Date: Wed, 8 Nov 2006 14:21:04

From: David Cheifetz

Subject: Punitive damages for negligence

Russ,

But, BC folk with BC policies occasionally drive in Ontario (even some who aren't transporting what is supposedly BC's most profitable agricultural cash crop).

Bear in mind that the various provinces have all (I think, all) signed the inter-provincial undertaking by which they've generally agreed (as I recall the form - I'm too lazy to look it up) that if driver with one province's form of auto liability policy has an accident in another province, the driver's policy has at least the minimum limits of the policy form of province where the accident occurred (not a problem here) and no exclusions that aren't in that province's policy.

If my recollection of the wording is accurate, there'll be an argument about the effect of the BC provision if the accident occurs in Ontario and Ontario law applies, no?

David

-----Original Message-----
From: Russell Brown
Sent: November 8, 2006 7:56 AM
Subject: Re: ODG: RE: punitive damages for negligence

David's last point (about auto insurance coverage being highly regulated in Canada) also explains why punitive damages are NOT covered in British Columbia, where for over 30 years a public auto insurer has enjoyed a statutory monopoly. This is a function of both section 64 of the Insurance (MV) Act (which provides for payment of liability imposed on the insured for injury or death), and section 56(1)(c) of the Regulations to the Act, which states, inter alia:

[the insurer] is not liable under [Section 64 of the Act] in respect of punitive or exemplary damages or other similar non-compensatory damages.

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