We are all aware of the new trend toward Usage-Based Insurance
Pricing or UBIP. UBIP technologies are capable of
collecting detailed information about where, how and when
vehicles are driven. Although the technology does not currently
have the capability to identify who is driving a vehicle at any
particular time, in many circumstances ie. where a vehicle has only
one listed driver, the data collected by the device may reasonably
be assumed to be about that individual The data collected is
personal information as defined in the Personal Information Protection and Electronic
Documents Act (PIPEDA). The Financial Services Commission of
Ontario, has issued a Bulletin on USBIP which, among other things,
addresses privacy issues raised by this technology. The Bulletin
makes it clear that insurers are responsible for ensuring that any
UBIP that they roll out is in compliance with PIPEDA.
Some components of compliance emphasized by the Financial
Services Commission are consent by the insured, voluntary
enrollment, and full disclosure of how the information collected
will be used and disclosed by the insurer or by any third party
provider of the service to the insurer. Specifically, the Bulletin
Prior to enrollment, insurers need to inform consumers what
personal information is being collected, who may use or have access
to the information, how the information is being used, under what
circumstances the information will or could be disclosed to other
parties, and what their rights are with respect to the information.
Consumers should also be made aware of, and given the opportunity
to give or withhold consent to, any relevant changes to what or how
personal information is collected, used or disclosed.
Any personal information collected through a UBIP program,
or its accompanying devices or software, should not be disclosed to
any other party unless expressly consented to by the person or as
required by law.
In addition, enrolment in a SBIP program cannot be tied to other
programs such as marketing, vehicle location services or assistance
in emergency situations. Insurers cannot require customers to
consent to the collection, use of disclosure of information beyond
that required by the UBIP program. Consent should be
"opt-in" not "opt-out" for any of these
additional services or usages.
The Bulletin also reminds insurers of their obligations
regarding data accuracy, security and storage.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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