Background. In 2022, vehicles equipped with SAE Level 3 autonomous technology will be on Canada's roads. Level 3 technology is conditional automation, where the vehicle drives itself under limited circumstances but the human driver must be ready to resume driving at any time. Drivers will be allowed to use the technology, but the question remains: when something goes wrong, whose responsibility is it?
Current legislation, which is different for each province, doesn't adequately consider accidents involving Level 3 automation. The Insurance Bureau of Canada recommends a single policy approach, where one policy insures both driver negligence and the automated technology, but each province and territory has jurisdiction to develop its own highway traffic laws and insurance regime. This could leave Canada with a confusing patchwork of motor vehicle insurance regulations and liability across the country.
Impact. When technology is in use before regulatory support is in place, everyone is impacted. Regulators will likely scramble to update provincial traffic and insurance acts, with pressure for quick passage into law — meaning national harmonization is unlikely. Insurers may take off cover positions, resulting in uninsured losses for owners and operators of vehicles. Manufacturers of vehicles and autonomous technology may find themselves subject to increasing numbers of claims from individuals whose insurance doesn't cover losses following an accident.
Top tip. Individual drivers who plan to use Level 3 automation can ask their insurance provider what is covered and who is liable in different scenarios, but without regulation there is little that insurers can do on a case-by-case basis to clarify policy wording. Fleet owners using Level 3 autonomous technology, however, may have power that individual vehicle owners do not. They should seek clarity in their policies. For example, they may wish to ask their insurer to sign a certificate declaring vehicles are insured whether they are in automated mode or not. Changes in technology happen quickly, stay current by signing up for The Sensor, BLG's autonomous vehicle newsletter.
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