Proposed Changes to the Automobile Insurance Act and the Insurance Companies Act

Proposed Changes to the Automobile Insurance Act and the Insurance Companies Act

April 17, 2019

Proposed changes to the Automobile Insurance Act and the Insurance Companies Act received second reading in the House of Assembly on April 15, 2019.

Key changes to the Automobile Insurance Act include:

  • A requirement that an insurer will notify the Registrar of Motor Vehicles of a cancellation or expiration of any auto insurance policy.
  • A person who intends to commence an action arising directly or indirectly from the use or operation of an automobile is required to provide written notice to the insured of the intention to commence an action within 120 days after the accident.
  • A requirement that damages be reduced by the accident benefit payments received by the plaintiff or to which the plaintiff is entitled.
  • An insured is entitled to recover damages to its automobile and contents directly from its insurer. Recovery will be based on the degree of fault of the insured as determined under the fault determination rules to be prescribed by regulation.
  • An insured is entitled to commence an action against the insurer where the insured is not satisfied with the degree of fault established under the fault determination rules.
  • A person who has accident benefits and who sustained a particular type of injury (ex: sprains, strains and whiplash) can elect to seek treatment immediately and without prior approval of the insurer with direct billing to the automobile insurance company. These benefits will be paid prior to accessing private health insurance.
  • Uninsured motorists will be prohibited from accessing the Uninsured Automobile Fund to claim any heads of damage.
  • The statutory deductible on General Non-Pecuniary damages will be doubled to $5,000.
  • All insurers will be required to apply a winter tire discount on premiums.

Key changes to the Insurance Companies Act include:

  • The Facility Association will establish a risk sharing pool for members of the association.
  • The maximum rate of commission that may be paid to a broker for Facility Association business in relation to taxis and limousine services is 3%.
Cox & Palmer publications are intended to provide information of a general nature only and not legal advice. The information presented is current to the date of publication and may be subject to change following the publication date.