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
Rick Dunlop and Richard Jordan Employers who are currently defending a human rights complaint filed by an employee governed by a collective agreement should take note of the Supreme Court of Canada (“SCC”)’s decision in…
Read MoreIn our latest labour and employment webinar, a panel of our lawyers from across the Atlantic provinces discuss current and emerging legal issues on harassment and discrimination, and resulting workplace investigations. Speakers Sean Kelly, Stephen…
Read MoreKenneth McCullogh, QC and Conor O’Neil, P.Eng. On December 18, 2020, the Legislative Assembly of New Brunswick passed the Construction Remedies Act. After nearly a year the new legislation will come into force on Monday,…
Read MoreBrian Tabor, QC, Simon McCormick and Eyoab Begashaw The Mortgage Regulation Act (“MRA”), in conjunction with the regulations made pursuant thereto (“MRA Regulations”), will come into force on November 1, 2021 and replace the Mortgage…
Read MoreStephen Penney and Joe Thorne Balancing a municipal budget has always been a challenging task in Newfoundland and Labrador, and this is particularly true in a year of extreme weather events and a global pandemic.…
Read MoreWe are pleased to present the seventh installment of Beyond the border, a publication aimed at providing the latest information to clients about new programs and other immigration-related information that may be pertinent to employers of…
Read MoreMeghan Foley On September 28, 2021, the St. John’s Board of Trade hosted the Department of Health and Community Services, Digital Government and Service NL, and the NL Centre for Health Information, to provide an…
Read MoreHarold Smith, QC and Chelsea Drodge Background On September 29, 2020, the government introduced Bill C-5, An Act to amend the Bills of Exchange Act, the Interpretation Act and the Canada Labour Code (National Day…
Read MoreRichard Jordan The federal election will be held on Monday, September 20, 2021. Under s. 132 of the Canada Elections Act (“Act”), every employee who is an elector (i.e. a Canadian citizen and 18 years…
Read More*Last updated: September 9, 2021 (originally published September 3, 2021) Katharine Mack The Nova Scotia government announced earlier today, September 3, that it would annually recognize September 30 as Truth and Reconciliation Day, beginning in…
Read More