In his role as a member of the TSSA Boiler and Pressure Vessel advisory council, Ryan Jones, Claims Relationship Manager at RSA Canada, disagrees with some of the changes proposed to the Boilers and Pressure Vessels Regulation. He, along with The Ministry of Government and Consumer Services (MGCS), and the Technical Standards and Safety Authority (TSSA), is eager to hear your opinion on these changes prior to July 4th.
“As the largest direct underwriter of boiler machinery insurance in Canada, RSA continues to support the MGCS and the TSSA in achieving the highest level of public safety possible,” says Jones. “We have no doubt that the current regulation has supported a high level of public safety and are proud to be a part of the safe track record the Boiler and Pressure Vessel Safety Program has achieved under the TSSA’s oversight. However, the TSSA council does not support many of the suggested changes in their entirety.”
What are the key changes?
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Key change |
Jones’ take on the change |
| Upon insurer’s periodic inspection of a boiler or pressure vessel, the owner or operator of the device would be required to apply for authorization from TSSA to operate their device (Certificate of Inspection) with the payment of a fee and a copy of the Record of Inspection.
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Under the new rules proposed by The Ministry of Government and Consumer Services (MGCS), following an inspection, the owner of the boiler or pressure vessel would be required to apply for a Certificate of Inspection (COI) authorization from the Technical Standards and Safety Authority (TSSA) and be forced to pay a new fee of $15. For an operator with 2,000 objects requiring annual COIs, that’s a cost of $30,000 per year. |
| Insurers to submit device inspection information and attest to the accuracy of this information in the form and frequency specified by TSSA.
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Under the current regulation, insurers are required to submit device inspection information to the TSSA within 21 days of an inspection. Under the proposed changes to the regulation, insurers will be required to provide broader criterion and attest to the accuracy of this information in the form and frequency specified by the TSSA. Insurers will be subject to an audit to verify information provided and determine their compliance. |
| Insurers to file information and to attest to the accuracy of that information. Insurers could be subject to an audit by TSSA to verify information provided by insurers as well as determine compliance with regulatory requirements.
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The proposal will increase the TSSA’s regulatory oversight of insurer inspections in Ontario through the development of three new mechanisms: authorization, attestation and audit. It is estimated that these additional mechanisms will cost insurance carriers in the range of $5,000 - $50,000 per audit, a cost that is not currently considered in insurers’ cost modelling. Based on the 138 insurers currently licensed to transact boiler and machinery business under the insurance act, the changes could have a net impact of $690,000 - $6,900,000. |
| Provide flexibility for TSSA to differentiate between high-risk and low-risk piping and fittings based on research and analysis conducted through a standards development organization.
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“The current regulation requires the periodic inspection of piping and fittings “at such intervals as are set out in the code adoption document.” However, the code adoption document (CAD) does not set out any intervals. As a result, there is a lack of clarity regarding the requirement for periodic inspection of piping and fittings. |
| Additional draft regulation proposals to improve the effectiveness of TSSA’s BPV Safety Program.
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“RSA supports some of the administrative changes proposed, however, we do not support the changes around buried water piping rules and insurers being retained to perform periodic inspections on behalf of the insurer of the device.” |
RSA agrees that the boiler and pressure vessel safety program should be supported by the industries it serves. However, Jones is concerned that many of the changes are structured around addressing the operational deficit of Boiler and Pressure Vessel safety program ($1 million average annual deficit ), and that adequate internal cost reviews of the existing TSSA model have not been completed; therefore, operational efficiencies have not been fully realized.
Jones proposed to the TSSA and MGCS a model whereby the Operating Engineers and Boiler and Pressure Vessel safety programs, which have many operational synergies, amalgamate into a signal safety program. It is his belief, based on the information available, that the amalgamation of the two safety programs could increase public safety, awareness and reduce, or even eliminate, the existing deficit, which would limit the financial impacts of the aforementioned fee structure on our clients.
Under the current regulation, insurers are required to submit device inspection information to the TSSA within 21 days of an inspection. Under the proposed changes to the regulation, insurers will be required to provide broader criterion and attest to the accuracy of this information in the form and frequency specified by the TSSA. Insurers will be subject to an audit to verify information provided and determine their compliance.
The proposal will increase the TSSA’s regulatory oversight of insurer inspections in Ontario through the development of three new mechanisms: authorization, attestation and audit. It is estimated that these additional mechanisms will cost insurance carriers in the range of $5,000 - $50,000 per audit, a cost that is not currently considered in insurers’ cost modelling. Based on the 138 insurers currently licensed to transact boiler and machinery business under the insurance act, the changes could have a net impact of $690,000 - $6,900,000.
To share your opinion on the matter, visit Ontario’s Regulatory Registry.
