August 21st, 2014 2:11 PM
This is a tricky area for families. Here are answers regarding driving/insurance in relation to dementia. These answers are from MARD (Medically at Risk Driver Centre) and have been verified by the Insurance Bureau of Canada:
1. Am I obligated to report my dementia diagnosis to my insurance company?
Answer:
Individuals should check their automobile insurance policy. In Alberta, the Statutory Conditions of the Automobile Policy under Section 1 – Material Change in Risk state:
“(1) The insured named in this contract must promptly notify the insurer of its agent in writing, of any change in the risk material to the contract and within the insured’s knowledge.” (p. 10)
http://www.rbcinsurance.com/car-insurance/pdf/auto-policy-ab.pdf
Medical conditions can affect 'material change in risk’. As such, it is recommended that the insurance company be notified that the insured has been diagnosed with dementia.
2. Will my insurance company continue to cover me if I report a dementia diagnosis to them?
Answer:
If the vehicle in question is a private passenger vehicle, the insurer will not cancel the insurance. They may make changes to the collision or comprehensive or specified perils sections but the liability and accident benefits will remain in place. If the vehicle is a recreational vehicle or commercial vehicle, there is a possibility they may take action including not renewing or cancelling a policy.
3. If I do not report my dementia diagnosis to my insurance company and I get in an accident, will I be held liable?
Answer:
If the condition is not reported, it would be considered a material change in risk and the consequences of that could be that the individual would become personally responsible for all damages if they were at fault.
4. I am worried about someone’s driving – what can I do to see if they are still safe on the road?
Answer:
If the person that you are worried about is a relative, talk to the person's family physician about your concerns. If the person is not a relative, you can report your concerns, in confidence, to Driver Fitness and Monitoring. The link to the reporting form is http://www.transportation.alberta.ca/2561.htm