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 |
| Funeral Expenses | $1,000 | $2,500 | $2,500 |
| 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.
Archive
Employers are navigating uncharted territory when it comes to COVID-19 vaccines, from employee health and safety, to workplace policies, privacy and human rights concerns, a panel of Firm lawyers sit down and explore the complicated…
Read MoreKevin Landry and Annelise Harnanan (summer student) Recently, the Advisory Committee on Open Banking released the Final Report of the Advisory Committee on Open Banking, (“Report”) confirming its intention to implement a broader, more modernized…
Read MoreKathleen Nash In a recent decision, McCallum v Saputo,¹ the Manitoba Court of Appeal confirmed that an employer does not have a “free-standing, actionable duty” to investigate an employee’s conduct prior to dismissal.² The Court of Appeal held…
Read MoreBrendan Sheridan The Government of Canada is undertaking a phased approach to re-opening the international border. While the government has had limited exemptions to the travel prohibitions throughout the pandemic, the loosening of the restrictions…
Read MoreKevin Landry On August 3, 2021 the Canadian Securities Administrators (“CSA”) announced plans to combine the Investment Industry Regulation Organization of Canada (“IIROC”) with the Mutual Fund Dealers Association of Canada (“MFDA”). This move will…
Read MoreJohn Samms, with the assistance of Olivia Bungay (summer student) In a recent decision, S.D. v Eastern Regional Integrated Health Authority, 2021 NLSC 100, the Supreme Court of Newfoundland and Labrador denied the Plaintiff’s application…
Read MoreRichard Jordan and Folu Adesanya The 2021 Nova Scotia general election will be held on August 17, 2021. With the election looming, many Nova Scotians will be wondering the same question: “Am I entitled to…
Read MoreIn the second episode of our labour and employment podcast, Workplace Issues in Atlantic Canada: A Legal Perspective, host and practice group leader Rick Dunlop speaks with Annie Gray and Dante Manna about the Federal…
Read MoreIncluded in Discovery: Atlantic Education & the Law – Issue 08 Clarence Bennett It is increasingly difficult to reconcile the rights of a student charged with sexual assault, with the rights of the victim, along…
Read MoreIncluded in Discovery: Atlantic Education & the Law – Issue 08 Jacob Zelman Striking the proper balance Public discourse around instances of sexual violence is at an all-time high. In the wake of the #MeToo…
Read More