When an insured purchases Opt Basic Economic Loss coverage (OBEL), what type of loss cannot be covered?

When an insured purchases Opt Basic Economic Loss coverage (OBEL), it specifically addresses certain types of economic losses associated with injuries from motor vehicle accidents. This coverage typically includes compensation for essential expenses like lost wages, medical expenses, and rehabilitation costs that arise due to the injuries sustained.

Pain and suffering, however, is not classified as an economic loss covered by OBEL. Instead, it falls under a different category often referred to as non-economic damages. These encompass the subjective, emotional, and psychological impact of an injury, which are not directly related to out-of-pocket expenses or lost earnings. Therefore, while OBEL provides valuable financial assistance for tangible and quantifiable losses, it does not extend to compensating for the intangible hardships associated with pain and suffering. This distinction is critical for understanding the limits of the coverage offered under an OBEL policy.