Skip to content

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.

SHARE

Archive

Search Archive


 
 

Limits to government powers in the regulation of colleges and universities

December 17, 2020

Included in Discovery: Atlantic Education & the Law – Issue 07 Nicholas Russon and Kathleen Nash In December 2018, the Ontario Cabinet approved a direction for the Minister of Training, Colleges and Universities (“Minister”) to…

Read More

Beyond the border: Immigration update – December 2020

December 16, 2020

We are pleased to present the fourth 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 More

The precariat, bargaining and union advocacy

December 15, 2020

Included in Discovery: Atlantic Education & the Law – Issue 07 Stephen Penney and Tyler Callahan Universities continue to work creatively to meet market demands despite consistent declines in public funding. Consequently, untenured term appointments…

Read More

Confidentiality clauses can be worth more than the paper they’re written on

December 11, 2020

Included in Discovery: Atlantic Education & the Law – Issue 07 Sacha Morisset Confidentiality regarding the terms of the settlement of a legal dispute is a key consideration for many parties. Most accept that the…

Read More

Federal Work Place Harassment and Violence Prevention Regulations – a Guideline

December 8, 2020

Chad Sullivan and Kathleen Nash In June 2020, the Federal Government released the new Work Place Harassment and Violence Prevention Regulations (“Regulations”) along with Bill C-65, An Act to amend the Canada Labour Code (“Code”).…

Read More

Privacy practice tune-up – getting ready for the Consumer Privacy Protection Act

December 7, 2020

Rob Aske As we wrote about earlier, Canada’s federal government has proposed a replacement to our national privacy law for commercial transactions known as the Personal Information Protection and Electronic Documents Act (“PIPEDA”). The new…

Read More

The bubble has burst: New restrictions announced for Nova Scotia

November 27, 2020

Katharine Mack After a relatively carefree Atlantic summer, the bubble has officially burst: as COVID-19 cases begin to rise, New Brunswick, Prince Edward Island and Newfoundland and Labrador have all announced that they will be…

Read More

Discovery: Atlantic Education & the Law – Issue 07

November 24, 2020

We are pleased to present the seventh issue of Discovery, our very own legal publication targeted to educational institutions in Atlantic Canada. While ‘back to school’ may look a little different this year, Stewart McKelvey is…

Read More

New trust reporting and disclosure requirements under the Income Tax Act

November 24, 2020

2021: The Year of the Overshare   Richard Niedermayer, TEP, Sarah Almon and Madeleine Coats Governments around the world are taking steps to increase transparency at the expense of privacy. In Canada, federal government strategies to…

Read More

Digital Charter Implementation Act, 2020: The long-awaited overhaul of private sector privacy legislation in Canada

November 20, 2020

Koren Thomson and Sarah Byrne On November 17, 2020, the Digital Charter Implementation Act, 2020 (“Act”) was introduced as Bill C-11. This is the first major update to the federal private sector privacy regime in…

Read More

Search Archive


Scroll To Top