). The insured will have to pay 50% of his deductible.

Damage to the rear of the vehicle:
The insured will be indemnified even if the collision is not covered under his insurance policy. The insured will not have to pay a deductible.

Last vehicle:
The insured will be indemnified if the collision is covered under his insurance policy (section B of the Contract). The insured will then have to pay a deductible. The insured won't be indemnified if his policy doesn't cover collision (section B).

For more information, contact your insurer.
You can also contact the Insurance Information Centre.


The content of these web pages is provided for information only and to make it easier to understand the DCA. It is not legally binding. The official version of the DCA takes precedence. Your insurer will establish the portion of your liability in the accident.

Download the official version of the Direct Compensation Agreement.

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