Commercial auto lessors and their financial subsidiaries can
breathe easy. Bill 107, Getting Ontario Moving Act,
2019 (the "Bill"),
which extends the $1,000,000 liability cap to auto lessors where
leased vehicles are used for ridesharing services, received Royal
Assent on June 6, 2019.
The Bill includes amendments to the Insurance Act
specifically targeting liability restrictions for auto lessors.
Under Section 267.12 of the Insurance Act, lessors of
motor vehicles are currently liable to a maximum of $1,000,000 for
any loss or damage from personal injury resulting from the use of
one of their leased vehicles.1 However, prior to
the amendments, the cap did not apply if the leased vehicle was
used for taxi or "ride for hire"
purposes.2 Commercial auto lessors were not
protected and could be vicariously liable for exorbitant costs in
accidents causing personal injury – even where they had no
control or possession over the leased vehicle.
