Regulation - LGIC
Proposed amendments to Regulation 664 (Automobile Insurance) under the Insurance Act regarding an insured's election not to recover damages from their insurer under the Direct Compensation - Property Damage (DCPD) coverage.
Regulation Number(s):
Regulation 664
Instrument Type:
Regulation - LGIC
Bill or Act:
Insurance Act
Summary of Proposal:
The Protect, Support and Recover from COVID-19 Act (Budget Measures), 2020, which received Royal Assent on December 8, 2020, includes amendments to the Insurance Act to permit an insured to elect, in accordance with the regulations, not to recover damages from their insurer under the Direct Compensation - Property Damage (DCPD) coverage.
Proposed amendments to Regulation 664 (Automobile Insurance) under the Insurance Act, if approved, would provide that:
- An insured may elect not to recover damages from their insurer under the DCPD coverage by providing written confirmation to their insurer.
- If an insured who has provided written confirmation to their insurer changes which automobile is insured under the policy, or adds an automobile to the policy, the insured shall provide a new written confirmation to their insurer.
- An insured may revoke their confirmation at any time by providing notice to their insurer.
The Ministry of Finance requests comments regarding these proposed amendments to Regulation 664 (Automobile Insurance) under the Insurance Act regarding an insured's election not to recover damages from their insurer under the DCPD coverage.
A consultation draft of these proposed amendments to Regulation 664 (Automobile Insurance) under the Insurance Act regarding an insured's election not to recover damages from their insurer under the DCPD coverage is attached.
Proposed amendments to Regulation 664 (Automobile Insurance) under the Insurance Act, if approved, would provide that:
- An insured may elect not to recover damages from their insurer under the DCPD coverage by providing written confirmation to their insurer.
- If an insured who has provided written confirmation to their insurer changes which automobile is insured under the policy, or adds an automobile to the policy, the insured shall provide a new written confirmation to their insurer.
- An insured may revoke their confirmation at any time by providing notice to their insurer.
The Ministry of Finance requests comments regarding these proposed amendments to Regulation 664 (Automobile Insurance) under the Insurance Act regarding an insured's election not to recover damages from their insurer under the DCPD coverage.
A consultation draft of these proposed amendments to Regulation 664 (Automobile Insurance) under the Insurance Act regarding an insured's election not to recover damages from their insurer under the DCPD coverage is attached.
Analysis of Regulatory Impact:
These proposed amendments to Regulation 664 (Automobile Insurance) under the Insurance Act regarding an insured's election not to recover damages from their insurer under the DCPD coverage, if approved, would not increase compliance costs on businesses and key business sectors, and would have no impact on the Broader Public Service or non-profit sectors. There is no cost to government as a result of this proposal.
Further Information:
Regulation 664 (Automobile Insurance)
Insurance Act
Consultation - Amending Reg. 664 of R.R.O. 1990
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Proposal Number:
21-MOF003
Posting Date:
February 11, 2021
Comments Due Date:
March 29, 2021
Contact Address:
Auto Insurance Policy Unit
Financial Institutions Policy Branch
Ministry of Finance
95 Grosvenor Street
Frost Building North, 4th Floor
Toronto, ON
M7A 1Z1
Financial Institutions Policy Branch
Ministry of Finance
95 Grosvenor Street
Frost Building North, 4th Floor
Toronto, ON
M7A 1Z1