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a) Discuss how legislation enacted by each of the 3 levels of government in Canada affects automobile insurance.
b) Identify the statutes that relate to automobile insurance in Manitoba and outline the main objective of each.
a) Federal Legislation: deals with matters that affect Canada as a whole such as Criminal Law, immigration, extradition etc.
Provincial Legislation: sets out the rules of the road which include speed limits, rules of respecting traffic lights and stop signs, who has the right of way in various situations.
Municipal Government: makes bylaws dealing with local matters such as zoning, smoking, construction permits, animal control, crosswalks
b) 1)The Insurance Companies Act: deals with federal licensing and supervision of insurance companies and solvency standards for insurers.
- 2) The Manitoba Public Insurance Corporation Act:
established board of directors and made MPI a crown corporation. - - Provides for the operation of the Corporation and empowers to do business in a variety of insurance types.
- 3) The Highway Traffic Act:
states the rules and regulations to which automobiles must adhere to while traveling on the roads, highways, operating 4 way stop signs, lights etc. - 4) The Limitation Act:
Outlines the time limit to which an insured's claim can be made along with the time limit to which an insurer can deny any claim- 5) The Insurance Act:
governs the insurance industry as a whole by regulating insurers, brokers, agents, adjusters and certain policy forms.
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Explain each of the following legal concepts:
a) Negligence
b) Onus of Proof
c) Absolute liability
d) Subrogation
a) Negligence: doing something which a prudent and reasonable person would not do
Ex: David rear end's Marie because David was on his cell phone. David would be 100% at-fault and found to be negligent as he did not use proper spacing along with being on his cell phone.
b) Onus of Proof: burden of proof.
- When a person sues another person the law puts the onus of proof on the plaintiff to prove that the defendant was negligent. In return the defendant has the opportunity to demonstrate that they were not negligent.
- In some provinces involving an automobile collision with pedestrian the onus of proof is on the Automobile driver to prove they were not negligent in hitting the pedestrian.
c) Absolute Liability: The insurer is obligated to pay out the third party claim even though the insured has breached a policy condition.
- Insurer has the right to recover from its own insured any amount paid by reason of absolute liability
d) Subrogation: The insurer assumes the position of the insured with the legal rights of recovery from the at-fault party.
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a) State what is covered by Third Party Liability coverage.
b) Summarize who is considered an insured under basic Autopac Third Party Liability coverage.
c) A vehicle owner in Manitoba has basic and optional Autopac Third Party Liability with a limit $1 million. In an action defending the insured, defence costs are $250,000. If $1 million is awarded to the third party, what would be the total amount MPI would pay? Explain your answer.
a) Automobile, Third Party and Liability
b) The insured under basic Autopac would be a vehicle owner who is driving their own vehicle or the person driving the vehicle's owner's vehicle with their permission. In all cases the driver would be required to have a valid driver's licence.
c) MPI would pay out $1,250,000. Any legal costs would not go against the insured's third party amount
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a) Who is insured under Autopac Accident Benefits?
b) Outline the coverages available under Autopac Accident Benefits, including who is insured under each coverage.
a) All Manitobans are covered
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1) Income Replacement Indemnity, Income Retirement Benefit, Indemnity for minors, Indemnity for students
2) Death Benefits
3) Claims for compensation
4) Indexation
5) Rehabilitation
6) Compensation for permanent impairment
7) Reimbursement for expenses
8) How indemnities are to be paid
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You were injured by an uninsured motorist from a U.S. state having no unsatisfied judgment fund. Your vehicle is a total loss and your injuries that will prevent you from working for at least two months. The accident occurred on a Manitoba highway and was completely the other motorist's fault.
You have basic Autopac including Third Party Liability coverage, Accident Benefits, and all perils coverage.
a) How would your Autopac insurance cover the damage to your vehicle?
b) How would Autopac cover losses caused by the bodily injuries you have suffered?
c) Can you sue the uninsured motorist who caused the accident for amounts above the maximum limit payable by MPI? Explain your answer.
d) What coverage would be available to you if you were a pedestrian who was injured by the uninsured motorist and you do not own a vehicle?
a) The driver's policy would respond to cover the physical damage of the vehicle.
b) All Manitobans are covered in by PIPP which would respond to the injuries sustained from the vehicle accident.
c) No the insured could not sue but the insured could complete an Uninsured Motorist Application form and if the Uninsured Motorist does not respond within 30 days disputing accusation then the insured would have the right to settle. At which point MPI then has a right of subrogation against the Uninsured Motorist.
d) PIPP would cover the pedestrian.
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