Immediate Changes to Subrogation Rights for Motor Vehicle Claims


Bills 20 and 22 which amend the Insurance (Vehicle) Act and Civil Resolution Tribunal Act received royal assent on May 17, 2018.

An immediate change for insurers concerns the deduction of collateral benefits from tort claims. Section 83 of the Insurance (Vehicle) Act (referred to in section 26 of the Insurance (Vehicle) Amendment Act) is amended so that as of May 17, 2018, certain insurance benefits (with some exceptions such as MSP) are deductible from a tort claim. In practice, this eliminates subrogation rights of extended benefit carriers and means the injured party cannot bring an action to recover certain benefits received elsewhere.

Stay tuned for a more comprehensive review of changes that will affect insurers.