Skip to content

Client Update: PEI Auto Insurance Reforms: Change is Coming

No really. We mean it this time.

During the Spring 2014 sitting of the legislature, the PEI government passed legislation that will result in significant changes to the standard automobile policy, effective October 1, 2014. Most notably, the amended legislation will:

  • Increase no-fault accident benefits (i.e. Section B benefits).
  • Increase the “cap” on minor personal injuries.
  • Make significant changes to the definition of “minor personal injury”.

The government has also laid the groundwork for a shift to direct compensation for property damage, although direct compensation is not expected to come into effect until sometime in 2015.

  1. Increase in No-Fault Accident Benefits

No-fault accident benefits available under the PEI standard auto policy are set to increase significantly, mirroring those in New Brunswick. The following benefits will apply to motor vehicle liability policies issued or renewed on or after October 1, 2014:

  1. Changes to the “Cap” for Minor Personal Injury

The “cap” on non-pecuniary general damages for motor vehicle accidents occurring on or after October 1, 2014 is set to increase to $7,500 – up from the current amount of $2,500. The existing cap of $2,500 will continue to apply to accidents occurring prior to October 1, 2014.

The cap will also be indexed cumulatively in January of each year, beginning in 2016. The maximum recoverable amount will be the amount in place on the date of the accident.

  1. Changes to the Definition of “Minor Personal Injury”

The amended legislation will not only increase the amount of the “cap” for accidents occurring on or after October 1, 2014, but will also restrict the definition of “minor personal injury” to sprains, strains and whiplash-associated disorders that do not result in a serious impairment. This is a significantly more narrow definition than currently exists in PEI.

The amended legislation also provides guidance on matters relevant to the determination of “minor personal injury”, the assessment of multiple injuries, and the impact of a claimant’s failure to follow reasonable treatment advice.

  1. Direct Compensation for Property Damage

Although not yet in force, direct compensation for property damage is expected to be in effect sometime in 2015. Fault determination rules have not yet been prescribed.

What This Means For You

Greater benefits will be available for accidents occurring on or after October 1, 2014. These changes may result in new strategic considerations in the defence of auto-related personal injury claims in PEI.

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 www.stewartmckelvey.com to contact or learn more about our Prince Edward Island lawyers practicing in the area of Insurance.

SHARE

Archive

Search Archive


Search
Generic filters

 
 

Nova Scotia relaunches Paid Sick Leave Program

January 12, 2022

Rick Dunlop and Will Wojcik Nova Scotia’s COVID-19 Paid Sick Leave Program (“Program”) is now open for applications. Employers can now be reimbursed for employees’ time off work to comply with public health requirements, including…

Read More

Retailer’s mandatory mask mandate – no discrimination based on disability or religious belief

December 30, 2021

Sean Kelly and Will Wojcik A recent decision of the Human Rights Tribunal of Alberta (“Tribunal”) dismissing a customer’s allegations of discrimination based on physical disability and religious belief against a Natural Food Store’s mandatory mask…

Read More

New Brunswick Court of Appeal rejects claim for unjust enrichment in ordinary wrongful dismissal action

December 22, 2021

Clarence Bennett and Lara Greenough In ExxonMobil Business Support Centre Canada ULC v Birmingham, the New Brunswick Court of Appeal considered the equitable remedy of unjust enrichment in the context of an ordinary wrongful dismissal…

Read More

COVID-19 vaccination soon to become mandatory in all federally regulated workplaces in Canada

December 17, 2021

Brian Johnston, QC and Katharine Mack COVID-19 vaccination policies have become more prevalent. Public sector employees have been mandated to get vaccinated in a number of jurisdictions, the federal government has mandated vaccinations in the…

Read More

Work life balance and ban on non-competes – changes to laws in Ontario

December 17, 2021

*Last updated: December 17, 2021 (originally published December 1, 2021) Mark Tector and Will Wojcik Bill 27, Working for Workers Act (“Act”), 2021, received Royal Assent on December 2, 2021, and is now in force in Ontario.…

Read More

Private posts can lead to a lack of academic professionalism: the relationship between social media and post-secondary institutions and the duty of procedural fairness

December 9, 2021

Included in Discovery: Atlantic Education & the Law – Issue 09 (also available in French, here) Tessa Belliveau In its recent and interesting decision regarding Zaki v.  University of Manitoba, 2021 MBQB 178 (CanLII), the…

Read More

A new era: expanded obligations for owners under New Brunswick’s Construction Remedies Act

December 7, 2021

Included in Discovery: Atlantic Education & the Law – Issue 09 Conor O’Neil and Sarah-Jane Lewis Construction lien legislation exists in every province and territory in Canada. Liens are a creature of statute introduced, at…

Read More

A legal lost and found: proposed rules for New Brunswick’s Unclaimed Property Act now published

December 6, 2021

Christopher Marr, TEP and Michael Forestell As detailed in our previous update , in March 2020 New Brunswick implemented the Unclaimed Property Act (“Act”), with the intention that the New Brunswick Financial and Consumer Services…

Read More

Legislative amendments impacting Prince Edward Island companies

December 3, 2021

Margaret Anne Walsh and Graeme Stetson Beneficial Ownership and Corporate Transparency On September 1, 2020, the Government of Prince Edward Island proclaimed into force Bill no. 34 which amends the Business Corporations Act (“BCA”). The…

Read More

What the government is doing to continue support for international students

December 2, 2021

Included in Discovery: Atlantic Education & the Law – Issue 09 Brendan Sheridan With the 2021 fall school semester under way, it has been a year and a half since the COVID-19 pandemic first resulted…

Read More

Search Archive


Search
Generic filters

Scroll To Top