Motorists may soon not need to bring proof of their vehicle being insured; considerations are being made to switch from requiring drivers to carry a motor vehicle liability insurance card, to an electronic alternative.

The Canadian Council of Insurance Regulators (CCIR) recently announced that it has approved a plan to introduce an electronic option for proof of auto insurance. The agency hopes to implement this new system by the first half of 2017.

Although further details on the plan have yet to be confirmed, Lexology reported that the new system could permit insureds to display their liability insurance card on a smart phone or similar device. The new system could possibly even allow insureds to use a printed copy of an electronic version of their proof, sent via email.

This system is not new; 46 jurisdictions in the US have permitted the use of electronic insurance proofs. Although the system being used in the US is far from perfect, the CCIR hopes to use the lessons learned by their American counterparts to adjust their version of electronic insurance proofs.

In an advisory report proposing the new system, the CCIR ponders on the challenges of implementing a system for electronic insurance proofs. Two issues, in particular, were identified: privacy and liability. For the first issue, the agency considered what safeguards should be in place to prevent police officers, in possession of a motorist’s mobile device to check insurance proof, from accessing other personal information. For the second issue, the CCIR deliberated over the extent of an officer’s liability if the insured’s device is damaged while in the officer’s possession.


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