Client Update: To B or Not To B? Potential Changes to PEI Auto Insurance
Significant changes may be coming to the standard automobile policy in PEI, including increases to the accident benefits available under Section B and an increase to the so-called “cap” applicable to claims for minor personal injury.
The PEI superintendant of insurance is preparing a formal proposal to government recommending significant changes to Section B of the standard automobile insurance policy in PEI, to provide more benefits for those injured in motor vehicle accidents.
The proposal is at the preliminary stages, thus it is not yet clear which changes will be put forward. Some of the changes being considered by the superintendant are as follows:
1. Increase in No-Fault Accident Benefits
No-fault accident benefits available under the PEI standard auto policy (i.e. Section B benefits) are expected to increase, mirroring the accident benefits available in New Brunswick. If approved, this would mean significant increases to the current limits available in PEI:
|Accident Benefits||Current PEI Benefits||Current NB Benefits||Potential new PEI Benefits|
|Meical and Rehabilitation Expenses||$25,000||$50,000||$50,000|
|Death Benefits – Head of Household||$10,000||$50,000||$50,000|
|Death Benefits – Spouse of Head of Household||$10,000||$25,000||$25,000|
|Death Benefits – Dependent||$2,000||$5,000||$5,000|
|Weekly Income||Lesser of $140/week or 80 per cent of the insured’s gross weekly income from employment – maximum of 104 weeks||Lesser of $250/week or 80 per cent of the insured’s gross weekly income from employment – maximum of 104 weeks||Lesser of $250/week or 80 per cent of the insured’s gross weekly income from employment – maximum of 104 weeks|
2. Changes to the Cap for Minor Personal Injury
The superintendent is expected to recommend that the so-called cap on non-pecuniary damages for minor personal injury increase from $2,500 to $7,500 or $8,000, bringing it in line with Nova Scotia and New Brunswick. He might also recommend that the PEI cap be indexed with the consumer price index.
Although details are still currently unavailable, changes may also be proposed to the definition of “minor personal injury”, possibly adopting the language in New Brunswick or Nova Scotia.
3. Direct Compensation for Property Damage
The superintendant is expected to propose a shift to direct compensation for property damage.
4. Introduction of Catastrophic Accident Benefits
The superintendent is also considering the adoption of catastrophic accident benefits within the automobile insurance policy, but they are not expected to form part of the superintendant’s upcoming proposal to government. These benefits would expand the coverage provided by Section B to include excess medical and rehabilitation coverage for individuals who are “catastrophically” injured in a motor vehicle accident, but are unable to recover from a third party.
What this means for you
Some or all of these amendments could be included in legislation to be passed this fall (2013). The superintendant has made it clear that there will be an opportunity for insurers to provide input after his proposal is made to government.
Bryan Mills and John Morse On May 21, 2019, the New Brunswick Labour and Employment Board (”Board”) dismissed an application by the New Brunswick Union of Public and Private Employees (“Union”) seeking certification as bargaining…Read More
Jonathan Coady and Justin Milne The Ontario Court of Appeal has found that the Greenhouse Gas Pollution Pricing Act¹ is valid federal legislation.² The Act implements national minimum pricing standards to reduce greenhouse gas (“GHG”) emissions.…Read More
Richard Niedermayer, TEP, Jennifer Taylor and Bhreagh Ross, summer student There is a right to testamentary freedom under section 7 of the Charter, according to a recent decision of the Nova Scotia Supreme Court. In…Read More
John Samms Introduction Much ink has been spilled on the controversial 1969 power contract between Hydro-Quebec and CFLCo (the contract) and last week the Quebec Court of Appeal added to the pile with its decision…Read More
Kevin Landry On June 14, 2019, Health Canada announced the release of the final version of amendments to the Cannabis Regulations, which will permit for the production and sale of edibles, extracts and topicals. The…Read More
We are pleased to present the fourth issue of Discovery, our very own legal publication targeted to educational institutions in Atlantic Canada. While springtime for universities and colleges signal the culmination of classes, new graduates…Read More
Grant Machum and Richard Jordan In an earlier article, we considered an employer’s options when an employee departs and takes with them the social media contacts they have obtained during the course of their…Read More
Matthew Jacobs and Daniel Roth (summer student) “… we cannot be a Blockbuster government serving a Netflix society.” – The Hon. Minister Navdeep Bains paraphrasing the Hon. Scott Brison (May 2019, at the Empire…Read More
Tauna Staniland, Andrea Shakespeare, Kimberly Bungay and Alycia Novacefski The federal government has introduced new record keeping requirements for private, federally formed corporations governed by the Canada Business Corporations Act (“CBCA”). The amendments to the…Read More