The New Brunswick Insurance Board will not approve differentials for Direct Compensation-Property Damage (DCPD) deductibles.
In a memo, the Board said it has recently been made aware that there may be circumstances where automobile insurers have offered a deductible on DCPD coverage to their commercial customers. It says Subsection 254.1(7) of the Insurance Act allows DCPD deductibles to be offered only on classes prescribed by regulation but to date, no regulations have been made by the Lieutenant-Governor in Council. Therefore, no deductibles are currently permitted to be offered on DCPD coverage for automobile insurance on any class of vehicle.
“Until such time as regulations are made and enacted, the Board has not and will not approve differentials for DCPD deductibles and it is incumbent on insurers to ensure that they are compliant with section 254.1 of Insurance Ac.,” the bulletin said.
“All insurers writing commercial automobile insurance policies in New Brunswick are asked to review their book of business for any possible instances where deductibles may have been offered on DCPD coverage. Insurers are asked to report any such occurrences to the Board and also directly to the Superintendent of Insurance.”
New Brunswick Insurance Board
Attn: Kelly Ferris, Manager Insurance Services
Suite 600 – 55 Union Street
Saint John, NB E2L 5B7
Phone: (506) 643-7710
Fax: (506) 652-5011
Office of the Superintendent of Insurance
Attn: Nola Carr, Deputy Superintendent Department of Justice, Insurance Branch Kings Place
PO Box 6000
Fredericton, NB E3B 5H8
Phone: (506) 444-4824
Fax: (506) 453-7435