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
Kevin Landry The first look at regulations for cannabis edibles, extracts and topicals has arrived. The Federal Government has opened a 60-day consultation period respecting the strict regulation of additional cannabis products. Notice of the consultation was accompanied…
Read MoreErin Best and Kara Harrington “This case is about pain, how it was caused, by what accident and the opinions of dueling experts.”¹ “In this case, like so many, the assessment of the evidence depends…
Read MoreJonathan Coady and Michael Fleischmann Overview Once again, the time has come to review the year that was and to chart the course for the year ahead. For municipalities, developers and planning professionals throughout Prince…
Read MoreFollowing the various Stakeholder Consultations (which Stewart McKelvey participated in on behalf of Nova Scotia Employers), the Government has changed the Labour Standards Code Regulations effective January 1, 2019 to: a) provide for up to…
Read MoreVersion française à suivre Sara Espinal Henao Canada has expanded its permanent and temporary immigration requirements to include biometrics – the measurement of unique physical characteristics, such as fingerprints and facial features. The new requirements,…
Read MoreMany businesses rely on trade-mark, copyright, and patent law for the protection of their intellectual property (IP). The Federal Government recently proposed changes to IP laws, which may impact your business. Bill C-86, Budget Implementation Act,…
Read MoreJulia Parent and David Wedlake (special thanks to Graham Haynes for his assistance) In a rare decision from the bench, the Supreme Court of Canada (“SCC”) allowed the appeal of Callidus Capital Corporation in the matter…
Read MoreMark Tector and Killian McParland ‘Tis again the season for the company holiday party. And while the party planners are starting to break out the eggnog, there are some lessons learned from seasons past to…
Read MoreMark Tector and Richard Jordan The Nova Scotia Occupational Health and Safety Act (the “Act”) provides that “contractors” and “constructors” have similar, but not identical, responsibilities, with a “Constructor” having greater authority and more responsibility for the health and…
Read MoreJulia Parent and Graham Haynes On October 29, 2018, the federal government tabled national pay equity legislation as part of its second budget implementation bill, Bill C-86. This legislation is targeted at reducing the portion of the…
Read More