Canadian Underwriter

Road Block

Ontario brokers and insurers need to know about upcoming changes to the definition of road-building machines. Certain machines will no longer be included in package, inland marine or other coverage forms, meaning they must now be registered/licensed and insured under an Ontario auto policy. Should an injury occur involving a machine that is not so insured, losses could exceed limits.

June 29, 2017   by Daniel Strigberger, Partner, Samis+Company; and Ken Parsons, Consultant, Everest Canada

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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.

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—Daniel Strigberger, Partner, Samis+Company; and Ken Parsons, Consultant, Everest Canada