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
Included in Discovery: Atlantic Education & the Law – Issue 09 (also available in French, here) Tessa Belliveau In its recent and interesting decision regarding Zaki v. University of Manitoba, 2021 MBQB 178 (CanLII), the…
Read MoreIncluded in Discovery: Atlantic Education & the Law – Issue 09 Conor O’Neil, P.Eng. and Sarah-Jane Lewis Construction lien legislation exists in every province and territory in Canada. Liens are a creature of statute introduced,…
Read MoreChristopher Marr, TEP and Michael Forestell As detailed in our previous update , in March 2020 New Brunswick implemented the Unclaimed Property Act (“Act”), with the intention that the New Brunswick Financial and Consumer Services…
Read MoreMargaret Anne Walsh and Graeme Stetson Beneficial Ownership and Corporate Transparency On September 1, 2020, the Government of Prince Edward Island proclaimed into force Bill no. 34 which amends the Business Corporations Act (“BCA”). The…
Read MoreIncluded in Discovery: Atlantic Education & the Law – Issue 09 Brendan Sheridan With the 2021 fall school semester under way, it has been a year and a half since the COVID-19 pandemic first resulted…
Read MoreIncluded in Discovery: Atlantic Education & the Law – Issue 09 Jennifer Taylor and Calvin DeWolfe The Canadian Association of University Teachers (“CAUT”) censure process has attracted widespread attention in recent months, following CAUT’s…
Read MoreKillian McParland and Emily Murray On Friday, November 26, 2021, the Liberal federal government moved to fulfill its campaign promise to provide 10 days of paid medical leave of absence (also referred to as “sick…
Read MoreIn our newest webinar, members of our Labour and Employment group provide insights on a variety of legal issues in today’s workplaces, in quick and easy to consume summaries. Employers can join Rick Dunlop, Brian…
Read MoreWe are pleased to present the ninth issue of Discovery, our very own legal publication targeted to educational institutions in Atlantic Canada. Fall is here again, and academic institutions in the region have cautiously welcomed…
Read MoreMark Tector and Katharine Mack Over the last few months many employers have been implementing COVID-19 vaccination policies in their workplaces. Last week, two Ontario arbitration decisions were released which dealt with the legality of…
Read More