December 3, 2010 by Canadian Underwriter
Alberta’s Superintendent of Insurance announced a series of legislative changes extending the liability cap of $1 million that exists for rental and leasing companies to people selling or financing vehicles through formal arrangements.
The legislative changes come into force on March 1, 2011. They will:
The legislative changes come under sections 12, 13 and 14 of the Traffic Safety Amendment Act, 2007, section 9 of the Traffic Safety Amendment Act, 2009, the Commercial Vehicle Certificate and Insurance Amendment Regulation and the Miscellaneous Provisions Amendment Regulation.
Alberta capped the liability limit of vehicle leasing companies when their vehicles are operate by lessees at $1 million in 2007. Two years later, the cap was extended to car rental companies. With the legislative change, the cap will also apply to persons selling or financing vehicles through formal arrangements and retaining title to the vehicle until they are fully paid for the vehicle, a bulletin from the Superintendent of Insurance says.