Skip to content

Client Update: PEI Auto Insurance Reforms: Change is Coming

No really. We mean it this time.

During the Spring 2014 sitting of the legislature, the PEI government passed legislation that will result in significant changes to the standard automobile policy, effective October 1, 2014. Most notably, the amended legislation will:

  • Increase no-fault accident benefits (i.e. Section B benefits).
  • Increase the “cap” on minor personal injuries.
  • Make significant changes to the definition of “minor personal injury”.

The government has also laid the groundwork for a shift to direct compensation for property damage, although direct compensation is not expected to come into effect until sometime in 2015.

  1. Increase in No-Fault Accident Benefits

No-fault accident benefits available under the PEI standard auto policy are set to increase significantly, mirroring those in New Brunswick. The following benefits will apply to motor vehicle liability policies issued or renewed on or after October 1, 2014:

  1. Changes to the “Cap” for Minor Personal Injury

The “cap” on non-pecuniary general damages for motor vehicle accidents occurring on or after October 1, 2014 is set to increase to $7,500 – up from the current amount of $2,500. The existing cap of $2,500 will continue to apply to accidents occurring prior to October 1, 2014.

The cap will also be indexed cumulatively in January of each year, beginning in 2016. The maximum recoverable amount will be the amount in place on the date of the accident.

  1. Changes to the Definition of “Minor Personal Injury”

The amended legislation will not only increase the amount of the “cap” for accidents occurring on or after October 1, 2014, but will also restrict the definition of “minor personal injury” to sprains, strains and whiplash-associated disorders that do not result in a serious impairment. This is a significantly more narrow definition than currently exists in PEI.

The amended legislation also provides guidance on matters relevant to the determination of “minor personal injury”, the assessment of multiple injuries, and the impact of a claimant’s failure to follow reasonable treatment advice.

  1. Direct Compensation for Property Damage

Although not yet in force, direct compensation for property damage is expected to be in effect sometime in 2015. Fault determination rules have not yet been prescribed.

What This Means For You

Greater benefits will be available for accidents occurring on or after October 1, 2014. These changes may result in new strategic considerations in the defence of auto-related personal injury claims in PEI.

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.

SHARE

Archive

Search Archive


 
 

Cap or no cap? Court of Appeal confirms damages are substantive law in interprovincial tort claims

November 12, 2024

Joe Thorne & Jennifer Taylor In 2005, a bus accident occurred in Nova Scotia. The people injured in the accident were residents of Newfoundland and Labrador, which is where they sued the bus owner and driver…

Read More

2024 Nova Scotia election: Employer obligations

October 31, 2024

By Killian McParland and Sophie Poulos As recently announced, the next Nova Scotia provincial election will be held on Tuesday, November 26, 2024. Under Nova Scotia’s Elections Act, every employee who is an eligible voter (i.e.…

Read More

Greener light for growth – Province provides further clarity on renewable energy future in Nova Scotia

October 24, 2024

By Sadira Jan, Dave Randell, Nancy Rubin, Kimberly MacLachlan, and Onye Njoku Bill 471, the Advancing Nova Scotia Opportunities Act, received Royal Assent and introduces changes to the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation…

Read More

Bill C-49 is blowin’ a gale: A significant step in offshore renewable energy legislation

October 22, 2024

By Sadira Jan, Dave Randell, Nancy Rubin, G. John Samms, Kimberly MacLachlan, and  Jamie Gamblin Bill C-49 received Royal Assent and will amend the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia…

Read More

2024 New Brunswick election: employer obligations

October 17, 2024

By John Morse The New Brunswick provincial election is set to take place on Monday, October 21, 2024, with polling hours between 10:00 a.m. to 8:00 p.m. Under the New Brunswick Elections Act, all employees…

Read More

CAPSA releases guidelines on Capital Accumulation Plans and Pension Plan Risk Management

September 11, 2024

Level Chan and Dante Manna On September 9, 2024, the Canadian Association of Pension Supervisory Authorities (CAPSA) released the long-awaited final revisions to Guideline No. 3 – Guideline for Capital Accumulation Plans (CAPs) and the…

Read More

Nova Scotia legislative update: “Stronger Workplaces for Nova Scotia Act” – Bill No. 464

September 6, 2024

Sean Kelly and Tiegan A. Scott On September 5, 2024, the “Stronger Workplaces for Nova Scotia Act” (Bill No. 464) was introduced in the Nova Scotia House of Assembly for first reading by the Honourable Jill Balser…

Read More

Historic human rights ruling: Alberta tribunal sets record with landmark damages award, redefining the rules on compensation and deterrence

September 3, 2024

John A.C. Morse and Lauren Sorel The Human Rights Tribunal of Alberta (the “Tribunal”) recently awarded three complainants a total of $273,274.91 in compensation, with $155,000.00 of this amount designated as general damages – a…

Read More

Zoning changes and constructive taking: Newfoundland and Labrador Court of Appeal affirms the finding in Index v Paradise

August 28, 2024

Stephen Penney and Megan Kieley1 The Newfoundland and Labrador Court of Appeal’s recent decision in Index Investments Inc v Paradise (Town)2 is a significant decision for municipalities. The Court of Appeal endorsed the Newfoundland and…

Read More

Immigration red flags: five organizational issues that open employers to risk

August 15, 2024

By Kathleen Leighton & Brittany Trafford The Temporary Foreign Worker Program (“TFWP”) and International Mobility Program (“IMP”) provide Canadian employers the opportunity to hire foreign workers to address their labour needs, particularly when qualified Canadians…

Read More

Search Archive


Scroll To Top