PACICC Protects

In the unlikely event that your home, car or business insurance company fails, the Property and Casualty Insurance Compensation Corporation (PACICC) is there to protect you.

Although insurance companies rarely fail, they can and have. That’s why those companies that sell insurance for homes, cars and businesses in Canada joined forces to create and fund PACICC as your protection if an insurer becomes insolvent. It's sort of like insurance for your insurance, but you don't have to apply for this protection—it's extended automatically.

If your insurance company fails, you will be advised of the need to replace your policies, so you will still have insurance protection. This must be done within 45 days of the date of the court order declaring the company insolvent.

The court-appointed liquidator will write to all policyholders concerning claim procedures. PACICC coverage is available for losses that occurred on or before the date of the insolvency, and up to 45 days afterward. Insurance claims should be submitted directly to the liquidator. Legitimate claims that are covered by PACICC will then be paid by the liquidator using funds provided by PACICC.

PACICC will pay up to a maximum of $250,000 to settle loss claims arising from a single occurrence. If your claim exceeds $250,000, you may eventually be reimbursed for the rest of the claim. The liquidator must first ensure that everyone who is entitled to a claim payment gets a payment. At the end of the process of paying the claims, if there’s money left over within the insolvent insurance company, these funds will be made available by the liquidator.

PACICC will also refund 70% of the unexpired portion of your premium to a maximum of $700 per policy, applicable from the date of the court order declaring the insurer to be insolvent.
So you can rest assured knowing that your policy and premium are protected in the unlikely event that your insurance company becomes insolvent. After all, insurance is supposed to bring you peace of mind. Even if all else fails, PACICC won't!