Regulation - LGIC
Changes to the fleet definition in Regulation 664 under the Insurance Act
Regulation Number(s):
Regulation 664
Instrument Type:
Regulation - LGIC
Bill or Act:
Insurance Act
Summary of Decision:
Approved.
Further Information:
Insurance Act
Regulation 664
2016 Ontario Budget – Supporting the Sharing Economy
Ontario Reg. 252/16: AUTOMOBILE INSURANCE
Private Vehicles for Hire - Ridesharing: Fleet Insurance Policy
Proposal Number:
16-MOF010
Posting Date:
April 15, 2016
Summary of Proposal:
The government is committed to securing the safety of drivers and their passengers by ensuring they have adequate insurance coverage. This proposed change is part of the government's response to ensure consumers are protected when using new types of transportation services, while also working to help level the playing field between new and existing business models.
Section 15 of Regulation 664 under the Insurance Act (the Act) provides that the rate and risk classification approval process under sections 410 to 417 of the Act does not apply to any contract of automobile insurance that insures a fleet.
Section 4 of Regulation 664 provides that insurers are exempt from the minimum period of notice of cancellation or variation provision in section 236 of the Act for every contract of automobile insurance that insures a fleet.
Regulation 664 defines a fleet as meaning a group of not less than five automobiles,
a) that are under common ownership or management,
b) of which at least five are commercial vehicles, public vehicles or vehicles used for business purposes, and
c) of which any that are subject to a lease agreement for a period in excess of 30 days are leased to the same insured person
The government is seeking input from the public on a new concept for the fleet definition.
The new concept would define a fleet as a group of not less than five automobiles, of which at least five are commercial vehicles, public vehicles or vehicles used for business purposes, provided that the group of automobiles meets one of the two below sets of criteria.
Set A
- The automobiles are under common ownership or management, and
- Any automobiles that are subject to a lease agreement for a period in excess of 30 days are leased to the same insured person
Set B
- The automobiles are available for hire through a common online-enabled application or system for the pre-arrangement of transportation, and
- The automobiles are insured under a policy of automobile insurance in which the automobile owner or lessee, as the case may be, has coverage as an insured named in the contract
Section 15 of Regulation 664 under the Insurance Act (the Act) provides that the rate and risk classification approval process under sections 410 to 417 of the Act does not apply to any contract of automobile insurance that insures a fleet.
Section 4 of Regulation 664 provides that insurers are exempt from the minimum period of notice of cancellation or variation provision in section 236 of the Act for every contract of automobile insurance that insures a fleet.
Regulation 664 defines a fleet as meaning a group of not less than five automobiles,
a) that are under common ownership or management,
b) of which at least five are commercial vehicles, public vehicles or vehicles used for business purposes, and
c) of which any that are subject to a lease agreement for a period in excess of 30 days are leased to the same insured person
The government is seeking input from the public on a new concept for the fleet definition.
The new concept would define a fleet as a group of not less than five automobiles, of which at least five are commercial vehicles, public vehicles or vehicles used for business purposes, provided that the group of automobiles meets one of the two below sets of criteria.
Set A
- The automobiles are under common ownership or management, and
- Any automobiles that are subject to a lease agreement for a period in excess of 30 days are leased to the same insured person
Set B
- The automobiles are available for hire through a common online-enabled application or system for the pre-arrangement of transportation, and
- The automobiles are insured under a policy of automobile insurance in which the automobile owner or lessee, as the case may be, has coverage as an insured named in the contract
Contact Address:
Senior Manager
Insurance Policy Unit
Financial Institutions Policy Branch
Ministry of Finance
95 Grosvenor Street
Frost Building North, 4th Floor
Toronto, ON
M7A 1Z1
autoinsurance@ontario.ca
Insurance Policy Unit
Financial Institutions Policy Branch
Ministry of Finance
95 Grosvenor Street
Frost Building North, 4th Floor
Toronto, ON
M7A 1Z1
autoinsurance@ontario.ca
Effective Date:
July 4, 2016
Decision:
Approved