The Ontario Ministry of Finance has published for review, several amendments to the province’s Insurance Act which raise auto damage thresholds and also give insurers the ability to cancel certain contracts while only providing notification by electronic means.
Currently insurers are only permitted to terminate the insurance contracts in question by delivering notice by registered mail, personal delivery or prepaid courier.
The damage threshold proposal follows amendments to the Highway Traffic Act in March 2024 which raise the threshold for mandatory reporting of property damage in collisions from $2,000 to $5,000, effective January 1, 2025.
“The Ministry of Finance is seeking feedback on amendments to Ontario Regulation 664 (Automobile Insurance) under the Insurance Act, to amend the minor accident property damage threshold to prescribe that the cost of damage to each automobile, including any associated property damage, did not exceed $5,000. This threshold is currently $2,000.”
Repair costs
They say the changes were made to better align the highway Act with current vehicle replacement and repair costs. The Insurance Act is being changed in harmonization, they add.
A second proposed amendment to the Insurance Act would give insurers the ability to send a notice of termination of an insurance contract by electronic means if the insured consents to such delivery, in cases where they are terminating accident and sickness insurance contracts and property and casualty insurance contracts. The change follows January 2022 amendments which permit insurers to do the same when terminating auto insurance contracts.
The proposed amendments also discuss the language the Act uses when discussing the use of couriers, and adds an additional day to notice periods for certain contracts.
Comments on the proposed amendments are due to the Ministry of Finance by October 7, 2024.
