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Chapter 3: Automobile Insurance May 8th, 2012. Quebec (for bodily injury only), B.C., Manitoba, and Saskatchewan have a government-run auto insurance industry for the basic, mandatory coverage that is the minimum required coverageIn these provinces, no policies are issued for this mandatory coverage since everyone has the same basic policy The insurance premium is paid at the same time licenses are renewed Legal Aspects: -All three levels of government are involved in regulating the use of automobiles in Canada -The federal government, through the Insurance Act of Canada, has given provinces and territories legislative power to manage their own automobile insurance industries -The federal Insurance Act was created to control and monitor insurance companies, outline the mandatory automobile insurance coverage that an individual is required to hold -Government Regulation of Insurance: Federal Level Provincial Level Municipal Level Criminal Code of Canadahas several sections covering various aspects, such as impaired driving, dangerous operation of a vehicle, failure to stop at the scene of an accident, criminally negligent operation of a vehicle, and theft.Convictions for violations affect premiums and coverage.Highway Traffic Actsset out laws relating to speed limits, age restrictions on driving, testing requirements, different license classes (M1, G, L, etc.), seatbelt requirements, and defines who has the right of way. Convictions for violations affect premiums and coverage. Creates and set laws for parking and crosswalks. Convictions for violations do not affect premiums and coverage. However, municipal governments can impound vehicles and give finds that must be paid to renew a driving license. Responsible for the Insurance Act.Set rate guidelines and coverage requirements. Types of Coverage: Covering only auto policy and there are similar personal coverage for motorcycles, motor homes, trailers and camper units, off-road vehicles, motorized snow vehicles, and historic vehicles. -Compulsory Coverage: all provinces and territories require all drivers to have auto insurance and to have the following coverage: Third-Party Liability: provides coverage up to $200,000 ($500,000 for Nova Scotia, $50,000 in Quebec) to pay other people to whom the insured can be legally liable for bodily injury and/or damage to property of others. Accident Benefits: provide compensation, regardless of fault, for insured persons (the driver, the driver’s passengers, and pedestrians) injured or killed in auto accident for all provinces and territories except Newfoundland and Labrador, where Accident Benefits are provided through the provincial health care plan. Uninsured Automobile: provides the same amount of coverage as third-party liability if a person is in an accident with an uninsuredor unidentified (hit-and-run)auto to compensate the victim for the amount he or she would be entitled to receive from an uninsured or unidentified
motorist. If the victim is not covered by an insurance policy, several jurisdictions have a Motor