As people gather July 1, 2017 to celebrate Canada’s 150th birthday, thousands of “road-building machine” (RBM) vehicles in Ontario may be required to be registered and insured for the first time as motorized vehicles rather than as road-building or contractors equipment. This will, undoubtedly, have an impact on insurers’ bottom lines and open the door to more loss transfer disputes.
Ontario’s Highway Traffic Act (HTA) governs the province’s public roads and the vehicles/drivers that use them. Among other things, the HTA regulates vehicle and driver licensing and prescribes various rules of the road.
Daniel Strigberger, Partner, Samis+Company
For insurance purposes, the HTA operates in conjunction with Ontario’s Insurance Act and the Compulsory Automobile Insurance Act (CAIA) to ensure that all required vehicles operating on public roads are insured.
Under the Highway Traffic Act, “motor vehicle” includes an automobile, a motorcycle, a motor-assisted bicycle unless otherwise indicated in this Act, and any other vehicle propelled or driven otherwise than by muscular power, but does not include a street car or other motor vehicle running only upon rails, a power-assisted bicycle, a motorized snow vehicle, a traction engine, a farm tractor, a self-propelled implement of husbandry or a road-building machine.
Ken Parsons, Consultant, Everest Canada
Read the full article in the Digital Edition of the June 2017 Canadian Underwriter.
Click here to subscribe to Canadian Underwriter, available free to qualified industry professionals.
—Daniel Strigberger, Partner, Samis+Company; and Ken Parsons, Consultant, Everest Canada