Bill 13 (Legislature 5, Session 3)

L5 S3 9464

Alberta — Bills

BILL No. 13 of 1 \)2:3.

An Act respecting Conditions in Policies of Automobile Insurance. (Assented to , 192~3.) HIS MAJ~sTy, by and with the advice. and consent of the LeglRlatlve ARsembly of the Provmce of Alberta, enacts as follows: SHOHT 'I'I'1'L1£. 1. This Act may be cited aR "The A utornobile Insurance POll:C!f A ct."

INTERPRETATION. 2.

In thiti Act, unless the context otherwise requires,-- (a) "Automobile" shall include all motor vehicles, locomobiles, motorcycles and other vehicles pro pelled otherwise than by muscular power, and their trailers, accessories and equipment, but shall not include the cars of electric and steam railways and other motor vehicles running only upon rails or tracks; (b) "Contract" shall mean an agreement whereby an immrer undertakes to indemnify an insured against liability for loss or damage to persons or property caused by an automobile or the operation thereof and against loss of or damage in an automobile, and includes a policy, certificate, interim receipt, renewal receipt or writing evidencing the contract, whether sealed or not, and a bintiing oral agree ment; (/:) "Insuml'" shall include any cOI'poration OJ' any Rociety or association, incorporated or unincor porated, or any person or partnership, or any undenvriter or group of underwriters that under takes or effects, or agrees or offers for valuable conRideration to undertake or effeet, a contract of insuranee within the meaning of this Act; (d) "Policy" shall mean an instrument containing all the terms of the agreement between the parties. 3.

The provisions of The Alberta Insurance Act relating to fire insurance policies, and

schedule C to the said Act shall not apply to a contract to which this Act applies.

2 4:. No contract shall be made for a term exceeding three years, but any contract may be renewed by the delivery of a renewal receipt or a new pt'emiulll note. ~.-

(1) No insurer Hhall undertake or efTect allY eontraet for a period exceeding fourteen days without a written application therefor, Higned by the insmed or his agent, duly authorized in writing.

(2) Every written application Hhall set forth- (

a) the name, address and occupation or business of the assured; (

b) the description of the automobile; (

c) its purchase price to the insured, and whether fully paid or not; (

d) whether purchased new 01' othenriHc; (

e) particulars of any mortgage, lien or other incum brance thereon; (.

f) the place where the automobile is and will be usually kept; (0) the purposes for which and the locality where it. is and will be chiefly used; (

h) the fact of any accident in which any automobile owned or operated by the insured has within the last three years preceding the application been involved; (

i) particulan.; of any claim made against or by the insured in respect of the ownership 01' operation of any automobile within such period; (

j) whether any insurer has cancelled any automobile policy of the insured or refused automohile insurance to the insured; (

k) such further information as the insurer may reqUIre. d

(3) Upon every written application there shall be printed or stamped in conspicuous type, not less in size than ten point, and in red ink the following words: " If the applicant knowingly misrepresents or conceals any fact or circumstance required by this application to be made known, the contract of insurance shall be void as to the property or risk under taken in respect of which the misrepresentation or omission iH made." 6. Every policy shall contain- (

a) the name and address of the immrcr; (

b) the name, address and occupation or business of the insured;

(

c) the name of the person to whom the insurance is payable; (

d) the premium or other consideration for the insur ance; (

c) Lhe i:iUbject matter or the insurance; (

J) the indemnity for which the insurer l11.ay become liable; (

g) the event on the happening of which such liability is to accrue; (

h) the term of the insurance. 7. f\ubject to sections 8, 9 and 10, the conditions set forth in the

schedule shall be deemed to be part of every contract in force in the Province, and shall be printed on every policy, with the heading" f\tatutory Conditions." S.-

(1) If the policy insures only against accident to the person or damage to the property of the insured, statu tory condition numbered 8 may be omitted.

(2) If the policy does not insure against loss of or damage to the insured automobile, statutory conditioll numbered D may be omitted.

(3) Where a statutory condition is so omitted, there shall be inserted after the condition number the following words: "This condition is not applicable to this policy and is omitted pursuant to f\tatute." 9. A policy may contain a clause to the effect that the insurer shall be liable only for an agreed proportion of any loss or for the amount of a loss after deduction of a sum specified in the policy, in which case there shall be printed or stamped upon the face of the policy in conspicuous type amI in red ink the words: "This policy contains a partial liability clause." 10.--

(1) If an insurer desires to vary, omit or add to the statutory conditions or any of them, otherwise than as provided in sections 8 and 9 hereof, there shall be printed in conspicuous type, not less in size than ten-point and in red ink, immediately after such conditions, the proposed yariations or additions or a reference to the omissions, with these introductory words: "VARIATIONS IN CONDITIONS. "This policy is issued on the above statutory conditions, with the following variations, omissions and additions, which are, by virtue of The Al1tornob1:Ze Insl1rance Policy Act, in force so far only as they shall be held to be just and reasonable to be exacted by the company."

(2) No variation, omISSIOn or addition shall be bindin!!: on the insured unless subsection (1) has been complied with; and any variation, omission OJ' nddi tioll shall be Ho binding only in so far as it is held by the Court before which a question relating therein if) tried to he just and reasonable. 11. No red ink shall be used in printing It poli(~y except. for the purposes mentioned in this Act and for the name, auuress anu emblem of the immrer and the number of the policy. 12.

In any case where there has been imperfect COlll pliance with a statutory condition as to the proof of loss to be given by the insured 01' any other matter or thing required t.o be done or omitted by the insured with respect. to the loss, 'and a consequent forfeiture or avoidance of the insurance in whole or in part, and the Court deems it inequitable that the insurance should be forfeited or avoided on that ground, the Court may relieve against the forfeiture or a\Toidance on such terms as it may deem just. 13. This Act shall come into force on a day to be fixed by the Lieutenant Governor by his proclamation.

SCHEDULE. STATUTORY CONDITlONS. 1. All statements made by the insured UPOll the appli cation for this policy shall, in the absence of fraud, be deemed representations and not warranties, and no such statement shall be used in defence of a claim under this policy, unless it is contained in the written application for the policy and unless a copy of the application, or such part thereof as is material to the contract, is indorsed upon 01' attached to the policy when issued. 2.

If any person applying for insurance falsely describet. the property to the prejudice of the insurer or knowingly misl'epresents 01' conceals or omitf! to communicate any circumstance which is required by the terms of the written application to be made known to the insurer, the contract shall be void as to the property or risk undertaken in respect, to which the misrepresentation or omission is made. 3.

Any change material to the risk, and within the control and knowledge of the insured, shall void the policy as to the part affected thereby, unless the change if! promptly notified in writing to the insurer or its local agent; and the insurer when so notified may return the unearned portion

(if nny) of the premium paid and cancel the policy, or may notify the insured in writing that if he desires the policy to continue in force he must, within fifteen days of the receipt of the notice pay to the insurer an additional prem ium, and in default of such payment the policy shall no longer be in force and the insurer shall return the unearned portion (if any) of the premium paid. 4.

After a written application for insurance, it shall be deemed that any policy sent to the insured is intended to be in lwcor<iance with the tel"ln:-; of the applict1tioll, unless the insurer points out by registered letter addressed to the insured the particulars -wherein it differs from the appli cation, in which case the insured may within one week from tIle receipt of the notification reject the policy. 5.

The insurer shall not be liable under this policy while the automobile, with the knowledge, consent or connivanee of the im~ured, is being driven by a person under the age limit fixed by law, or, in any event, under the age of sixteen yenrs, or by an intoxicated person. (i.-

(1) Unless otherwise specifically stated in the policy, or indorHed thereon, the insurer shall not be liable- (0) for loss or damage caused by earthquake, invasion, illHUlTection, riot, civil commotion, militmy or usn rped power; (

I) if the interest of the insured in the automobile is other than unconditional and sole ownership; (

c) if the automobile is or becomes incumbered by any lien or mort.gage; (rl)if there is any material change in the nnture of the insurable interest of the insureJ ill the automobile, by sale, assignment, or otherwise, except through change of title by succession, or by death, or by an authorized assignment under 'l'he Bankruptcy Act; (

e) if at the time a loss, damage or accident occurs there is any other insurance, of the saBle intCl"est, whether valid or !lot, covering the :-3aid 108:-3 or damage, or any portion thereof, which would have been in force if this insurance had not been effected.

(2) If permission has been given for other insurance under paragraph (

e) of this condition, the insurer will be liable only for his rateable proportion of such loss or damage. 7. The insurer shall be permitted at all reasonable times to inspect the automobile and its equipment. 8.-

(1) Upon the occurrence of an accident involving bodily 'injuries or death, or damage to property of others, the insured shall promptly give written notice thereof to the insurer, with the fullest information obtainable at the time. The immred shall give like notice with full parti culars of any elaim made on account of such accident,

and every writ, letter, document or advice receiveu by the insured from or on behalf of any claimant shall be im mediately forwarded to the inRurer.

(2) The ill1lul'cd ~halllloL volullLmily nssullw ltlly linuiliLy to settle any claim except at his own CORL The insured shall not interfere in any negotiations for settlement, 01' in any legal proceeding, but, whenever requested by the J insurer, shall aid in securing information 1tllcl evidence and the attendance of any witnesses, and shall co-operate with the insurer, except in a pecuniary way, in all matters which the insurer deems necessary in the defence of any action or proceeding or in the prosecution of any appeal.

(3) No action to recover the amount of a claim under this policy shall lie against the insurer unless the foregoing requirements are complied with and such action is brought after the amount of the los~ had been aRcertained either by a judgment against the insured after trial of the issue or by agreement between the parties with the written consent of the insurer and no such action shall lie in either event unless brought within one year thereafter. \1. -( 1) Upon the occurrence of any 10SR of or damage to the insured automobile, the insured shall, if such loss is cm'ered by this policy- (

a) forthwith give notice thereof, in writing, to the insurer, with fullest information obtainable at the time, and shall, at the expense of the insurer, and as far as reasonably possible, pro teet the automobile from further loss or damage, and any sueh further loss or. damage aeeruing directly or indirectly from a failure to protect shall not be recoverable hereunder.

No repairs shall be under taken or any physical evidence of the 10R~ 01' damage removed without the written eonsent of the insurer, exeept such repairs as are immediately necessary for the protection of the automobile from further loss or damage; or until the insurer has had a reasonable time to make the examination provided for in subsection (2) of this condition; (

b) deliver to the insurer within ninety days of the date of the loss or damage a ~tatut()ry declaration stating the place, time and cause of the loss oJ' damage, so far as the insured knows 01' believes, the interest of the insured and of all others in the automobile, the sound value thereof, the amount. of loss or damage thereto, and all othel' insurance, whether valid or not, covering the automobile, and that the loss or damage did not occur through any wilful act or neglect, procurement, means or connivanee of the insured.

(2) After any loss or damage to an insured automobile, the insurer shall have right of access to and exam.ination of

7 such autolllobile by accreliitel agents of the insurer sufficient to enable such a~ent~ to a<;certain the amount of the damage su:-;t.aincll. (:~) Tlw insured shall submit to examination under oath and shall produce for examination, at such reasonable place as is designated by the immrel' or it:-; representatives, all books of account, bills, invoices a,nd other \'ouchers in hi:-; pos:-;c:-;sioll or control which relat.e to the nmttCl's in ([ue:-;t.ion nnd shall permit extnwts and eopie:-; thmeor t.o hn ma,de.

(4) The insurer shall not be liable beyond the a,etual ca,sh \'ahw of t.he automobile at t.he t.ime any loss or damage ocelli'S, and the loss or damage shall be ascertained 0)' estimat('d accol'ding to such actual cash value, with propel' deduction fol' depreciat.ion, however ca.used, a,nd shall in no e\'ent cxceed what it would co~t to repair or replace the autolllobile or a,ny part thereof with material of like kind flnd qualit.y; provided that in the event of any part of t 11(' autolllobile being obsolete and out of stock the liahilit~, of the insurer in respect thereof shall be limited to the \':due of such part at the time of loss or da,ma,ge, not ex(,eedillg the maker's last list price; the ascertainment 01' pst imflt(' of such loss or damage shall be made by the insl1l'ed and the insurer, 01' if they disagree, then by ap praiser~, a.:3 hereunder provided. (:

i) Exrept wherc an appraisal hm; been made, the inlmrer ill~t ead of making payment Illay within a reasonable time I'clmir. ]'('build or replace the property dama,ged or lost \"ith ot he'r or like kind and quality, givillg written notice of the illt Plllioll so to do within sevell day~ after the receipt of the proof of loss; but there can be no abandonment of the autolllobile to the insurer without the consent of the latter.

III the ('\'ent of the insurer exercising such option the sfllvage (if allY) ~hall revert to it. . ((i)' III t.he event of disagreement. as t.o the llatUl'e and <'xl·cnt of the repairs and replacements required, 01' as t.o tlwir adl'<j\w(',\', if effected, or as to the amount payable in I'cspert or allY loss or damage, such questions shall be deterlllined hy appmisel:-; before recover,\' can be had he1'e Hndpr, whet her t.he right to recover on the policy is di"puted OJ' not and independently of all other questions.

The ills\l]'pd and t.he insurer shall ea,ch seled. one appraiser, alld t Iw t\\'() so chosen shflll then select a di~~inte]'ested umpire'. Thereafter the two appraiser!:; together shall est.imatp 01' appraise the loss or damage, stating sepamtely soulld ntlue and damage, or determine the adequacy of su('h I'Ppail's or replacements, and, failing to a,gree, sha,ll submit their differences to the umpire. (

i) I II case either party fail!:; to name an appraiser "'it hill s('\'el1 dear days after· bein/2; served with written notice' so to do, 01' in case the flppmisers fail to agree upon

8 an umpire within fifteen days after theil' appointment, 01' in case an appraiser or umpire refuses to act or is incapable of acting, or dies, a judge of a ~upreme or District Court having jurisdiction in the district in which the appraisal is to be made may appoint such appraiser OJ' umpire on thc application of the insured or the insurer.

(8) An award in writing of the two appraiHcl'H, 01' of onc appraiser and the umpire, shall determine the llat me and extent or adequacy of the repairs and l'CplacCllIollts, 01' the amount of such loss or damage.

(9) Each party shall pay the appraiser Relected by him, and shall bear equally the other expenses of the appraisal and of the umpire.

(10) Neither the insurer nor the immrcd shall bo doomod to have waived any provision or condition of this poliry by any act relating to the appraisal or the delivery and completion of proofs of loss, or to the investigation or adjustment of the claim.

(11) The sum for which the insurer is liable hereunder for loss 01' damage shall be payable within sixty days aflel the proof of loss herein required has been recei,'ed by the insurer; but if appraisa,l is demanded, then within fifteen days after the award has been made by the a.ppmisers. No suit or action, however, may be brought for the rec()"ory of any claim unless the insured has complied with the fore going requirements, nor unless such action is commenced within one year after the happening of the loss. 10.

Notice of claim may be given and proofs of claim may be made by the agent of the insured in case of the absence of the insured 01' in case of inability of the insured to give the notice or make the proof, such absence or in ability being satisfactorily accounted for, or in the likc case 01' if the insured refuses to do ~o by a person to whom any part of the insurance money is payable. 11.

Any fraud or wilfully false statement made under oath, or in a declaration made in relation to allY of the above particulars, shall vitiate the claim of tIl(' person making the declaration in any matter a.ffected b~' such fraud or false statement. 12.

The insurer on paying the loss shall be subrogated to the extent of such payment to all right of recovery against any third party, and on such payment or on assuming liability therefor may require from the insured a transfer of his rights against such third party, and the insured shall execute all documents properly required by the insurer to secure to it such rights. 13.-

(1) This policy may he cancelled at any time at the request of the insured, and the insurer shall, UPOll surrender of the policy, refund the excess of paid premium above the customary short':rate premiulll for the time t.lw policy has been in force.

(2) This policy may be cancelled at n,ny time by the insurer gi"ing to the insured fifteen days' notice in writing of cancellation by registered m::iil, or five days' notice of cancelln,tion personally delivered, and refunding the excess of paid premium beyond the pro rata premium for the expired t.ime.

Repayment of excess premiums may be made by money, post office order, postal note, or cheque. ~uch repayment shall accompany the notice, and in such case t.he fifteen days above mentioned shall commence to run from the day following the receipt of the registered lett.er at the post office to which it was addressed. ] 4. No condition or provision of this policy, either in whole or in pn,rt, shall be deerned to have been waived or altered by the insurer unless the waiver is clearly expressed in writing signed by the manager of the insurer or its chief agent for Cn,nacla or this Provi~lce. ] 5.

AllY 'vri tten notice to the insurer may be delivered at or sont. by regiHtered post to the chief agency or head ofI-ice of t.he insurer in this Province. Written notice may be gi,'en to the insured by letter personally delivered to him or by registered letter addressed to him at his last post office n,ddress notified to the insurer, or, where no address is notified ttnd the address is not known, addressed to him at the post office (if any) from which the application \"as n:ceived.

?\o. 13. rl'H IRD SESSION BIFTH IJEGISLATTJRE 13 GEORGE Y 1923 BILL

An Act respecting Conditions in Policies of Automobile Insurance. Received and read the First time ................... . Second time. . . . . . . . . .. ... .. Third time .................. . EDMONTON: PRINTED BY .T. W. JEFFERY, !{ING'S PRtNTRR 1923 Title: 1923 (5th, 3rd) Bill 13,

An Act respecting Conditions in Policies of Automobile Insurance

Document details

Collection	Alberta — Bills
Citation	L5 S3 9464
Type	bill
Volume / chapter	L5 S3 9464
Language	en
Format	json
Source	PROVINCIAL
Identifier	fc4b1f135d95b558fe5197e3a7c59c3f3e84239b

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