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


 
 

Get Ready for Anti-Spam

February 17, 2014

CASL is a new federal law aimed at eliminating unsolicited and malicious electronic communications. Originally introduced in December 2010, the majority of CASL’s provisions will come into force on July 1, 2014. Once in effect,…

Read More

Atlantic Employers Counsel – Winter 2014

February 13, 2014

The Termination Meeting: A time and a place for everything The decision has been made, but the ship hasn’t yet sailed. Somebody has to deliver the bad news and as difficult as this might be,…

Read More

Client Update: Consistent Use: The Collection of Union Members’ Personal Information by their Unions

February 10, 2014

The Public Service Labour Relations Board concluded that an employer was required to provide home contact information about bargaining unit members to the union which represents them because this information is needed by the union…

Read More

Client Update: Outlook for the 2014 Proxy Season

February 5, 2014

In preparing for the 2014 proxy season, you should be aware of some regulatory changes that may impact disclosure to and interactions with your shareholders. This update highlights what is new in the 2014 proxy…

Read More

Client Update: Torts: Unlawful Interference with Economic Relations

February 4, 2014

In a decision released by the Supreme Court of Canada (“the Court”) on January 31, 2014, the Court clarified the law with respect to the tort of interference with economic relations by unlawful means. Joyce,…

Read More

Client Update: 2013 Labour & Employment Atlantic Canada Legislative Update

December 23, 2013

As we move into 2014, we know our region’s employers will want to be aware of new legislation that has passed or could soon pass that may affect them. The following is what has become…

Read More

Client Update: New Forms of Unpaid Leave under Newfoundland and Labrador Labour Standards Act

December 12, 2013

What’s new? Our employer clients will be familiar with the Labour Standards Act, which sets out the employment standards applicable in Newfoundland and Labrador. Two amendments were made to the legislation this week, both of which…

Read More

Client Update: First Contract Arbitration

December 9, 2013

As many of you will now know, the Nova Scotia Government introduced legislation on Friday, December 6, 2013, amending provisions of the Nova Scotia Trade Union Act dealing with First Contract Arbitration. This client update sets out…

Read More

Client Update: Supreme Court of Canada confirms that international organization enjoys immunity from wrongful dismissal suit commenced by senior employee

December 4, 2013

In a decision that will largely be of interest to international organizations that have been granted some type of immunity in Canada, the Supreme Court of Canada (SCC) has confirmed that international organizations enjoy immunity…

Read More

Client Update: Time to Update Workplace Policies in PEI

December 2, 2013

The Prince Edward Island (“PEI”) legislature has proposed changes to the PEI Human Rights Act to add “gender expression” and “gender identity” as new protected grounds of discrimination. First introduced on November 13, 2013 the…

Read More

Search Archive


Scroll To Top