Highlights of Changes to the Automobile Insurance Act Effective, January 1, 2020

The Government of Newfoundland and Labrador has recently made changes to the Automobile Insurance Act, RSNL 1990 c A-22, as amended, which came into effect on January 1, 2020. Some of these changes are of particular importance for those who may suffer injuries if involved in a motor vehicle collision.

Perhaps the most critically important change for injured persons appears in section 25.1(1), which indicates that injured persons will be required to serve written notice of their intention to commence an action within 120 days of the accident. While Plaintiffs would still have up to two years to commence an action for injuries sustained in a motor vehicle accident pursuant to s. 5(a) of the Limitations Act, SNL 1995, c L-16.1, this provision of the Act means that those who are injured in a motor vehicle accident should seek legal advice without delay, and certainly within 120 days of the accident to ensure their legal rights are preserved.

Also of note for personal injury claimants is that the deductible for pain and suffering awards has doubled from $2,500 to $5,000. This means that Plaintiffs will now automatically have $5,000 deducted from any award they may receive. If you are involved in a claim for personal injury, your lawyer will be able to advise you how this impacts the compensation you can expect to receive.

Other highlights of the new legislation include that insurance companies will be required to report cancellation of any auto insurance policy to the Registrar of Motor Vehicles, and will also be required to provide an insurance discount for those with winter tires. Insurers will also be permitted to offer telematics technology to their insureds, which are devices that collect information about where, how and when vehicles are driven.

When it comes to dealing with property damage resultant from a motor vehicle collision (which is typically dealt with separately from bodily injury claims) motorists will deal with their own insurance company, even when deemed not at fault.
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Whether you have been injured in a motor vehicle collision or have questions regarding the changes to the legislation, the lawyers at Budden & Associates would be pleased to consult with you regarding your individual needs. 

​-Allison Conway