PACICC covers the claims of policyholders under most policies issued by property and casualty insurance (P&C) companies who are Members of PACICC.
All P&C insurers licensed in a province or territory of Canada are required to be members of a guarantee fund. Almost all companies which insure the homes, cars, businesses and other property of Canadian policyholders are Members of PACICC. There are some exceptions, including some mutual insurers in Ontario and Quebec, as well as insurers licensed to sell only one or more of the following – automobile insurance in Manitoba, Saskatchewan or British Columbia. A full list of PACICC Members can be found here.
PACICC protection is automatic—there are no additional fees required from policyholders. Our coverage extends to policies representing more than 95 percent of all P&C premiums paid in Canada.
Two Types of Protection
PACICC protection is based on the wording and deductibles of policies purchased from our Member Insurers. Policy deductibles are applied to the total amount of the insured loss, as prescribed in the policy. PACICC offers two types of protection for Canadian policyholders:
Refunding Premiums Paid in Advance
PACICC will refund 70 percent of the unearned (unexpired) portion of premiums paid in advance (to a maximum of $2,500). The maximum refund is therefore $1,750 per policy.
Policyholders must assign their rights against the estate to PACICC in order to receive compensation from PACICC. PACICC protection is based on the policy wording and deductibles purchased by an insurance consumer from a Member Insurer. PACICC will pay the valid claims of policyholders up to the established policy limit, noted below. These limits are per-policy—so if your policy contains multiple types of the insurance coverage listed below, the single limit applies.
Policies Protected by PACICC and Their Benefit Limits
|Types of Insurance Policies Covered by PACICC||Valid Claim Coverage Limit (Per Policy)|
|Automobile (Excludes Mandatory Automobile Insurance sold in B.C., Saskatchewan and Manitoba)||$400,000|
|Optional Automobile Insurance in B.C. (Includes policies sold by Government-owned insurers in B.C.)||$60,000|
|Commercial Liability (unless specifically excluded)||$400,000|
|Directors and Officers Liability (only for not-for-profit organizations)||$400,000|
|Professional Liability (Professional Medical only)||$400,000|
|Errors and Omission (for non-professionals)||$400,000|
|Accident and Sickness (if sold by a PACICC Member)||$400,000|
|Boiler and Machinery||$400,000|
Insurance Policies Not Protected
PACICC does not provide policyholder protection for the following types of insurance policies:
- Accident and Sickness (if sold by life insurers who are Members of Assuris)
- Automobile insurance sold by Government-owned insurers in B.C., Manitoba and Saskatchewan
- Directors and Officers Liability (PACICC does cover not-for-profit organizations)
- Home Warranty (if sold by a non-Member of PACICC)
- Professional Liability (PACICC does cover Professional Medical)
If you still require more information, please consult our FAQs here.