Client Update: Auto Insurance – Direct compensation for property damage is coming to PEI
In our May 20, 2014 client update, we reported on significant changes affecting automobile insurance in Prince Edward Island, including changes to no-fault benefits available under section B and changes to the damages cap for minor personal injury. Most of those changes went into effect on October 1, 2014. The final change provides for direct compensation for property damage (“DCPD”), and was recently proclaimed to come into force on October 1, 2015. The amendments to the PEI Insurance Act setting out the DCPD regime can be viewed here.
DCPD entitles an insured to obtain payment directly from his or her own insurer for damage to an automobile. Recovery is based on the insured’s degree of fault, as established under a set of fault determination rules (“Rules”) prescribed by regulation. The Rules provide specific fault determinations for described accident scenarios, and prescribe that:
- the insured’s degree of fault is to be determined without reference to the point of contact between the vehicles, and without reference to circumstances such as weather conditions, road conditions, visibility, or the actions of pedestrians;
- if two Rules apply, and one Rule would result in the insured being 100% at fault and the other would result in the insured not being at fault, the insured is considered to be 50% at fault;
- otherwise, if more than one Rule applies, the Rule that attributes the least degree of fault to the insured is determinative; and
- if the accident is not captured by any of the Rules, or if there is not enough information to determine the degree of fault, fault shall be determined using the ordinary rules of law.
A complete copy of the fault determination Rules can be found in the regulations available here. The Rules for DCPD apply on and after October 1, 2015.
The foregoing is intended for general information only and is not intended as legal advice. If you have any questions, visit our firm website at stewmac.arrdev.ca to contact or learn more about our Prince Edward Island lawyers practicing in the area of Insurance.
Archive
EDITOR’S COMMENT This edition of Atlantic Employers’ Counsel focuses on key areas of employment standards in Atlantic Canada. Employment standards legislation outlines the rights and obligations of employees and requirements that apply to employers in…
Read MoreNEW TORT OF CYBERBULLYING On May 10, 2013 the Nova Scotia legislature passed the Cyber-safety Act (Bill 61). When this bill comes into force, it will give rise to a new tort of cyberbullying that…
Read MoreGOVERNMENT ACTION In the Economic Action Plan 2010, the Harper Government committed to bring greater clarity to how mortgage prepayment penalties were calculated. As part of the commitment, on February 26, 2013 the government released…
Read MoreSTEWART MCKELVEY WELCOMES BACK WANDA DOIRON AS MANAGER, CORPORATE SERVICES – NOVA SCOTIA You might remember Wanda from her time in our Corporate Services group from 2002 to 2008. Since then, she has worked in-house…
Read MoreREASONABLE PEOPLE DOING QUESTIONABLE THINGS: CONFLICTS OF INTEREST AND JUST CAUSE Can a unionized employee moonlight in his off hours to earn some extra money by doing the same work he does for his daytime…
Read MoreStewart McKelvey’s Vision Improving Legal Analysis (SVILA*) is an e-discovery project and litigation management tool. For more information on our e-discovery services, download the SVILA e-discovery document.
Read MoreIN THIS ISSUE: A New Brunswick business lawyer’s perspective by Peter Klohn Why Canada’s immigration rules matter to your business by Andrea Baldwin Financing Energy Projects during the Project Lifecycle by Lydia Bugden, Colm St. Roch Seviour and Tauna Staniland Download…
Read MoreYellow diamonds in the light And we’re standing side by side As your shadow crosses mine What it takes to come alive It’s the way I’m feeling I just can’t deny But I’ve gotta let…
Read MoreINTRODUCTION On December 6, 2012, The Nova Scotia Department of Environment (NSE) released Draft Ministerial Protocols (the “Draft Protocols”) related to contaminated sites. The release of the Draft Protocols has been eagerly anticipated. The adoption…
Read MoreRecent changes to the Rules of the Supreme Court, 1986, SNL 1986, c 42, Sch D On December 14, 2012, several changes were made to the Rules of the Supreme Court. These changes include: who may act…
Read More