February 17, 2011 by Canadian Underwriter
The New Brunswick Insurance Board is asking all insurers writing commercial automobile insurance policies in New Brunswick to review their book of business for any possible instances in which deductibles may have been offered on Direct Compensation-Property Damage (DCPD) coverage to commercial customers, which is not authorized by regulation.
Insurers have been asked to report any such occurrences to the board and also directly to the province’s superintendent of insurance.
“The board has recently been made aware that there may be circumstances where automobile insurers have offered a deductible on DCPD coverage to their commercial customers,” the board wrote in a 2011 bulletin, posted online.
“Subsection 254.1(7) of the Insurance Act allows DCPD deductibles to be offered only on classes prescribed by regulation. To date, no regulations have been made by the Lieutenant-Governor in Council.
“Therefore, no deductibles are currently permitted to be offered on DCPD coverage for automobile insurance on any class of vehicle.”
Until such time as regulations are made and enacted, the board has not and will not approve differentials for DCPD deductibles, the board further noted. “It is incumbent