Acts and Regulations

I-12 - Insurance Act

Section 254.1
Disposition versions

Full text
Direct compensation — property damage
254.1(1)This section applies if
(a) an automobile or its contents, or both, suffers damage arising directly or indirectly from the use or operation in New Brunswick of one or more other automobiles,
(b) the automobile that suffers the damage or in respect of which the contents suffer damage is insured under a contract evidenced by a motor vehicle liability policy issued by an insurer that is licensed to undertake automobile insurance in New Brunswick or that has filed with the Superintendent, in the form provided by the Superintendent, an undertaking to be bound by this section, and
(c) at least one other automobile involved in the accident is insured under a contract evidenced by a motor vehicle liability policy issued by an insurer that is licensed to undertake automobile insurance in New Brunswick or that has filed with the Superintendent, in the form provided by the Superintendent, an undertaking to be bound by this section.
254.1(2)This section applies, with necessary modifications, in respect of an automobile the owner, operator or lessee of which is exempt from the requirement to be insured under the Motor Vehicle Act, if the organization that is financially responsible for the damages resulting from the accident involving the automobile files with the Superintendent an undertaking to be bound by this section.
254.1(3)If this section applies, an insured is entitled to recover for the damages to the insured’s automobile and its contents and for loss of use from the insured’s insurer under the coverage described in subsection 232(1) as though the insured were a third party.
254.1(4)Recovery under subsection (3) shall be based on the degree of fault of the insurer’s insured as determined under the fault determination rules prescribed by regulation under paragraph 254.2(a).
254.1(5)An insured may bring an action against the insurer if the insured is not satisfied that the degree of fault established under the fault determination rules accurately reflects the actual degree of fault or the insured is not satisfied with a proposed settlement and the matters in issue shall be determined in accordance with the ordinary rules of law.
254.1(6)If this section applies,
(a) an insured has no right of action against any person involved in the incident other than the insured’s insurer for damages to the insured’s automobile or its contents or for loss of use,
(b) an insured has no right of action against a person under an agreement, other than a contract of automobile insurance, in respect of damages to the insured’s automobile or its contents or loss of use, except to the extent that the person is at fault or negligent in respect of those damages or that loss, and
(c) an insurer, except as permitted by regulation, has no right of indemnification from or subrogation against any person for payments made to its insured under this section.
254.1(7)Nothing in this Part precludes an insurer, in a contract belonging to a class prescribed by regulation, from agreeing with an insured that, in the event that a claim is made by the insured under this section, the insurer shall pay only
(a) an agreed portion of the amount that the insured would otherwise be entitled to recover, or
(b) the amount that the insured would otherwise be entitled to recover, reduced by a sum specified in the agreement.
254.1(8)Subsection (7) does not apply unless, before the insurer enters into the contract referred to in that subsection, the insurer offers to enter into another contract with the prospective insured that does not contain the agreement referred to in that subsection but is identical to the contract referred to in subsection (7) in all other respects except for the amount of the premium.
254.1(9)In the circumstances prescribed by regulation, a contract belonging to a class prescribed for the purpose of subsection (7) shall provide that, in the event that a claim is made by the insured under this section, the insurer shall pay only the amount that the insured would otherwise be entitled to recover, reduced by a sum specified in the contract.
254.1(10)Subsection (8) does not apply to a contract that contains a provision required by subsection (9).
254.1(11)If a contract contains an agreement referred to in subsection (7) or a provision required by subsection (9), the policy shall have printed or stamped on its face in conspicuous type the words “This policy contains a partial payment of recovery clause for property damage”.
254.1(12)This section does not affect an insured’s right to recover in respect of any physical damage cover in respect of the insured automobile.
254.1(13)This section does not apply to damage to those contents of an automobile that are being carried for reward.
254.1(14)This section does not apply if both automobiles are owned by the same person.
254.1(15)This section does not apply to damage to an automobile owned by the insured or to its contents if the damage is caused by the insured while driving another automobile.
254.1(16)This section does not apply if the damage occurred before the coming into force of this section.
2004, c.36, s.13
Direct compensation — property damage
254.1(1)This section applies if
(a) an automobile or its contents, or both, suffers damage arising directly or indirectly from the use or operation in New Brunswick of one or more other automobiles,
(b) the automobile that suffers the damage or in respect of which the contents suffer damage is insured under a contract evidenced by a motor vehicle liability policy issued by an insurer that is licensed to undertake automobile insurance in New Brunswick or that has filed with the Superintendent, in the form provided by the Superintendent, an undertaking to be bound by this section, and
(c) at least one other automobile involved in the accident is insured under a contract evidenced by a motor vehicle liability policy issued by an insurer that is licensed to undertake automobile insurance in New Brunswick or that has filed with the Superintendent, in the form provided by the Superintendent, an undertaking to be bound by this section.
254.1(2)This section applies, with necessary modifications, in respect of an automobile the owner, operator or lessee of which is exempt from the requirement to be insured under the Motor Vehicle Act, if the organization that is financially responsible for the damages resulting from the accident involving the automobile files with the Superintendent an undertaking to be bound by this section.
254.1(3)If this section applies, an insured is entitled to recover for the damages to the insured’s automobile and its contents and for loss of use from the insured’s insurer under the coverage described in subsection 232(1) as though the insured were a third party.
254.1(4)Recovery under subsection (3) shall be based on the degree of fault of the insurer’s insured as determined under the fault determination rules prescribed by regulation under paragraph 254.2(a).
254.1(5)An insured may bring an action against the insurer if the insured is not satisfied that the degree of fault established under the fault determination rules accurately reflects the actual degree of fault or the insured is not satisfied with a proposed settlement and the matters in issue shall be determined in accordance with the ordinary rules of law.
254.1(6)If this section applies,
(a) an insured has no right of action against any person involved in the incident other than the insured’s insurer for damages to the insured’s automobile or its contents or for loss of use,
(b) an insured has no right of action against a person under an agreement, other than a contract of automobile insurance, in respect of damages to the insured’s automobile or its contents or loss of use, except to the extent that the person is at fault or negligent in respect of those damages or that loss, and
(c) an insurer, except as permitted by regulation, has no right of indemnification from or subrogation against any person for payments made to its insured under this section.
254.1(7)Nothing in this Part precludes an insurer, in a contract belonging to a class prescribed by regulation, from agreeing with an insured that, in the event that a claim is made by the insured under this section, the insurer shall pay only
(a) an agreed portion of the amount that the insured would otherwise be entitled to recover, or
(b) the amount that the insured would otherwise be entitled to recover, reduced by a sum specified in the agreement.
254.1(8)Subsection (7) does not apply unless, before the insurer enters into the contract referred to in that subsection, the insurer offers to enter into another contract with the prospective insured that does not contain the agreement referred to in that subsection but is identical to the contract referred to in subsection (7) in all other respects except for the amount of the premium.
254.1(9)In the circumstances prescribed by regulation, a contract belonging to a class prescribed for the purpose of subsection (7) shall provide that, in the event that a claim is made by the insured under this section, the insurer shall pay only the amount that the insured would otherwise be entitled to recover, reduced by a sum specified in the contract.
254.1(10)Subsection (8) does not apply to a contract that contains a provision required by subsection (9).
254.1(11)If a contract contains an agreement referred to in subsection (7) or a provision required by subsection (9), the policy shall have printed or stamped on its face in conspicuous type the words “This policy contains a partial payment of recovery clause for property damage”.
254.1(12)This section does not affect an insured’s right to recover in respect of any physical damage cover in respect of the insured automobile.
254.1(13)This section does not apply to damage to those contents of an automobile that are being carried for reward.
254.1(14)This section does not apply if both automobiles are owned by the same person.
254.1(15)This section does not apply to damage to an automobile owned by the insured or to its contents if the damage is caused by the insured while driving another automobile.
254.1(16)This section does not apply if the damage occurred before the coming into force of this section.
2004, c.36, s.13