O. Reg. 277/03: STATUTORY CONDITIONS - AUTOMOBILE INSURANCE

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ontario regulation 277/03

made under the

Insurance Act

Made: June 25, 2003
Filed: July 2, 2003
Printed in The Ontario Gazette: July 19, 2003

Amending O. Reg. 777/93

(Statutory Conditions — Automobile Insurance)

1. Section 1 of Ontario Regulation 777/93 is amended by adding the following subsection:

(3) The following provisions of the Schedule as they read on the day this subsection comes into force apply to every contract of automobile insurance that is in effect on that day or that comes into effect after that day:

1. Subconditions (6), (6.1) and (6.2) of statutory condition 6.

2. Statutory condition 7.

3. Subconditions (1) and (2.1) of statutory condition 9.

4. Statutory condition 10.1.

2. (1) Subcondition (6) of statutory condition 6 in the Schedule to the Regulation is revoked and the following substituted:

Repairing, rebuilding or replacing property damaged or lost

(6) The insurer may repair, rebuild or replace the property that is damaged or lost, instead of making the payment referred to in statutory condition 9, if the insurer gives written notice of its intention to do so within seven days after receipt of the proof of loss.

Time for repairs

(6.1) The insurer shall carry out the repair, rebuilding or replacement referred to in subcondition (6),

(a) within a reasonable period of time after giving the notice required under subcondition (6), if an appraisal referred to in subcondition (2.1) of statutory condition 9 is not carried out in respect of the claim; or

(b) within a reasonable period of time after the insurer receives the appraisers’ determination of the matters in disagreement, if an appraisal referred to in subcondition (2.1) of statutory condition 9 is carried out in respect of the claim.

New or aftermarket parts

(6.2) For the purposes of subcondition (6), the insurer may repair, rebuild or replace the property with new parts provided by the original equipment manufacturer or with non-original or rebuilt parts of like kind and quality to the property that was damaged or lost.

(2) Statutory condition 7 in the Schedule to the Regulation is amended by striking out “statutory conditions 5 and 6” and substituting “subcondition (1) of statutory condition 5 and subcondition (1) of statutory condition 6”.

(3) Subcondition (1) of statutory condition 9 in the Schedule to the Regulation is revoked and the following substituted:

Time and manner of payment of insurance money

(1) If the insurer has not chosen to repair, rebuild or replace the property that is damaged or lost, the insurer shall pay the insurance money for which it is liable under the contract,

(a) within 60 days after the insurer receives the proof of loss, if no appraisal referred to in subcondition (2.1) is carried out in respect of the claim; or

(b) within 15 days after the insurer receives the appraisers’ determination of the matters in disagreement, if an appraisal referred to in subcondition (2.1) is carried out in respect of the claim.

(4) Statutory condition 9 in the Schedule to the Regulation is amended by adding the following subcondition:

Resolution of disagreement by appraisal under s. 128 of the Act

(2.1) Section 128 of the Act applies to this contract if,

(a) the insurer has received a proof of loss from the insured in respect of property that is lost or damaged;

(b) the insured and the insurer disagree on,

(i) the nature and extent of repairs, rebuilding and replacements required or their adequacy, or

(ii) the amount payable in respect of the loss or damage; and

(c) either the insured or the insurer requests in writing that an appraisal under section 128 of the Act be carried out and the other of them agrees.

(5) The Schedule to the Regulation is amended by adding the following statutory condition:

Deductible amounts

10.1 (1) Despite anything in this contract,

(a) the insurer shall be liable only for amounts in excess of the applicable deductible amount, if any, mentioned in this contract; and

(b) any provision in this contract relating to an obligation of the insurer to pay an amount or to repair, rebuild or replace property that is damaged or lost shall be satisfied by paying the amount determined by deducting any applicable deductible amount from,

(i) the amount the insured would otherwise be entitled to recover, or

(ii) the cost of repairing, rebuilding or replacing the property.

Deemed deductible amount

(2) For the purposes of subcondition (1), an amount that an insurer is not liable to pay by reason of subsection 261 (1) or (1.1) or 263 (5.1) or (5.2.1) of the Insurance Act shall be deemed to be a deductible amount under this contract.

3. This Regulation comes into force on the later of the day it is filed and October 1, 2003.

 

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