Insurance
False information
If an applicant for an insurance contract provides false information about the described automobile or knowingly misrepresents or fails to disclose important facts in the application, their claim will be invalid, and they will lose the right to receive compensation. The same applies if the insured violates the terms of the contract or commits fraud, or if they make a false statement regarding a claim.
Information provided as a defence
Any statements made by the applicant can only be used as a defence by the insurer if they are included in the signed written application or attached to the policy. Statements from a copy of the application can only be used if the insurer proves that the applicant made the statement attributed to them.
Mandatory conditions
Mandatory conditions are part of every insurance contract and must be printed in the policy under the heading "Mandatory Conditions." The insured cannot be bound by any variations, omissions, or additions to these conditions.
The mandatory conditions do not apply to certain types of insurance.
If a motor vehicle liability policy specifically names an excluded driver, the insurer is not liable for any loss or damage that occurs while that excluded driver is driving the insured vehicle.
Compensation
In cases of bodily injury or death caused by the use or operation of an automobile, the amount of damages a plaintiff is entitled to for income loss and loss of earning capacity will be reduced by any payments they have received or were available to them before the trial under any income-continuation benefit plan that does not have a right of subrogation.
In certain situations, the owner, operator, occupants of an automobile, and others involved in an incident are not liable for certain damages related to income loss and loss of earning capacity resulting from bodily injury or death caused by the use or operation of the automobile.
These excluded damages include income loss suffered before the trial of the legal action that exceeds the net income loss determined during that period, as well as loss of earning capacity suffered after the incident and before the trial of the action that exceeds the net loss of earning capacity determined during that period.
This rule applies to all types of legal actions, including those governed by the Fatal Injuries Act and similar legislation.
However, the protection provided by this rule does not apply if the person being defended in the action is supported by an insurer that is not licensed to provide automobile insurance in the province unless the insurer has filed an undertaking to become licensed.
In an action for loss or damage from bodily injury or death caused by the use or operation of an automobile, the calculation of any award against the responsible parties must not use a discount rate lower than the amount prescribed by the Governor in Council through regulation.
In an accident claim, the amount of damages that can be recovered for non-monetary loss of the claimant (such as pain and suffering) due to a minor injury is determined according to the regulations.
Trial
Before the trial, a judge can decide, upon motion and with the consent of the parties or through an order from a pre-trial conference judge, whether the claimant has suffered a minor injury for the purpose of calculating damages.
The judge's determination on the motion is binding on the parties during the trial.
If no motion is made, the judge will determine whether the claimant has suffered a minor injury for the purpose of this section.
The Governor in Council has the power to create regulations that:
Define or categorize minor injuries.
Establish guidelines or best practices for assessing whether an injury is minor or not.
Set limits or amounts for damages related to non-monetary loss for minor injuries.
Determine circumstances where a minor injury is exempt from the application of this section.
Address injuries that consist of a combination of minor injuries and non-minor injuries.
Define circumstances where an injury resulting in a serious impairment is still considered a minor injury.
Establish the burden of proof for minor injuries.
Cover any other matters necessary to effectively implement this section.
Policy coverage
An owner's policy provides insurance coverage to the person named in the policy and any other person who drives the insured's vehicle with their consent. It covers liability for loss or damage arising from the ownership, use, or operation of the vehicle, including bodily injury or death to others and damage to property.
If the owner's policy also includes coverage for a vehicle not owned by the insured, the insurance may be restricted to specific individuals as stated in the policy.
If the named insured in an owner's policy passes away, the policy extends coverage to the deceased insured's spouse or common-law partner residing in the same dwelling at the time of their death. It also covers a newly acquired automobile or a temporary substitute automobile, as defined in the policy, until probate or administration is granted to the deceased insured's personal representative.
A non-owner's policy provides insurance coverage to the person named in the policy and any other person specified in the policy. It covers liability for loss or damage resulting from the use or operation of a vehicle that is not owned by the insured, including bodily injury or death to others and damage to property.
Someone who holds a lien or has legal title to a vehicle as security is not considered the owner of the vehicle for the purposes of insurance coverage.
Insurance coverage under owner's and non-owner's policies applies within Canada and the United States, including travel between ports of those countries.
An unnamed person who is insured under a policy to which Section 114 or 115 applies can recover indemnity in the same way and to the same extent as if they were named in the policy. They are considered a party to the contract and are entitled to the benefits of the policy.
A motor vehicle liability policy must specify the insurer's obligations in the event of an accident involving the insured vehicle, including conducting investigations, negotiating with claimants, settling claims, defending the insured in civil actions related to the accident, paying costs of defended actions, and reimbursing the insured for immediate medical expenses in case of injury.
An insurer is not responsible for any liability imposed by workers' compensation laws on individuals covered by a motor vehicle liability policy.
The insurer is also not liable for any bodily injury or death of an employee of the insured person that occurs while the employee is operating or repairing the vehicle.
Every motor vehicle liability policy provides insurance coverage for at least $500,000 in case of bodily injury, death, or property damage resulting from an accident.
The insurer can choose to specify separate limits for bodily injury and property damage, but each limit must be at least $500,000.
The insurer has the option to increase or decrease the coverage limits for specific named individuals, but the coverage cannot be reduced below the minimum requirement of $500,000.
The insurer can include exclusions and limitations in the insurance contract for loss, damage, or loss of use of the automobile as they deem necessary, except as specified in Section 108(1).
The contract may have a clause stating that the insurer will only pay a portion of the loss or deduct a specified amount from the claim, as long as it doesn't exceed the total insurance amount.
If such a clause is included, it must be clearly indicated on the policy.
When a claim is made, the insurer must adjust the claim amount with the named insured and any other individuals indicated in the contract.
If the insured cannot be located or fails to make a claim, the insurer may adjust and pay the claim to another person indicated in the contract after a certain period of time.
The following conditions apply to direct compensation for property damage:
If an automobile or its contents are damaged due to the use or operation of other automobiles in the province, and certain insurance requirements are met, the insured can recover damages from their insurer.
The degree of fault determines the amount of recovery, based on fault determination rules.
If the insured is not satisfied with the fault determination or proposed settlement, they can take legal action following ordinary rules.
The insured cannot sue other individuals involved in the incident for damages or loss, except to the extent they are at fault or negligent.
The insurer cannot seek indemnification or subrogation from any person for payments made to the insured, except as permitted by regulations.
The insurer can include an agreement in the contract that limits the amount the insured can recover in certain circumstances.
The policy must clearly indicate if it contains a partial payment of recovery clause for property damage.
The does not affect the insured's right to recover for physical damage coverage or apply to damage to contents carried for reward, damage caused by the insured while driving another automobile owned by them, damage to automobiles owned by the same person, or damage sustained before the section came into force.
NS Insurance Act s. 111-113E, 114-116, 119, 121, 125, 133, 136-138