BILL NO. 86

(as introduced)

3rd Session, 61st General Assembly
Nova Scotia
60 Elizabeth II, 2011



Government Bill



Fair Automobile Insurance (2011) Act



The Honourable Graham Steele
Minister responsible for the Insurance Act



First Reading: November 9, 2011

(Explanatory Notes)

Second Reading: November 17, 2011

Third Reading: December 8, 2011 (LINK TO BILL AS PASSED)

[home] [bills] 2011 Bills

Explanatory Notes

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.

Clause 8
(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.

[home] [bills] 2011 Bills

An Act to Amend Chapter 231
of the Revised Statutes, 1989,
the Insurance Act

Be it enacted by the Governor and Assembly as follows:

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:

(2) Subsection 4(2) of Chapter 231 is amended by striking out "the" before "Deputy" in the second line and substituting "a".

4 The heading immediately after Section 107 of Chapter 231 is amended by adding "AND THIS ACT" immediately after "ACT" in the second line.

5 Chapter 231 is further amended by adding immediately after Section 107A the following Section:

6 Chapter 231 is further amended by adding immediately after Section 138 the following heading and Sections:

Direct Compensation for Property Damage

7 (1) Subsection 148(1) of Chapter 231 is amended by

(a) striking out "(k)" in the third line and substituting "(j)"; and

(b) adding "motor" immediately after "valid" in the eighth line.

(2) Section 148 of Chapter 231 is further amended by adding immediately after subsection (3) the following subsections:

8 Chapter 231 is further amended by adding immediately after Section 148 the following Sections:

9 Chapter 231 is further amended by adding immediately after Section 159B the following Section:

10 Clause 2(ak) of Chapter 293 of the Revised Statutes, 1989, the Motor Vehicle Act, is repealed.

11 Chapter 293 is further amended by adding immediately after Section 2 the following Section:

12 Sections 62, 248 to 255 and 257 of Chapter 293 are repealed.

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.

[home] [bills] 2011 Bills


This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 2011 Crown in right of Nova Scotia. Created November 9, 2011. Send comments to legc.office@gov.ns.ca.