Insurance Resources

Texting while driving remains a Number 1 concern for Canadians: CAA

Texting while driving is the Number 1 road safety concern of Quebecers and Canadians, according to a Canadian Automobile Association (CAA) poll. “Although it may seem obvious to say that texting while driving is dangerous, far too many drivers are ready to run the very potent risk of causing an accident,” commented Yvon Lapointe, director of traffic safety for CAA-Québec. “According to studies on the subject, it seems that the risk of being implicated in a serious or fatal accident is 23 times likelier for drivers using text messaging while driving.”

In a survey commissioned by CAA-Manitoba, 99.4 % of 11,000 survey respondents said since Manitoba’s cell phone ban has been in effect, they have still seen motorists talking or texting. More than half of respondents said they see motorists violating the law at least once every day.

Fifty-eight per cent of respondents said they believed demerit points should be added to the $199.98 fine under Manitoba law.

Reprinted with permission from Canadian Underwriter magazine Insurance Headline News www.canadianunderwriter.ca

Backflow valves highly effective in reducing sewer backup damage

Backflow valves are 85% effective in eliminating sewer backup, according to Galen Heinrichs, stormwater utility manager with the City of Saskatoon. Moreover, in that 15% of instances in which a home experienced some sewer backup despite having a backflow valve, the backflow valve was nevertheless 96% effective in reducing damage from the event, said Heinrich.

Heinrich spoke at the Institute for Catastrophic Loss Reduction’s Basement Flooding Symposium held May 26 in Toronto. Beginning in 2003, the City of Saskatoon implemented a bylaw requiring all new homes to have a backwater valve. Around the same time, the city implemented a flood protection program to help mitigate basement flooding and sewer-backup issues in high-risk homes. Homes deemed to be at risk were given an opportunity to upgrade their plumbing with a sump pit and a backwater valve; the city reimbursed the homeowner 100% of the cost. The program was offered three times. In 2005 and 2007, the city paid a maximum reimbursement cost of $2,500. In 2010, the limit was increased to $3,000.

Roughly 50% of the at-risk homes participated in the program, which accounted for roughly 700 homes, Heinrichs said. When Heinrich’s department conducted a survey to determine why the other 50% had not participated, there was no overarching reason. Individual responses included that the backup was a random event, the problem rested with the city and not with the homeowner, and that the homeowner did not want to deal with the mess that would result from installation.

Reprinted with permission from Canadian Underwriter magazine Insurance Headline News www.canadianunderwriter.ca

IBAO cautions property owners of spring melt

The Insurance Brokers Association of Ontario (IBAO) are reminding consumers to take the necessary precautions to protect their homes and belongings from water damage during the spring melt.  The combination of the melting snow and the influx of precipitation over the past days has caused water levels to reach unprecedented highs, an IBAO release says. The change in climate is scheduled to continue in the upcoming weeks, and it is important that individuals are aware of the potential risks of water damage and take the necessary precautions to protect themselves and their homes.

IBAO suggested the following steps to prepare properties for potential water damage:

• prepare your home for a possible extended vacancy and collect necessary personal items required if evacuated;
• remove any valuable items from the basement and lower level areas;
• during a flood, shut off electricity, furnaces and the outside gas valves; and
• create an emergency kit and keep it in an easy to reach place.

Reprinted with permission from Canadian Underwriter magazine Insurance Headline News www.canadianunderwriter.ca

Pulling a Trailer Safely

Trailers come in many shapes and sizes. Pulling a trailer requires extra care and attention. A trailer puts extra weight on your vehicle and increases the space you need to drive and stop safely. Trailer safety involves some simple and important rules.

A trailer must be registered and licensed before it can be used on the road.

Before using your trailer, make sure it is in safe operating condition. Inspect the lights, tires, brakes (if equipped), bearings, safety chains and hitch.. The law requires brakes on trailers that weigh 1360 kg (3000 lb) or more.

Use the correct class of trailer hitch on your vehicle. (Class I — up to 2000 lb; Class II — up to 3500 lb; Class III — up to 5000 lb; Class IV — 5000 to 10000 lb) Repair or replace broken or worn out hitches. Contact a trailer hitch retailer for more information.

Thinking of buying a trailer? Consider the size, power and condition of your vehicle. Trailer dealers can help match your vehicle with the right type of trailer and the proper hitch system.

You must have two separate means of attachment between your vehicle and the trailer. Safety chains should be crossed under the tongue to prevent the tongue from dropping to the road should the primary hitch accidentally disconnect. It is recommended that chain hooks have latches or devices that prevent accidental disconnect. The breaking strength of each chain should equal the gross weight of the towed trailer. (See: Farm Vehicles and Equipment and The Highway Traffic Act, Appendix A – chain grades charts.) Chains are required for goose neck type trailers that utilize a ball and socket type hitch. Fifth-wheel type hitches that have safety latches do not require safety chains.

When attaching the trailer to a vehicle, make sure it is hitched securely. The trailer tongue should be snug on the ball when locked. Never overload the trailer. Overloading or poor load distribution can cause serious swaying and separation when driving and possible tire, wheel bearing and axle failure. Also, the law requires that loose objects be covered with a tarp and everything be strapped down so nothing can bounce or fly off.

Adjust vehicle mirrors to clearly see traffic approaching from behind. Keep the load low. Use extension mirrors if necessary.

It is against the law to tow more than one trailer behind your vehicle unless using a commercial vehicle. You cannot carry people in a house or boat trailer.

You cannot accelerate as fast when towing a trailer, or stop as quickly. Maintain a speed that avoids sudden stops and slow-downs. Be alert, increase your following distance, keep out of fast lanes of traffic and always use your signals when passing or turning.

Road Safety. It starts with you.

© Queen’s Printer for Ontario, 2009

Ontario Auto Reform – Bill 198

Effective September 1, 2010, Bill 198 in Ontario came into effect to address the rising cost of claims. Many of the changes were specific to accident benefits.

• Medical and rehabilitation expenses has been reduced from $100,000 to $50,000
• Attendant care expenses has been reduced from $76,000 to $36,000
• Cargiver, housekeeping and home maintenance expenses are no longer available for non-catastrophic injuries but are available for catastrophic injuries only

Although some coverages have been reduced, they can be increased for an additional premium. Below is a summary of the standard and optional accident benefits coverage:

Protect Your Condo From Water Damage

Condo living is the ideal way for many Canadians to own a home – whether you’re a first-time homebuyer or looking to downsize.

Based on in-depth discussions with customers and brokers, we know that some of the most common questions condo owners have are about water damage. So this guide has been developed for condo buyers or owners, with useful information, tips and important questions for a better understanding of the subject.

Before you buy…

It’s important for you to understand how much protection you have under your condo corporation’s insurance policy and your own policy. Here are some questions you can ask your real estate salesperson, lawyer or property manager:

• What does the corporation’s insurance cover and, more importantly, what does it not cover?
• Does the corporation’s policy cover just the structure and common areas of your building or complex, or more? (e.g. damage to your unit’s walls)
• If there is major damage to your building, is it possible that you would have to make an additional contribution to cover the deductible of the condo corporation’s insurance policy?
• What is the deductible in the corporation’s insurance policy?
• Are you responsible for the full cost of repairing damage to another unit or for the full deductible on the corporation’s policy if, for instance, your dishwasher leaked or your bathtub overflowed and ruined the ceiling and contents of the condo below?
• How is a “standard unit” defined by your condo corporation? Does it cover things like fixtures, ceilings and floors?

Once you’ve moved in…

• in most cases, you are responsible for insuring any improvements within your unit, as well as contents such as furniture, clothes and electronics.
• In the event of a water leak in the building, who is the condo contact person and what phone number should you call?

You may also want to ask your condo board proactive questions which can help everyone in the building to better handle water damage related issues, such as:

• Has an emergency plan been prepared?
• Would it be worthwhile to do a risk management assessment for the building or complex?
• Does the building’s management routinely inform all on-call staff regarding the location(s) of the main water shut-off(s)?

Water damage prevention checklist

• Contact a professional when your plumbing needs repair or replacement.
• Avoid distractions to prevent water overflows.
• Make sure your washing machine is shut off when not in use and check that your washer’s discharge hose is fastened firmly in place.
• Don’t turn on your dishwasher and leave your unit while it is still running.
• Garbage can clog your toilets, so be sure you never dispose of waste such as kitty litter or grease in them.
• Drop some food colouring into the toilet tank to check for leaks – if the colouring appears in the bowl, there’s a leak.
• Ensure the toilet is not running whenever you leave your home.
• Leave your key with your building security office or ask a trusted neighbour to check your home every few days when you are away.

In the event of a water leak

• When a leak or burst pipe occurs, quick response is essential. Call the emergency phone number to inform your building management team even if it’s 3:00 a.m., and have a professional contractor come in immediately.
• Fast and proper water removal can help minimize your losses and prevent mold.
• Do not touch electrical wires, appliances or devices.
• You will need an inventory list separating damaged property from undamaged property for filing a claim.
• Take photographs of your damaged property. If the property is covered, RSA will also reimburse you for the cost of developing the photos.
• Keep your receipts for any cleanup costs incurred (e.g. wet/dry vacuum rentals, cleaning supplies, etc).

This article is for informational purposes only and is the property of Royal & Sun Alliance.

Boating Safety Pre-Departure Checklist

Be Prepared for the Unexpected – Check This List Before Every Trip

Lifejackets – Wear Them!

• Carry a Canadian-approved lifejacket for everyone on board.
• Make sure they are in good condition (check the zippers, buckles, fabric, seams, etc.).
• Check that they are properly sized to fit each person on board.

Operator Competency – Are You Ready to Head Out on the Water?

• Take a boating safety course.
• Keep your Pleasure Craft Operator Card or other proof of competency on board.

  

Weather – Check and Monitor the Marine Weather Forecast

Sail Plan – File Your Plan Before Heading Out

• Tell a person you trust where you are going and when you will be back.

Safety Equipment – Required by Law and Essential for Safety

• Make sure all equipment is on board, in good working order and easy to reach.
• Carry a first aid kit, basic tools and spare parts.

Charts, Compass and Local Hazards – Know Where You Are at All Times

• Make sure you are aware of all local hazards, water levels and tides.

Fuel – Check Your Tank and Remember: 1/3 to go, 1/3 to return, 1/3 reserve

Boat Condition – Should Your Boat Leave the Dock?

• Check the hull for cracks or other damage.
• Check the electrical, fuel, propulsion and cooling systems.
• Make sure the throttle and steering work well.
• Check the oil.
• Check all hoses and lines for leaks or cracks and replace if necessary.
• Make sure all clamps and belts are secure and in good shape.
• Inspect, clean and replace spark plugs if necessary.
• Check and change oil and water filters if needed.
• Check the battery’s charge.
• Make sure the drainage plug is in place.
• Carry spare plugs for all through hull fittings.
• Make sure the load on your boat (gear and occupants) is well distributed.
• Run the blowers for four minutes before starting the engine(s) – check for airflow.

Safety Briefing – You Are Legally Responsible for Your Guests

• Show everyone where the safety equipment is located and how to use it.
• Make sure the communication equipment works and everyone can use it.

Transport Canada Office of Boating Safety
Copyright Her Majesty the Queen in Right of Canada, represented by the Minister of Transport, 2007

Travel Insurance – The best way to handle H1N1 related trip cancellations

The Public Health Agency of Canada has provided an important guidance on how to reduce the spread of the H1N1 flu virus on planes, trains, ferries and inter-city buses.

“Everyone has a role to play in reducing the spread of the H1N1 flu virus,” said Chief Public Health Officer, Dr. David Butler-Jones. “If you are sick you should postpone your travel plans until you feel well enough to participate fully in all regular activities.”

Guideline recommendations include:

• passengers and crew members should stay home if they are sick;/li>
• travel companies, airlines, bus lines and others who operate public conveyances may wish to develop policies that facilitate the easy re-booking of travel due to illness, if such policies do not already exist;
• operators should consider posting preventive measure signs advising travellers to wash their hands frequently with soap and water or alcohol-based sanitizer, and to cough and sneeze into arms, and not their hands;
• travel companies should ensure that facilities for hand washing are readily available for passengers;
• regular cleaning of common surfaces in transportation vehicles according to cleaning and disinfection procedures developed by Health Canada;
• crew members should avoid using gloves, masks, facemasks, and eye protection in most situations.;

“You should always have travel insurance — and H1N1 is no different than anything else,” Andrew Hopkyns, director of business development at AMA Travel, said to Reuters, published on canada.com. “Travel insurance remains the best way for consumers to protect their financial and health interests,” said FlightNetwork.com president and CEO Naman Budhdeo. “Considering that travel insurance covers injury, cancellation due to illness or any travel advisories against a destination and is available at a fraction of the cost of your trip, it’s the best way to protect you and your family.” Many insurance plans provide cancellation options as well as medical coverage in the event a client falls ill while away from home.

Public Health Agency Press Release: http://www.phac-aspc.gc.ca/media/nr-rp/2009/2009_1028-eng.php
Public Health Agency Guidance Document: http://www.phac-aspc.gc.ca/alert-alerte/h1n1/conveyances-transport-eng.php
Travel Insurance Centre: http://travel.insurancebroker.ca/

Steer clear of cell phones – How taking a call while driving could raise your rates

First, Newfoundland and Labrador did it, followed by both Nova Scotia and Quebec. The trend to ban cell phones and hand-held devices while driving continues to make its move westward in the fall of 2009. Ontario’s Bill 118 prohibits taking or making calls while driving (along with using other hand-held or entertainment devices).

What will be banned?

According to Ontario’s Bill 118, the following is not allowed unless the vehicle is pulled off the roadway (not impeding traffic) or is legally parked:

• Using hand-held wireless communications devices such as cell phones and smartphones
• Using hand-held electronic entertainment devices such as iPods, MP3 players or portable games
• Texting and emailing

The Bill also prohibits display screens if they are visible to the driver and are unrelated to the driving task (like DVD players and laptops).

What will be allowed?

Like everything else, there are a few exceptions. For example:

• Calls to 9-1-1
• Using hands-free wireless communications devices with an earpiece or Bluetooth device
• The use of hand-held devices by emergency services personnel in the course of the normal work duties
• Viewing display screens of
  • devices that provide GPS information in a hands-free mode
  • collision avoidance systems
  • an instrument, gauge or system used to provide information regarding the status of the motor vehicle’s various systems
  • logistical transportation tracking devices used for commericial vehicles

What does it mean?

When Bill 118 comes into effect, drivers who text, type, email, dial or chat using a hand-held device could face a fine of up to $500.

Make note however, that hands-free devices haven’t escaped notice. If while using a hands-free device you place others at risk, you can be charged with careless driving and face fines of up to $1,000 and get six demerit points. A driver can also receive possible jail time and in some cases a licence suspsension of up to two years.

Still think taking that call is worth it?

The scenario: With the help of Kanetix.ca‘s auto insurance quote comparison service, we can create a scenario to see how a driver’s car insurance rate might be affected.

Let’s say you’re a 35-year old driver in Toronto cruising around in your 2-year old Toyota Corolla when you’re pulled over by the police for chatting on the phone. Up until now, your driving record has been spotless, but with your upcoming auto insurance renewal you want to know what you might be in for. So you enter your driving details into the Kanetix.ca auto insurance quote comparison service with what will presumably be considered a “minor” ticket (although the $500 fine is anything but minor to your bank account.) Then you modify your information to include your most accurate and up-to-date information which unfortunately now includes a ticket.

The results part I: Most of the quotes you obtained after including your new ticket are now higher than those great rates you saw from the 11 insurance companies that provided you a quote the first time around. In fact, the lowest quote with the ticket is 6.1 per cent higher than the lowest one you got with your previously spotless record!

Ouch. That’s one expensive phone call.

Now, let’s see what happens if you’re charged and convicted with careless driving while using your hands-free device because it’s determined that you placed others at risk.

The results part II: Compared to your once clean driving record, the best quote you get is now 383 per cent higher. Surely, no phone call is worth this price tag.

Don’t be a “chatty Cathy”

As your driving instructor used to say, keep your eyes on the road and your hands on the wheel. Of course nowadays they might add, “and let it go to your voicemail”.

Give the Kanetix.ca auto insurance quote comparison service a try to see how much a phone call might end up costing you. Visit www.kanetix.ca today to compare. It’s free, quick and anonymous, and allows everyone to see how much their actions might cost.

Looking for more articles on cars, driving safety and your insurance?

• Read: Accident prone: When accidents happen
• Read: Seat belt use and how it can affect your car insurance premium
• Read: Driven to distraction

Copyright © Since 1999 Kanetix Ltd. (www.kanetix.ca). Reprinted with permission of Kanetix Ltd. All reprint rights reserved.

SR&ED Tax Incentive Program – A War Chest for Small and Mid-size Businesses

The ongoing economic recession and environmental concerns – these two issues make it more challenging for small and mid-size businesses in Canada not only to succeed, but in many cases to survive.

Did you realize that the Government of Canada developed and implemented a unique program to help small and mid-size businesses operate successfully?

The SR&ED tax incentive program is a great “war chest” resource, especially during the current economic downturn.

Each year, the SR&ED program provides over $4 billion in refunds and tax credits to over 18,000 claimants. Of these, approximately 75% are small businesses.

Naturally, there are questions you might be asking yourself now. Some of those could be:

Your Question: What is the SR&ED program?

Our Answer: The Scientific Research & Experimental Development (SR&ED) program is a Canada Revenue Agency (CRA) initiative that provides incentives in the form of refunds and tax credits to Canadian businesses of all sizes, and in all sectors for R&D conducted in Canada.

Your Question: How does my business benefit from this program?

 Our Answer: The SR&ED program helps you to:

- fund technological and environmental advances that keep your company competitive: http://www.sredunlimited.com/environment.html
- maximize the return on your investment for the above initiatives
- better position your company for future R&D and experimental projects

Your Question: How much do I get?

Our Answer: Typically, SR&ED refunds range between $20,000 and $500,000.

Here is an example: Assuming your company spent $ 100,000 on salaries and $ 60,000 on consulting fees, and 75 percent of the labour and consulting fee was attributed as Experimental Development expenses, your claim size is as follows:

100,000×0.75×0.685 + 60,000×0.75×0.415 = $ 70,050

Have a look at some case studies here: http://www.sredunlimited.com/testimonials.html

Now it’s our turn to ask you: Are you interested in getting $20,000- $500,000?

If yes, do you qualify for the SR&ED refund?

To qualify for the refund, you must:

- be an incorporated Canadian company
- have a payroll (the salary paid through T4), or consulting fees
- have production (it can be anything — software development, bakery, printing, metal forming, chemical manufacturing, etc.)

To determine if you qualify for an SR&ED refund, contact us: http://www.sredunlimited.com/contact.html

Author: Dmitry Brusilovsky
Founder & Technical Director at SRED Unlimited
LinkedIn profile: http://www.linkedin.com/pub/dmitry-brusilovsky/1/68/3bb
Follow SRED Unlimited on Twitter: http://twitter.com/SREDUnlimited