Chapter 7 Loss of or Damage to the Insured Automobile Narrative Model Application Questions

• Specified Perils:
•  
• a)      Fire
• b)      Theft(except by an employee or member of the insured’s household) 
• c)      Lightning
• d)      Windstorm
• e)      Earthquake
• f)       Hail
• g)      Explosion
• h)      Riot
• i)        Civil commotion
• j)        Falling or forced landing of an aircraft or a portion of it
• k)      Rising water
• l)        The stranding, sinking, burning, derailment, upset, or collision of a conveyance transporting the vehicle on land or water.

• a)Reduction for Anti-Theft Devices
• -          Manitoba Public Insurance will recognize insureds who take steps to protect their vehicles from theft by reducing the basic $500
• o   Or optional $300 all perils deductible by 50 percent should their vehicle be stolen
• o   Or attempted to be stolen while an anti-theft device is in place.
• -          The Device does not have to be defeated.
• o   Anti-theft devices include, but are not limited to Steering-wheel locks,
• o   Alarm systems,
• o   Electronic immobilizers, and
• o   Wheel locks.
•  

• b)Types of Vehicles that Do Not Have
• Physical Coverage Under Autopac

•  
• - Public service buses

• - Trucks and truck tractors with a gross vehicle weight(GVW) over 16,330 kg (except coverage applies to trucks and truck tractors over 16,330 kg if they are
• drive-away units,

o Farm trucks,

o Fisherman’s trucks

o And dealer-plated vehicles)

- Commercial trucks (CT Plated) over 5,499 kg GVW

- Public service trucks (PSV plated) of any size, operated beyond 161 km outside Manitoba

- Semi-Trailers with 5-year license plates

• - Vehicles registered under the Off-Road Vehicles Act (power toboggans, ATVs, dirt bikes, etc.)

• Requirements Upon Occurrence of Loss
•  
• -          If the insured vehicle suffers loss or damage that is covered under All Perils, the insured must
• o   Notify the Corporation as soon as reasonably possible (in addition to completing any report that may be required) with the fullest information available at the time,
• o   And at the expense of the Corporation,
• o   Protect the vehicle from further loss or damage as far as reasonably possible;
• o   Deliver a statutory declaration within 90 days, if required by the Corporation, stating to the best of the insured’s knowledge and information
• §  The place,
• §  Time,
• §  Cause,
• §  And amount of the loss or damage;
• -          The interest of the insured,
• o   And all others therein;
• -          The encumbrances thereon;
•  
• -          All other insurance relating to the insured vehicle,
•  
• -          Whether valid or invalid;
•  
• -          And that the loss or damage was not willfully procured by the insured
•  
• o   Or by any person with the collusion of the insured,
• o   Or by any person with the connivance of the insured.
•  

1) You are a broker and one of your clients, Joe Button, has just purchased a new vehicle. To protect his investment, he purchased a Basic Autopac policy with Comprehensive and Collision coverages. The Collision deductible is $300.00 and the Comprehensive deductible is $100.00. – this is impossible in MB. Only option for vehicles in Manitoba is All Perils coverage which would have the same deductible for collision and comprehensive.

How would the policy you sold him respond under the following conditions?

a) While driving to his favorite fishing hole, the insured hits a moose. The impact with the animal causes $10,000 damage to the vehicle.

b) Joe’s roommate steals the insured’s vehicle and disappears.

c) While driving to work Joe’s vehicle is struck from behind by another vehicle that was attempting to change lanes, causing $10,000 damage to Joe’s vehicle. The 3rd party driver is determined to be 100% at fault for the accident.

d) Joe runs a red light and a police cruiser attempts to pull him over to bring Joe’s vehicle to a stop. Joe attempts to avoid arrest by speeding up and escaping the police cruiser. Joe loses control of his vehicle when speeding and collides with the guard rail, causing $10,000 worth of damages. Joe is eventually charged.

 

1) a) Basic Autopac Coverage

- Joe’s collision damage with the moose would be covered under the Comprehensive section of his All Perils coverage as part of his Basic Autopac coverage.

- Basic Autopac includes All Perils coverage

o And Comprehensive coverage.

- Comprehensive insurance covers loss of or damage to the vehicle by most causes,

except those covered by collision.

- 1 of the perils covered includes impact with animals.

- Joe does have a comprehensive deductible of $100 which would apply.

- As a result Joe would receive $9,900 from MPI for the loss. – this isn’t quite accurate as the deductible would not apply if he had a $300, $200, or $100 deductible. Only a $500 deductible applies on wildlife claims.

 

 

 b) Basic Autopac Exclusions

- Joe’s loss would not be covered under his Basic Autopac coverage.

- The Automobile Insurance Coverage Regulation further clarifies the scope of all perils coverage under basic Autopac by including provisions limiting the Corporation’s liability under this coverage.

• - They state that All Perils coverage does not cover loss or damage caused by the theft of
• the vehicle if the person who stole it lives in the same household as,

o Or is an employee of, the insured person.

 

c) Basic Autopac Coverage

• - The damage to Joe’s vehicle caused by the 3rd party vehicle would be covered
• under the Collision section of his All Perils coverage as part of his Basic
• Autopac coverage.

- Basic Autopac includes All Perils coverage.

o And Comprehensive coverage.

- Collision coverage indemnifies an insured for damage to the vehicle caused by impact with another vehicle,

o Person,


o Or object,

o Or with the surface of the road.

- This coverage is available to an insured who is at fault in the crash.

- It will also cover the posts of towing,

o Storage,


o And salvage disposal, if needed.

- Joe does has have a Collision deductible of $500 which would apply.

• - As a result Joe would receive $9,900 from MPI for the loss. – you may want to add
• that if the other party carries a valid Autopac policy, Joe’s deductible would
• be waived through their policy

 

D) Basic Autopac Conditions  Coverage

- Joe’s damages would not be covered by his basic Autopac policy.

- The automobile Insurance Coverage Regulation (Part 3, Division 2) includes conditions of coverage that further clarify the scope of all perils coverage under basic Autopac.

- To ensure that their All Perils coverage is valid, insureds must follow these conditions.

- The Regulation (Part 3, Division 2, Section 56(1)) states that the insured shall not drive or operate the vehicle to escape

o Or avoid arrest

o Or other similar police action

o Or in contravention of a signal from a peace officer requiring him or her to bring the vehicle to a stop.