In our
May 20, 2014 client update, we reported on significant changes
affecting automobile insurance in Prince Edward Island, including
changes to no-fault benefits available under section B and changes
to the damages cap for minor personal injury. Most of those changes
went into effect on October 1, 2014. The final change provides for
direct compensation for property damage ("DCPD"), and was
recently proclaimed to come into force on October 1,
2015. The amendments to the PEI Insurance
Act setting out the DCPD regime can be viewed here.
DCPD entitles an insured to obtain payment directly from his or
her own insurer for damage to an automobile. Recovery is based on
the insured's degree of fault, as established under a set of
fault determination rules ("Rules") prescribed by
regulation. The Rules provide specific fault determinations for
described accident scenarios, and prescribe that:
