The Looming Changes to DCPD

Starting in the New Year, Ontario’s new auto endorsement, OPCF 49 Agreement Not to Recover for Loss or Damage from an Automobile Collision, will allow drivers to opt out of Direct Compensation for Property Damage (DCPD) coverage. While this change could in theory generate savings for consumers, it can come at the expense of their protection. 

This means that if an insured is involved in a collision for which they aren’t at fault or partially at fault, they won’t be able to recover the following items from their insurer: automobile repair, the value of the automobile or its replacement, the loss of use of the automobile, or damage or loss of the contents inside the automobile.

That’s why IBAO has created a new, exclusive training course, 2024 DCPD Changes & Introduction of OPCF 49, that guides brokers through the ins and outs of the new endorsement. The course is available on IBAO’s eLearning Library, My IBAO Learning Path, and is free for IBAO Members.

“Brokers must ensure that they fully explain the benefits and risks of the OPCF 49 to any of their clients who request it,” said IBAO COO Brett Boadway.

She moderates the panel discussion that the course is built on, which includes industry experts Jessica L. Kuredjian, Partner, Cassels; Amber Wright, AVP, Auto Claim, Travelers Canada; and Anne Marie Thomas, Director of Consumer & Industry Relations, Insurance Bureau of Canada.

“Given the premium savings of signing an OPCF 49 could be low, and the risks to the client high, brokers should be vigilant in ensuring they explain the mechanics of the product to clients, outlining potential risks and consequences of signing an OPCF 49 clearly and thoroughly.” 

This endorsement can introduce additional complications that are also covered in the course. For example, although a client could reduce their premium by signing OPCF 49, if the client leases their automobile or their automobile is financed, it’s quite possible that they’d be in breach of their financing or leasing agreement, unless they’ve specifically consulted with their leasing/financing company about it.

“We want brokers to provide impartial but informed advice to protect their clients.” 

Insurers issuing Ontario Automobile Policies (OAP 1) will be required to offer the OPCF 49 effective January 1st.

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