BILL NO. 86
3rd Session, 61st General Assembly
60 Elizabeth II, 2011
Fair Automobile Insurance (2011) Act
The Honourable Graham Steele
Minister responsible for the Insurance Act
First Reading: November 9, 2011
Second Reading: November 17, 2011
Third Reading: December 8, 2011 (LINK TO BILL AS PASSED)
Clause 1 provides a short title to the Act.
Clauses 2 and 3 amend the Insurance Act to permit more than one Deputy Superintendent of Insurance to be appointed.
Clauses 4 and 5 provide for a levy on automobile insurers to recover costs incurred by volunteer fire departments in responding to motor vehicle accidents and clarifies that this does not preclude a fire department from making a claim for costs incurred in responding to an accident.
Clause 6 provides for direct compensation for property damage with respect to automobile insurance in Nova Scotia so that an insured deals with the insured's own insurer for property damage claims
Clause 7 corrects two typographical errors and adds regulation-making authority to the Insurance Act with respect to the priority of motor vehicle liability insurance for the payment of damages caused by the lessee of a leased vehicle or the person renting a rental vehicle from a renter.
(a) includes and clarifies provisions concerning the onus of proof in a civil action related to loss or damage caused by a motor vehicle and the liability of an owner or driver of a motor vehicle which are being moved to the Insurance Act from the Motor Vehicle Act;
(b) limits the liability of a motor vehicle leasing or rental business to a maximum of $1 million where a person who is leasing or renting the motor vehicle from the business is liable for damages with respect to an accident involving the motor vehicle and the leasing or rental business is otherwise vicariously liable; and
(c) includes provisions that maintain the existing law which exempts a conditional seller or leasing business that sells or leases a motor vehicle with an option to purchase from liability for damages with respect to an accident involving the vehicle.
Clause 9 requires periodic reviews of the Insurance Act.
Clauses 10 and 11 replace the definition of "owner" of a vehicle in the Motor Vehicle Act to clarify it and co-ordinate it with the amendments to the Insurance Act respecting leased and rented vehicles.
Clause 12 repeals provisions of the Motor Vehicle Act that are moved, with changes, to the Insurance Act or are out of date.
Clause 13 provides that some provisions of this Act are subject to proclamation.
1 This Act may be cited as the Fair Automobile Insurance (2011) Act.
2 Clause 3(t) of Chapter 231 of the Revised Statutes, 1989, the Insurance Act, is amended by striking out "the" in the second line and substituting "a".
3 (1) Subsection 4(1) of Chapter 231 is amended by striking out "persons in the public service to be Superintendent of Insurance and Deputy Superintendent of Insurance." in the first, second and third lines and substituting the following clauses:
4 The heading immediately after Section 107 of Chapter 231 is amended by adding "AND THIS ACT" immediately after "ACT" in the second line.
(4) Where an automobile insurer fails to remit the funds payable with respect to the levy in accordance with this Section, the Superintendent may suspend the licence of the automobile insurer to transact automobile insurance in the Province effective after August 31st of the year in which the funds are due.
(b) the automobile that suffers the damage or in respect of which the contents suffer damage is insured under a contract evidenced by a motor vehicle liability policy issued by an insurer who is licensed to undertake automobile insurance in the Province or who has filed with the Superintendent, in the form provided by the Superintendent, an undertaking to be bound by this Section; and
(c) at least one other automobile involved in the accident is insured under a contract evidenced by a motor vehicle liability policy issued by an insurer who is licensed to undertake automobile insurance in the Province or who has filed with the Superintendent, in the form provided by the Superintendent, an undertaking to be bound by this Section.
(3) Where this Section applies, an insured is entitled to recover for the damages to the insured's automobile and its contents and for loss of use from the insured's insurer under the coverage described in subsection (1) of Section 114 as though the insured were a third party.
(4) Recovery under subsection (3) must be based on the degree of fault of the insurer's insured as determined under the fault determination rules prescribed by regulation under clause (a) of subsection (1) of Section 138B.
(b) an insured has no right of action against a person under an agreement, other than a contract of automobile insurance, in respect of damages to the insured's automobile or its contents or for loss of use, except to the extent that the person is at fault or negligent in respect of those damages or that loss; and
(9) In the circumstances prescribed by regulation, a contract belonging to a class prescribed by the regulations for the purpose of subsection (7) must provide that, in the event that a claim is made by the insured under this Section, the insurer shall pay only the amount that the insured would otherwise be entitled to recover, reduced by a sum specified in the contract.
(11) Where a contract contains an agreement referred to in subsection (7) or a provision required by subsection (9), the policy must have "This policy contains a partial payment of recovery clause for property damage" printed or stamped on its face in conspicuous type.
148B Subject to Section 148D, nothing in this Act shall be construed to curtail or abridge the right of any person to commence and maintain an action for damages by reason of any injuries to a person or any property resulting from
(2) Where a person sustains loss or damage by reason of a motor vehicle on a highway, the onus of proof in any civil action that the loss or damage did not entirely or solely arise through the negligence or improper conduct of the owner or the employee or agent of the owner acting in the course of that person's employment or of the driver of the motor vehicle is on that owner or driver.
(b) in the case of an accident between motor vehicles on a highway if the claim is made by the owner or driver of any of the motor vehicles involved in the accident or by a passenger in one of the motor vehicles involved in the accident against the owner or driver of another vehicle.
(b) "lender" means a person who holds a security interest in a motor vehicle through a written security agreement, who under that agreement has lent money to a person in respect of the motor vehicle and who is not in possession of the motor vehicle, or a person to whom the lender has assigned the agreement;
(c) "lessor" means a person who, by agreement, in the ordinary course of the person's business, leases or grants exclusive use of a motor vehicle to another person for a term of more than thirty days or otherwise grants exclusive use of a motor vehicle to another person for a period of more than thirty days, and who is not in possession of the motor vehicle, or a person to whom the lessor has assigned the agreement, but does not include a conditional seller;
(d) "renter" means a person who, by agreement, in the ordinary course of the person's business, rents a motor vehicle to another person for a term of no more than thirty days and who is not in possession of the motor vehicle, or a person to whom the renter has assigned the agreement;
(g) "seller" means a person who holds a security interest in a motor vehicle through a written security agreement, who sells the motor vehicle to another person under a contract in writing when the purchaser has carried out the terms of the contract and who is not in possession of the motor vehicle, or a person to whom the seller has assigned the security agreement or the contract.
(6) Notwithstanding subsections (2) to (5), nothing in this Section relieves any person who is deemed to be the agent or employee of the owner and to be driving the motor vehicle in the course of that person's employment from liability for the loss or damage.
(b) to conditional sellers, lenders, lessors, renters or sellers or motor vehicles, or classes of conditional sellers, lenders, lessors, renters or sellers or motor vehicles, prescribed by regulation.
(b) prescribing conditional sellers, lenders, lessors, renters and sellers and motor vehicles or classes of conditional sellers, lenders, lessors, renters and sellers and motor vehicles for the purpose of clause (b) of subsection (8).
148E An owner of a motor vehicle who requires or knowingly permits a person who is less than eighteen years of age to operate the motor vehicle on a highway and any person in charge of a motor vehicle who provides it to a person who is less than eighteen years of age are jointly and severally responsible with the driver for any injury, damage or loss caused by the fault of the driver in the operation of the motor vehicle, unless the owner of the vehicle satisfies the court that the driver was operating the vehicle without the express or implied consent of the owner.
148F The owner or person in charge of a motor vehicle is not responsible for any damage caused by the fault of the driver of the vehicle if the owner or person in charge of the motor vehicle proves that the vehicle was operated by or in the charge of a person who had stolen the motor vehicle.
(2) The Superintendent shall deliver in writing to the Minister the results of the review, including any recommendations for change that the Superintendent considers appropriate as a result of the review.
(3) In this Act, where no permit and no certificate of registration have been issued for a vehicle or for the purpose of obtaining a certificate of registration for a vehicle, the owner of the vehicle is any person who, alone or jointly with one or more others, has the right to transfer property in the vehicle.
(4) For greater certainty, where a person who is the owner of a vehicle enters into an agreement under which the person transfers an interest in the vehicle to a creditor to secure payment or performance of an obligation, the person transferring the interest rather than the creditor is the owner of the vehicle.
13 This Act, other than Sections 1 to 3 and subsection 7(1), comes into force on such day as the Governor in Council orders and declares by proclamation.
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