Client Update: Auto Insurance – Direct compensation for property damage is coming to PEI
In our May 20, 2014 client update, we reported on significant changes affecting automobile insurance in Prince Edward Island, including changes to no-fault benefits available under section B and changes to the damages cap for minor personal injury. Most of those changes went into effect on October 1, 2014. The final change provides for direct compensation for property damage (“DCPD”), and was recently proclaimed to come into force on October 1, 2015. The amendments to the PEI Insurance Act setting out the DCPD regime can be viewed here.
DCPD entitles an insured to obtain payment directly from his or her own insurer for damage to an automobile. Recovery is based on the insured’s degree of fault, as established under a set of fault determination rules (“Rules”) prescribed by regulation. The Rules provide specific fault determinations for described accident scenarios, and prescribe that:
- the insured’s degree of fault is to be determined without reference to the point of contact between the vehicles, and without reference to circumstances such as weather conditions, road conditions, visibility, or the actions of pedestrians;
- if two Rules apply, and one Rule would result in the insured being 100% at fault and the other would result in the insured not being at fault, the insured is considered to be 50% at fault;
- otherwise, if more than one Rule applies, the Rule that attributes the least degree of fault to the insured is determinative; and
- if the accident is not captured by any of the Rules, or if there is not enough information to determine the degree of fault, fault shall be determined using the ordinary rules of law.
A complete copy of the fault determination Rules can be found in the regulations available here. The Rules for DCPD apply on and after October 1, 2015.
The foregoing is intended for general information only and is not intended as legal advice. If you have any questions, visit our firm website at www.stewartmckelvey.com to contact or learn more about our Prince Edward Island lawyers practicing in the area of Insurance.
Archive
Brian G. Johnston, QC, Jennifer Thompson and Daniel Roth The Government of Canada has announced the final Regulations Amending the Employment Equity Regulations (“Regulations”). The Regulations come into force on January 1, 2021 and will bring increased pay transparency to federally regulated…
Read MoreIncluded in Discovery: Atlantic Education & the Law – Issue 07 Nicholas Russon and Kathleen Nash In December 2018, the Ontario Cabinet approved a direction for the Minister of Training, Colleges and Universities (“Minister”) to…
Read MoreWe are pleased to present the fourth installment of Beyond the border, a publication aimed at providing the latest information to clients about new programs and other immigration-related information that may be pertinent to employers of…
Read MoreIncluded in Discovery: Atlantic Education & the Law – Issue 07 Stephen Penney and Tyler Callahan Universities continue to work creatively to meet market demands despite consistent declines in public funding. Consequently, untenured term appointments…
Read MoreIncluded in Discovery: Atlantic Education & the Law – Issue 07 Sacha Morisset Confidentiality regarding the terms of the settlement of a legal dispute is a key consideration for many parties. Most accept that the…
Read MoreChad Sullivan and Kathleen Nash In June 2020, the Federal Government released the new Work Place Harassment and Violence Prevention Regulations (“Regulations”) along with Bill C-65, An Act to amend the Canada Labour Code (“Code”).…
Read MoreRob Aske As we wrote about earlier, Canada’s federal government has proposed a replacement to our national privacy law for commercial transactions known as the Personal Information Protection and Electronic Documents Act (“PIPEDA”). The new…
Read MoreKatharine Mack After a relatively carefree Atlantic summer, the bubble has officially burst: as COVID-19 cases begin to rise, New Brunswick, Prince Edward Island and Newfoundland and Labrador have all announced that they will be…
Read MoreWe are pleased to present the seventh issue of Discovery, our very own legal publication targeted to educational institutions in Atlantic Canada. While ‘back to school’ may look a little different this year, Stewart McKelvey is…
Read More2021: The Year of the Overshare Richard Niedermayer, TEP, Sarah Almon and Madeleine Coats Governments around the world are taking steps to increase transparency at the expense of privacy. In Canada, federal government strategies to…
Read More