Skip to content

Client Update – Protecting the innocent in property insurance: recent amendments to Nova Scotia’s Insurance Act limit “criminal or intentional act” exclusion clauses

Jennifer Taylor

Recent amendments to the Nova Scotia Insurance Act are designed “to protect the financial interests of an innocent person when the person’s property is damaged by another person with whom that person shares an insurance policy.”1 The consequences of domestic violence provide the backdrop for these amendments, which came into force on April 18, 2018. The amendments apply to property insurance policies and will primarily impact homeowners’ policies.

As a result of the amendments, policies can no longer exclude coverage for an innocent insured who experiences property loss or damage as a result of their co-insured’s criminal or intentional wrongdoing.

When she announced these amendments to the Insurance Act, Finance Minister Karen Casey noted that they would especially assist women, who are “disproportionately” affected by domestic violence and may suffer property loss or damage at their home as a result.

Nova Scotia is one of several Canadian provinces — including New Brunswick — that have made similar amendments to their insurance legislation.

Going forward, Nova Scotia property policies will be interpreted in accordance with the new section 13A of the Insurance Act, regardless of how the policy’s exclusion clause governing criminal and intentional acts is worded.

The new section 13A of the Insurance Act provides:

13A (1) Where a contract contains a term or condition excluding coverage for loss or damage to property caused by a criminal or intentional act or omission of an insured or any other person, the exclusion applies only to the claim of a person

(a) whose act or omission caused the loss or damage;

(b) who abetted or colluded in the act or omission;

(c) who

(i) consented to the act or omission, and

(ii) knew or ought to have known that the act or omission would cause the loss or damage; or

(d) who is not a natural person.

(2) Nothing in subsection (1) allows a person whose property is insured under the contract to recover more than the person’s proportionate interest in the lost or damaged property.

(3) A person whose coverage would be excluded but for subsection (1) shall

(a) co-operate with the insurer in respect of the investigation of the loss, including submitting to an examination under oath if requested by the insurer;

(b) in addition to producing any documents required by the contract, produce for examination, at a reasonable place and time specified by the insurer, all documents in the person’s possession or control that relate to the loss; and

(c) comply with any other requirement prescribed by the regulations.

NOTE: This update provides general information only and is not intended to offer legal advice. If you have specific questions about how the amendments might affect you, please contact the head of our firm-wide Insurance Defence Practice Group, Shelley Wood; Tyana Caplan; or any of Stewart McKelvey’s insurance lawyers in Nova Scotia.


1See the Explanatory Note to Bill 106, as well as “Amendments to the Insurance Act Protect Nova Scotians” (March 29, 2018).
2Donalee Moulton, “New Brunswick amends Insurance Act to better protect victims of domestic violence” in The Lawyer’s Daily (December 27, 2017).
3Insurance Act, RSNS 1989, c 231, as amended by SNS 2018, c 12 (Bill 106). The amendments have not yet been consolidated into the online version of the Insurance Act.

SHARE

Archive

Search Archive


 
 

Recognizing subtle discrimination in the workplace: insights from recent legal cases

March 4, 2024

By Sheila Mecking and Michiko Gartshore Subtle discrimination can have a much stronger and longer effect on employees when not properly addressed. It can also result in costly consequences for an employer who does not…

Read More

Immediate changes to travel eligibility for citizens of Mexico

February 29, 2024

By Brittany Trafford and Brendan Sheridan Today Immigration, Refugees and Citizenship Canada (“IRCC”) has announced significant changes to the travel requirements for Mexican citizens. As of February 29, 2024 at 11:30p.m. Eastern Time, all electronic…

Read More

Updated guidance on business reporting obligations under Canada’s supply chain transparency legislation

February 23, 2024

By Christine Pound, ICD.D., Twila Reid, ICD.D., Sarah Dever Letson, CIPP/C, Hilary Newman and Daniel Roth Introduction As we reported on November 30, 2023, the Fighting Against Forced Labour and Child Labour in Supply Chains…

Read More

Trustees beware! New trust reporting and disclosure requirements under the Income Tax Act are here – are you ready for them?

February 21, 2024

By Richard Niedermayer, K.C., TEP  & Rackelle Awad New trust disclosure rules originally announced on February 27, 2018, are now in force, and trusts with taxation years ending on or after December 31, 2023 are…

Read More

Proposed Criminal Interest Rate Regulations: exemptions to the lower criminal interest rate

February 14, 2024

By David Wedlake and Andrew Paul In late December 2023, the Federal Government issued draft Criminal Interest Rate Regulations under the Criminal Code. These proposed regulations follow the Budget Implementation Act, 2023, No. 1 which…

Read More

Outlook for 2024 Proxy Season

February 9, 2024

By Andrew Burke, Colleen Keyes, Gavin Stuttard, David Slipp and Logan Walters With proxy season on the horizon, many public companies are once again preparing their annual disclosure documents and shareholder materials for their annual…

Read More

Significant changes announced for new study permit applications

February 6, 2024

By Brendan Sheridan and Tiegan Scott The Government of Canada recently announced further changes to the international student program that not only limits the number of new study permit applicants per year, but also increases…

Read More

Plans of arrangement come to Newfoundland and Labrador

January 30, 2024

By Tauna Staniland, K.C., ICD.D, Joe Thorne, and Nadine Otten What can you do when your corporation wants to complete a complex transaction requiring significant corporate restructuring that cannot be easily completed under the corporation’s…

Read More

Energy Watch

January 29, 2024

Stewart McKelvey is pleased to present Energy Watch – a review of key legislative and policy advancements in the renewable energy sector in 2023 in each of Newfoundland and Labrador, Nova Scotia and New Brunswick…

Read More

Beyond the border: A year end immigration wrap-up

December 21, 2023

We are pleased to present Beyond the border: A year end immigration wrap-up. Compiled by Lawyers from our Immigration team, this 2023 update covers topics including the Government of Canada’s ambitious immigration plans for the future;…

Read More

Search Archive


Scroll To Top