Compulsory Automobile Insurance Act

Definitions

1 (1) In this Act,

“agent” means an agent or broker within the meaning of the Insurance Act who is authorized to solicit automobile insurance; (“agent”)

“Association” means the Facility Association referred to in subsection 7 (1); (“Association”)

“Authority” means the Financial Services Regulatory Authority of Ontario continued under subsection 2 (1) of the Financial Services Regulatory Authority of Ontario Act, 2016; (“Autorité”)

“automobile insurance” means insurance against liability arising out of bodily injury to or the death of a person or loss of or damage to property caused by a motor vehicle or the use or operation thereof, and which,

(a) insures at least to the limit required by section 251 of the Insurance Act,

(b) provides the statutory accident benefits set out in the Statutory Accident Benefits Schedule under the Insurance Act, and

(c) provides the benefits prescribed under section 265 of the Insurance Act; (“assurance-automobile”)

“Chief Executive Officer” means the Chief Executive Officer appointed under subsection 10 (2) of the Financial Services Regulatory Authority of Ontario Act, 2016; (“directeur général”)

“driver’s licence” has the same meaning as in the Highway Traffic Act

“highway” has the same meaning as in the Highway Traffic Act

“insurance card” means,

(a) a Motor Vehicle Liability Insurance Card in the form approved by the Chief Executive Officer,

(b) a policy of automobile insurance or a certificate of a policy in the form approved by the Chief Executive Officer, or

(c) a document in a form approved by the Chief Executive Officer; (“carte d’assurance”)

“insurer” means an insurer licensed under the Insurance Act and carrying on the business of automobile insurance, but does not include an insurer whose licence is limited to contracts of reinsurance

“justice” means a justice under the Provincial Offences Act

“lessee” means, in respect of a motor vehicle, a person who is leasing or renting the motor vehicle for a period of 30 days or more

“motor vehicle” has the same meaning as in the Highway Traffic Act and includes trailers and accessories and equipment of a motor vehicle

“Plan” means the Plan of Operation referred to in subsection 7 (3)

“police officer” means a chief of police or other police officer or a person appointed under section 223 of the Highway Traffic Act for the purpose of carrying out the provisions of that Act

“Registrar” means the Registrar of Motor Vehicles

“regulations” means the regulations made under this Act

“Superintendent” means the Superintendent of Financial Services appointed under the Financial Services Commission of Ontario Act, 1997.

Streetcars

(2) An electric streetcar that runs on rails principally on a highway shall be deemed to be a motor vehicle for the purposes of this Act.

Exception re: excluded driver
(3) Even if a motor vehicle is insured under a contract of automobile insurance, it shall be deemed to be an uninsured motor vehicle for the purposes of this Act while it is being operated by an excluded driver as defined in the Insurance Act with respect to that contract unless the excluded driver is a named insured under another contract of automobile insurance.

2 (1) Subject to the regulations, no owner or lessee of a motor vehicle shall,

(a) operate a motor vehicle; or

(b) cause or permit the motor vehicle to be operated,

on a highway unless the motor vehicle is insured under a contract of automobile insurance.

Definition

(2) For the purposes of subsection (1), where a permit for a motor vehicle has been issued under subsection 7 (7) of the Highway Traffic Act,

“contract of automobile insurance”, with respect to that motor vehicle, means a contract of automobile liability insurance made with an insurer.

Offence

(3) Every owner or lessee of a motor vehicle who,

(a) contravenes subsection (1) of this section or subsection 13 (11); or

(b) surrenders an insurance card for inspection to a police officer, when requested to do so, purporting to show that the motor vehicle is insured under a contract of automobile insurance when the motor vehicle is not so insured,

is guilty of an offence and is liable on a first conviction to a fine of not less than $5,000 and not more than $25,000 and on a subsequent conviction to a fine of not less than $10,000 and not more than $50,000 and, in addition, his or her driver’s licence may be suspended for a period of not more than one year.

Justice to secure possession of driver’s licence

(4) Where a justice makes a conviction under subsection (3) and the driver’s licence of the person convicted is suspended by the justice, the justice shall take the driver’s licence and forward it to the Registrar.

Police officer may secure possession

(5) Where a driver’s licence is suspended under this section and the person to whom the suspension applies refuses or fails to surrender his or her licence to the justice forthwith, any police officer may, and upon the direction of the Registrar shall, take possession of the licence and forward it to the Registrar.

Offence

(6) Every person who fails or refuses to surrender his or her driver’s licence when required by a police officer under subsection (5) is guilty of an offence and on conviction is liable to a fine of not more than $200.

Impounding motor vehicle

(7) In the event of a conviction under subsection (3), the justice may order that the motor vehicle,

(a) that was operated in contravention of subsection (1);

(b) for which a false statement in respect of insurance was made in contravention of subsection 13 (11); or

(c) for which an insurance card was produced in contravention of clause (3) (b),

shall be seized, impounded and taken into the custody of the law for a period of not more than three months.

Cost of storage

(8) All costs and charges for the care and storage of the motor vehicle are a lien upon the motor vehicle that may be enforced in the manner provided by the Repair and Storage Liens Act.

Release of vehicle on security given by person convicted

(9) If the person convicted under subsection (3) gives security to the satisfaction of the convicting justice, by bond, recognizance or otherwise, that the motor vehicle will not be operated upon a highway during the period specified by the justice in making an order under subsection (7), the motor vehicle may be released to the person convicted, and if the motor vehicle is operated upon a highway during such period it shall be deemed to have been operated without a permit, as defined in subsection 6 (1) of the Highway Traffic Act.

Three-year limitation period

(10) Proceedings may be commenced at any time within three years after the date on which an offence was, or is alleged to have been, committed.

Operator to carry insurance card

3 (1) An operator of a motor vehicle on a highway shall have in the motor vehicle at all times,

(a) an insurance card for the motor vehicle; or

(b) an insurance card evidencing that the operator is insured under a contract of automobile insurance,

and the operator shall surrender the insurance card for reasonable inspection upon the demand of a police officer.

Excluded driver to carry insurance card

(2) Despite subsection (1), an operator of a motor vehicle who is named as an excluded driver under the contract of automobile insurance under which the vehicle is insured shall have in the vehicle at all times an insurance card evidencing that the operator is a named insured under another contract of automobile insurance, and the operator shall surrender the insurance card for reasonable inspection upon the demand of a police officer.

Offence

(3) A person who contravenes this section is guilty of an offence and on conviction is liable to a fine of not more than $400.

Particulars to be disclosed

4 (1) An operator of a motor vehicle on a highway who is directly or indirectly involved in an accident shall, on the request of any person directly or indirectly involved in the accident, disclose to the person the particulars of the contract of automobile insurance insuring the motor vehicle.

Definition

(2) For the purposes of subsection (1),

“particulars of the contract of automobile insurance” means,

(a) the name and address of the insured,

(b) the make, model and serial number of the insured vehicle,

(c) the effective date and expiry date of the contract,

(d) the name of the insurer,

(e) the name of the insurer’s agent, if any, and

Offence

(3) A person who contravenes subsection (1) is guilty of an offence and on conviction is liable to a fine of not more than $400.

Offence for false statement

(11) No person shall, in certifying under paragraph 1 of subsection (8) that a motor vehicle is insured under a contract of automobile insurance, make a statement that he or she knows or ought to know is false.

Definition

(12) In this section,

“contract of automobile insurance” means a contract of automobile insurance made with an insurer.

Possession, use, sale, etc., of false or invalid insurance card

13.1 (1) No person shall,

(a) have a false or invalid insurance card in his or her possession that he or she knows or ought to know is false or invalid;

(b) use a false or invalid insurance card that he or she knows or ought to know is false or invalid;

(c) sell, give, deliver or distribute a false or invalid insurance card that he or she knows or ought to know is false or invalid; or

(d) produce for inspection any other evidence, that he or she knows or ought to know is false or invalid, that the motor vehicle is insured under a contract of automobile insurance. 2002, c. 22, s. 34.

Offence

(2) A person who contravenes this section is guilty of an offence and is liable on a first conviction to a fine of not less than $10,000 and not more than $50,000 and on a subsequent conviction to a fine of not less than $20,000 and not more than $100,000.

Definition

(3) In this section,

“contract of automobile insurance” means a contract of automobile insurance made with an insurer.

Statutory declaration

(2) A statutory declaration by a person who is identified in the declaration as an officer or employee of an insurer is admissible in evidence as proof, in the absence of evidence to the contrary, that the motor vehicle identified in the declaration was or was not insured by the insurer on the date or dates specified in the declaration.

Definition
14 (1) In this section,

“person” includes the Association.

General penalty

(2) Every person who contravenes any provision of this Act or the regulations is guilty of an offence and, except where otherwise provided, on conviction is liable on a first conviction to a fine of not more than $250,000 and on each subsequent conviction to a fine of not more than $500,000.

Insurers, Association

(3) If an insurer or the Association is convicted of an offence under subsection (2), the fine shall not be less than $5,000.

Directors, officers, etc.

(4) Every director, officer or chief agent of an insurer or the Association is guilty of an offence who,

(a) caused, authorized, permitted or participated in the insurer or Association committing an offence to which subsection (2) applies; or

(b) failed to take reasonable care to prevent the insurer or Association from committing an offence to which subsection (2) applies.

Penalty

(5) On conviction for an offence under subsection (4), the person convicted is liable on a first conviction to a fine of not more than $100,000 and on a subsequent conviction to a fine of not more than $200,000.

Application

(6) Subsection (4) applies whether or not the insurer or Association has been prosecuted for or convicted of an offence to which subsection (2) applies.

Restitution

(7) A court that convicts a person of an offence to which this section applies may, in addition to any other penalty, order the person to make compensation or restitution in relation to the offence.