Toronto, ON (Nov. 15, 2018) – Today, during its annual Regulatory Affairs Symposium, Insurance Bureau of Canada (IBC) released a position paper, Auto Insurance for Automated Vehicles: Preparing for the Future of Mobility.
The recommendations in the paper were developed over the past two years by auto insurance experts, who in turn, received input from a panel of legal advisors. IBC would like to thank the insurer representatives who worked on developing the recommendations in this paper, as well as the panel of legal experts who advised them.
The paper contains three recommendations that update both provincial insurance laws and federal vehicle safety standards:
- Establish a single insurance policy that covers driver negligence and automated technology malfunctions to facilitate liability claims;
- Establish a legislated data-sharing arrangement between vehicle manufacturers and vehicle owners and/or insurers to help determine the cause of a collision; and
- Update the federal vehicle safety standards to address new technology and cyber security standards.
“Automated vehicles are coming to Canada’s roads, and the laws that govern insurance and vehicle safety need to be updated to reflect this reality,” said Don Forgeron, President and CEO, IBC. “We need changes to the provincial insurance laws across the country to ensure that collision victims continue to be compensated in a timely manner.”
Each province has a prescribed auto insurance policy and supporting laws that are not yet designed for automated vehicles. Currently, they are built on the notion that human error is the primary cause of collisions. As humans cede control of driving to automated technology, there will likely be fewer collisions but the collisions that do occur will be caused increasingly by product malfunction. The current laws will create uncertainty and confusion for some people injured in collisions that involve automated vehicles, possibly delaying treatment for their injuries and claims payouts.
Several major auto manufacturers expect to have automated vehicles available for purchase in the early 2020s. IBC is asking governments across the country to update relevant laws, to ensure we are ready when automated vehicles hit the roads.
Read the paper: Auto Insurance for Automated Vehicles: Preparing for the Future of Mobility
For more information, see The Future of Insurance: Automated Vehicles.
About Insurance Bureau of Canada
Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.
P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 126,000 Canadians, pays $9 billion in taxes and has a total premium base of $54.7 billion.
For media releases and more information, visit IBC’s Media Centre at www.ibc.ca.
SOURCE: Insurance Bureau of Canada (IBC)
Tags: Autonomous Vehicles, Insurance Bureau of Canada (IBC)
