Direct Compensation for Property Damage Regulation

(no amdt) alberta regulation 132/2021 Insurance Act DIRECT COMPENSATION FOR PROPERTY DAMAGE REGULATION Table of Contents 1 Interpretation Fault Determination 2 Determination of degree of fault 3 More than one provision applies 4 Ordinary rules of law 5 Automobiles travelling in same direction and same lane 6 Automobiles travelling in same direction and adjacent lanes 7 Automobiles travelling in same direction and adjacent lanes — overtaking or passing 8 Automobiles travelling in opposite directions 9 Automobile entering highway from parking place or private road or driveway 10 Automobile entering controlled highway 11 Chain reaction accidents 12 Pile-ups 13 Intersections without traffic signs or traffic control signals 14 Intersections with traffic signs 15 Intersections with traffic control signals 16 Parking lots 17 Parked automobiles 18 Driver fails to obey sign or direction 19 Backing up or making U-turns 20 Open doors 21 Driving offences Voluntary Payments, Prescribed Classes of Contracts and Permitted Indemnification 22 Voluntary payment 23 Permitted indemnification — selling, repairing, etc. 24 Permitted indemnification — towing 25 Permitted indemnification — loss of or damage to contents 26 Prescribed classes of contracts Expiry and Coming into Force 27 Expiry 28 Coming into force Interpretation 1 (1) In this Regulation, (a) “accident” means an accident arising from the use or operation of an automobile and includes (i) an accident between 2 or more automobiles or parts of automobiles being detached without the involvement of the insured, and (ii) an accident between an automobile and the load of another automobile; (b) “centre line” means, with respect to a highway, one or more of the following: (i) a single or double solid or broken line marked in the centre of the roadway; (ii) with respect to a roadway without a marked line, (A) subject to paragraph (B), the centre of the roadway measured from the curbs or, in the absence of curbs, from the edges of the roadway, or (B) where the edge or edges of the roadway are obstructed by parked automobiles, snowbanks or other objects, and 2‑way traffic is possible without difficulty, the centre of the unobstructed portion of the roadway; (iii) if the highway has a greater number of lanes in one direction than in the opposite direction, the line marked in the roadway dividing the lanes for traffic travelling in opposite directions; (c) “chain reaction accident” means a series of 2 or more successive accidents among automobiles travelling in the same direction in the same lane, one behind the other; (d) “controlled highway” means a controlled highway as defined in the Highways Development and Protection Act ; (e) “feeder lane” means a road in a parking lot other than a thoroughfare; (f) “highway” means a highway as defined in the Traffic Safety Act ; (g) “intersection” means the area that lies between the lateral boundary lines of 2 or more roadways, or 2 or more lanes in a parking lot, that join one another at an angle, and lines drawn at right angles across each of the roadways, or the lanes in the parking lot, from the points where the lateral boundary lines intersect; (h) “parking place” means (i) an area adjacent to the curb or edge of a roadway where parking is permitted, or (ii) a parking lot; (i) “peace officer” means a peace officer as defined in the Peace Officer Act ; (j) “pile-up” means a series of 2 or more successive accidents among automobiles travelling in the same direction in adjacent lanes; (k) “private road or driveway” means a road or driveway that is not open to the use of the public for the purposes of vehicular traffic; (l) “roadway” means that part of a highway ordinarily used for vehicular traffic and does not include the shoulder unless the shoulder is paved; (m) “thoroughfare” means a main road used for passage into, through or out of a parking lot; (n) “traffic control signal” means a manually, electrically or mechanically operated device by which traffic is alternately directed to stop and proceed; (o) “traffic sign” means any warning signposts, signs, lines, marks or other devices placed, marked or erected for the purpose of regulating, warning or guiding traffic, but does not include a traffic control signal; (p) “urban area” means an urban area as defined in the Traffic Safety Act . (2) References to automobile A, automobile B and automobile C in this Regulation are for ease of reference and have no meaning other than as labels applied to distinguish between the automobiles involved in an accident. (3) The figures in this Regulation are illustrative only, do not have the force of law and are not an exhaustive depiction of every type of accident to which this Regulation applies. Fault Determination Determination of degree of fault 2 (1) Subject to sections 4 and 21, an insurer shall determine the degree of fault of the insured for the loss of use or damage described in section 585.1(3) of the Act in accordance with this Regulation. (2) The degree to which an insured is at fault must be determined without reference to (a) the circumstances in which the accident occurs, including weather conditions, visibility or the actions of pedestrians, and (b) the location or locations of any point of contact between the insured’s automobile or its load and any other automobile or the load of that automobile involved in the accident. More than one provision applies 3 (1) Where more than one of sections 5 to 20 apply in respect of an insured, fault must be determined in accordance with the provision that attributes the least degree of fault to the insured. (2) Notwithstanding subsection (1), where 2 provisions of this Regulation apply to an accident involving 2 automobiles and an insured would be 100% at fault under one provision and not at fault under the other provision, the insured is 50% at fault for the accident. Ordinary rules of law 4 The degree to which an insured is at fault for an accident must be determined in accordance with the ordinary rules of law, rather than in accordance with this Regulation, where (a) the accident is of a type to which this Regulation does not apply, or (b) there is insufficient information with respect to the accident to determine the degree to which the insured is at fault. Automobiles travelling in same direction and same lane 5 (1) This section applies to an accident in which automobile A is struck from the rear by automobile B while both automobiles are travelling in the same direction and in the same lane. (2) Where the accident occurs when automobile A is stopped or is in forward motion, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. Figure 1: section 5(2) (3) Where the accident occurs when automobile A is turning, to the right or to the left in order to enter a side road or private road or driveway, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. Figure 2: section 5(3) (4) Where the accident occurs when automobile A is entering a parking place on the right or left side of a highway in forward motion, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. Figure 3: section 5(4) Automobiles travelling in same direction and adjacent lanes 6 (1) This section applies to an accident in which automobile A and automobile B collide while both automobiles are travelling on a highway in the same direction and in adjacent lanes and neither automobile is overtaking or passing the other. (2) Where neither automobile A nor automobile B are changing lanes when the accident occurs and both automobiles are on or over the centre line when the accident occurs, the driver of each automobile is 50% at fault for the accident. Figure 4: section 6(2) (3) Where the location on the roadway of automobile A and automobile B when the accident occurred cannot be determined, the driver of each automobile is 50% at fault for the accident. (4) Where automobile B is changing lanes when the accident occurs, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. Figure 5: section 6(4) Automobiles travelling in same direction and adjacent lanes — overtaking or passing 7 (1) This section applies to an accident in which automobile A and automobile B collide while travelling on a highway in adjacent lanes and automobile B is overtaking or passing automobile A. (2) Where the accident occurs when automobile A is turning left at an intersection and automobile B is overtaking or passing automobile A, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. Figure 6: section 7(2) (3) Subject to subsection (4), where the accident occurs when automobile A is turning left to enter a parking place or private road or driveway and automobile B is overtaking or passing automobile A, (a) the driver of automobile A is 75% at fault for the accident, and (b) the driver of automobile B is 25% at fault for the accident. Figure 7: section 7(3) (4) Where the accident occurs when automobile A is turning left to enter a parking place or private road or driveway and automobile B is overtaking or passing one or more automobiles stopped behind automobile A, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. Figure 8: section 7(4) Automobiles travelling in opposite directions 8 (1) This section applies to an accident in which automobile A and automobile B collide while travelling in opposite directions and in adjacent lanes. (2) Where neither automobile A nor automobile B are changing lanes when the accident occurs and both automobiles are on or over the centre line when the accident occurs, the driver of each automobile is 50% at fault for the accident. Figure 9: section 8(2) (3) Where the location on the roadway of automobile A and automobile B when the accident occurred cannot be determined, the driver of each automobile is 50% at fault for the accident. (4) Where only automobile B is over the centre line when the accident occurs, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. Figure 10: section 8(4) (5) Where the accident occurs when automobile B turns left into the path of automobile A, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. Figure 11: section 8(5) (6) Where the accident occurs when automobile B is entering the highway from a parking place or private road or driveway and automobile A is overtaking or passing another automobile, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. Figure 12: section 8(6) Automobile entering highway from parking place or private road or driveway 9 (1) This section applies to an accident in which automobile A and automobile B collide while automobile A is travelling on a highway and automobile B is entering the highway from a parking place or private road or driveway. (2) Where the accident occurs when automobile B is entering the highway from a parking place and automobile A is travelling past the parking place on the highway, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. Figure 13: section 9(2) (3) Where the accident occurs when automobile B is entering the highway from a private road or driveway, automobile A is travelling past the private road or driveway on the highway and there are no traffic signs at the intersection of the highway and the private road or driveway, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. Figure 14: section 9(3) Automobile entering controlled highway 10 Where an accident occurs in which automobile A and automobile B collide while automobile A is travelling on a controlled highway and automobile B is entering the controlled highway from an entrance lane, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. Figure 15: section 10 Chain reaction accidents 11 (1) This section applies to chain reaction accidents. (2) The degree of fault with respect to each accident between 2 automobiles involved in a chain reaction accident must be determined without reference to any other accidents in the chain reaction accident that involve either of the automobiles. (3) Where all automobiles involved in a chain reaction accident are travelling on a highway and in forward motion when the accident occurs, (a) with respect to the accident between automobiles A and B, where automobile A is the first vehicle and automobile B is the 2nd vehicle, neither driver is at fault, and (b) with respect to the accident between automobiles B and C, where automobile B is the 2nd vehicle and automobile C is the 3rd vehicle, the driver of automobile B is not at fault and the driver of automobile C is 100% at fault. (4) Where all automobiles involved in a chain reaction accident, except automobile C, are stopped when the accident occurs, (a) with respect to the accident between automobiles A and B, where automobile A is the first vehicle and automobile B is the 2nd vehicle, neither driver is at fault, and (b) with respect to the accident between automobiles B and C, where automobile B is the 2nd vehicle and automobile C is the 3rd vehicle, the driver of automobile B is not at fault and the driver of automobile C is 100% at fault. Figure 16: section 11(4) Pile-ups 12 (1) This section applies to pile-ups. (2) With respect to each accident between 2 automobiles involved in a pile-up, the driver of each automobile involved in the accident is 50% at fault. Figure 17: section 12(2) Intersections without traffic signs or traffic control signals 13 (1) This section applies to an accident in which automobile A and automobile B collide in an intersection without traffic signs or traffic control signals. (2) Where the accident occurs when automobile A enters the intersection before automobile B, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. (3) Where the accident occurs when both automobile A and automobile B enter the intersection at the same time, and automobile A is located to the right of automobile B in the intersection, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. (4) Where it cannot be determined whether automobile A or automobile B entered the intersection first, the driver of each automobile is 50% at fault for the accident. Intersections with traffic signs 14 (1) This section applies to an accident in which automobile A and automobile B collide in an intersection with traffic signs. (2) Where the accident occurs when the driver of automobile B fails to obey a traffic sign, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. (3) Where the accident occurs when the drivers of automobile A and automobile B each fail to obey a stop sign, the driver of each automobile is 50% at fault for the accident. (4) Where it cannot be determined whether the driver of automobile A or automobile B, or both, failed to obey a stop sign when the accident occurred, the driver of each automobile is 50% at fault for the accident. (5) Where the accident occurs when automobile A stops first at an all-way stop intersection, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. (6) Where the accident occurs when both automobile A and automobile B arrive at an intersection with an all‑way stop sign at the same time, and automobile A is stopped to the right of automobile B at the intersection, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. (7) Where it cannot be determined whether automobile A or automobile B arrived at an intersection with an all‑way stop sign first, the driver of each automobile is 50% at fault for the accident. Intersections with traffic control signals 15 (1) This section applies to an accident in which automobile A and automobile B collide in an intersection with traffic control signals. (2) Where the accident occurs when the driver of automobile B fails to obey a traffic control signal, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. (3) Where it cannot be determined whether the driver of automobile A or the driver of automobile B failed to obey a traffic control signal when the accident occurred, the driver of each automobile is 50% at fault for the accident. (4) Where the traffic control signals at an intersection are inoperative or malfunctioning, the degree to which each driver is at fault for the accident must be determined in accordance with this Regulation as if the intersection was an intersection with an all-way stop sign. Parking lots 16 (1) This section applies to an accident in which automobile A and automobile B collide in a parking lot. (2) The degree to which a driver is at fault in an accident that occurs on a thoroughfare must be determined in accordance with this Regulation as if the thoroughfare were a highway. (3) Subject to subsection (5), where the accident occurs when automobile A is travelling on a thoroughfare and automobile B enters the thoroughfare from a feeder lane and fails to yield the right of way to automobile A, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. (4) Where the accident occurs when automobile A is travelling on a thoroughfare or feeder lane and automobile B is entering the thoroughfare or feeder lane from a parking space and fails to yield the right of way to automobile A, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. (5) Where an accident occurs in an intersection in a parking lot (a) with a traffic sign, the degree to which each driver is at fault must be determined in accordance with section 14, and (b) without a traffic sign, the degree to which each driver is at fault must be determined in accordance with section 13 if it cannot be determined whether the roads are thoroughfares or feeder lanes. Parked automobiles 17 (1) Subject to subsection (2), where an accident occurs in which automobile B collides with automobile A while automobile A is parked, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. (2) Where automobile A is illegally parked, stopped or standing when the accident occurs and the accident occurs outside of an urban area, (a) the driver of automobile A is 100% at fault for the accident, and (b) the driver of automobile B is not at fault for the accident. Driver fails to obey sign or direction 18 Where an accident occurs in which automobile A and automobile B collide when the driver of automobile B fails to obey a direction given by a peace officer or a sign prohibiting entry, overtaking, passing or turning, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. Backing up or making U-turns 19 Where an accident occurs in which automobile A and automobile B collide while automobile B is backing up or making a U-turn, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. Open doors 20 (1) Subject to subsection (2), where an accident occurs in which automobile A collides with automobile B when the driver of or passenger in automobile B opens the automobile door or when the driver of or passenger in automobile B leaves the automobile door open, (a) the driver of automobile A is not at fault for the accident, and (b) the driver of automobile B is 100% at fault for the accident. (2) Where an accident occurs in which automobile A collides with automobile B when the driver of or passenger in automobile B opens the automobile door or leaves the automobile door open in a manner that is reasonably safe and does not constitute a hazard to moving traffic, (a) the driver of automobile A is 100% at fault for the accident, and (b) the driver of automobile B is not at fault for the accident. Driving offences 21 (1) Where an accident occurs in which automobile A and automobile B collide, the degree to which the drivers of automobile A and automobile B are each at fault for the accident must be determined in accordance with the ordinary rules of law and not in accordance with this Regulation if (a) the driver of automobile A is charged with a driving offence referred to in subsection (2), and (b) the driver of automobile B would have been wholly or partly at fault for the accident if fault were determined under this Regulation. (2) For the purposes of this section, where one or more of the following occurs as a result of an accident, it constitutes being charged with a driving offence: (a) a driver is charged with operating an automobile while the driver’s ability to operate the automobile was impaired to any degree by alcohol or a drug or by a combination of alcohol and a drug; (b) a driver is charged with having, within 2 hours after ceasing to operate an automobile, (i) a blood alcohol concentration, (ii) a blood drug concentration, or (iii) a blood alcohol concentration and blood drug concentration that is equal to or exceeds the limits permitted by law; (c) a driver is charged with an indictable offence under the Criminal Code (Canada) related to the operation of an automobile; (d) a driver is given a demand to provide a breath sample or a sample of a bodily substance and the driver is charged with failing or refusing to comply with the demand; (e) a driver is charged with exceeding the speed limit by 31 or more kilometres per hour; (f) a driver is given a demand to perform physical coordination tests or to submit to an evaluation and the driver is charged with failing or refusing to comply with the demand; (g) a notice of administrative penalty is issued to a driver under section 88.1 of the Traffic Safety Act . Voluntary Payments, Prescribed Classes of Contracts and Permitted Indemnification Voluntary payment 22 For the purposes of section 585.1(7)(c) of the Act, the acceptance by the insurer of a person who is not at fault of a voluntary payment from a person who is at fault in the amount the insurer paid as indemnity in respect of its insured is not subrogation against the person who makes the payment. Permitted indemnification — selling, repairing, etc. 23 (1) For the purposes of section 585.1(7)(c) of the Act, the insurer of an automobile that is in the care, custody or control of a person who is engaged in the business of selling, repairing, maintaining, servicing, storing or parking automobiles has a right of indemnification against the person. (2) The amount of the indemnity is limited to the proportion of the loss of use or damage that is attributable to the fault, determined in accordance with this Regulation, of the person or an employee or agent of the person. Permitted indemnification — towing 24 (1) In this section, (a) “lessee” means a person to whom a lessor leases or grants exclusive use of a motor vehicle; (b) “lessor” means a lessor as defined in section 187 of the Traffic Safety Act ; (c) “rentee” means a person to whom a renter rents a motor vehicle; (d) “renter” means a renter as defined in section 187 of the Traffic Safety Act. (2) For the purposes of section 585.1(7)(c) of the Act, the insurer of an automobile that is being towed by another automobile has a right of indemnification against the lessee or rentee or, if there is no lessee or rentee, the owner of the automobile towing it, (a) if the lessee, rentee or owner, as the case may be, is engaged in the business of towing automobiles, or (b) if the automobile towing the insured automobile has a gross vehicle weight of 4500 kilograms or more. (3) The amount of the indemnity is limited to the proportion of the loss of use or damage that is attributable to the fault, determined in accordance with this Regulation, of the driver of the automobile that is towing the insured automobile. Permitted indemnification — loss of or damage to contents 25 (1) For the purposes of section 585.1(7)(c) of the Act, the insurer of an automobile, the contents of which suffer loss of use or damage in an amount greater than $20 000 as a result of an accident, has a right of indemnification against the insurer of the other automobile involved in the accident. (2) The amount of the indemnity is limited to the proportion of the loss of use or damage over $20 000 that is attributable to the fault, determined in accordance with this Regulation, of the driver of the other automobile. Prescribed classes of contracts 26 For the purposes of section 585.1(8) of the Act, contracts evidenced by a motor vehicle liability policy are a prescribed class of contract. Expiry and Coming into Force Expiry 27 For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on January 31, 2027. Coming into force 28 This Regulation comes into force on the coming into force of section 585.1 of the Insurance Act .