PART VI AUTOMOBILE INSURANCE
Accidents involving two or more insured automobiles
263 (1) This section applies if, (a)  an automobile or its contents, or both, suffers damage arising directly or indirectly from the use or operation in Ontario of one or more other automobiles; (b)  the automobile that suffers the damage or in respect of which the contents suffer damage is insured under a contract evidenced by a motor vehicle liability policy issued by an insurer that is licensed to undertake automobile insurance in Ontario or that has filed with the Chief Executive Officer, in the form provided by the Chief Executive Officer, an undertaking to be bound by this section; and (c)  at least one other automobile involved in the accident is insured under a contract evidenced by a motor vehicle liability policy issued by an insurer that is licensed to undertake automobile insurance in Ontario or that has filed with the Chief Executive Officer, in the form provided by the Chief Executive Officer, an undertaking to be bound by this section.  1993, c. 10, s. 21 (1); 1997, c. 28, s. 113; 2018, c. 8, Sched. 13, s. 22. Exempt automobiles, undertaking to be bound (1.1) This section applies, with necessary modifications, in respect of an automobile the owner, operator or lessee of which is exempt from the requirement to be insured under the Compulsory Automobile Insurance Act, if the organization that is financially responsible for the damages resulting from the accident involving the automobile files with the Chief Executive Officer an undertaking to be bound by this section.  1997, c. 19, s. 10 (29); 1997, c. 28, s. 114 (2); 2018, c. 8, Sched. 13, s. 22. Damage recovery from insured’s insurer (2) If this section applies, an insured is entitled to recover for the damages to the insured’s automobile and its contents and for loss of use from the insured’s insurer under the coverage described in subsection 239 (1) as though the insured were a third party. R.S.O. 1990, c. I.8, s. 263 (2). Note: On January 1, 2024, the day named by proclamation of the Lieutenant Governor, section 263 of the Act is amended by adding the following subsection: (See: 2020, c. 36, Sched. 22, s. 7 (1)) Same, application of s. 233 (2.1) Despite subsection (6), section 233 applies to claims made under subsection (2). 2020, c. 36, Sched. 22, s. 7 (1). Note: On January 1, 2024, the day named by proclamation of the Lieutenant Governor, section 263 of the Act is amended by adding the following subsections: (See: 2021, c. 40, Sched. 14, s. 4) Same, election not to recover (2.2) An insured may elect, in accordance with the regulations, not to recover damages from the insured’s insurer under subsection (2). 2021, c. 40, Sched. 14, s. 4. Same (2.3) Despite subsection (6), if an insured makes an election under subsection (2.2), (a)  in addition to the restrictions set out in subsection (5), the insured has no right of action under subsection (2) against the insured’s insurer for damages to the insured’s automobile or its contents, or for loss of use; and (b)  the insured’s insurer shall not issue or offer collision or upset coverage, as referred to in the standard policy forms approved by the Chief Executive Officer under subsection 227 (5), to the insured. 2021, c. 40, Sched. 14, s. 4. Fault-based recovery (3) Recovery under subsection (2) shall be based on the degree of fault of the insurer’s insured as determined under the fault determination rules. R.S.O. 1990, c. I.8, s. 263 (3). Dispute resolution (4) An insured may bring an action against the insurer if the insured is not satisfied that the degree of fault established under the fault determination rules accurately reflects the actual degree of fault or the insured is not satisfied with a proposed settlement and the matters in issue shall be determined in accordance with the ordinary rules of law. R.S.O. 1990, c. I.8, s. 263 (4). Restrictions on other recovery (5) If this section applies, (a)  an insured has no right of action against any person involved in the incident other than the insured’s insurer for damages to the insured’s automobile or its contents or for loss of use; (a.1)  an insured has no right of action against a person under an agreement, other than a contract of automobile insurance, in respect of damages to the insured’s automobile or its contents or loss of use, except to the extent that the person is at fault or negligent in respect of those damages or that loss; (b)  an insurer, except as permitted by the regulations, has no right of indemnification from or subrogation against any person for payments made to its insured under this section.  R.S.O. 1990, c. I.8, s. 263 (5); 1996, c. 21, s. 24 (1). Agreement for partial payment (5.1) Nothing in this Part precludes an insurer, in a contract belonging to a class prescribed by the regulations, from agreeing with an insured that, in the event that a claim is made by the insured under this section, the insurer shall pay only, (a)  an agreed portion of the amount that the insured would otherwise be entitled to recover; or (b)  the amount that the insured would otherwise be entitled to recover, reduced by a sum specified in the agreement. 1993, c. 10, s. 21 (2). Application of subs. (5.1) (5.2) Subsection (5.1) does not apply unless, before the insurer enters into the contract referred to in that subsection, the insurer offers to enter into another contract with the prospective insured that does not contain the agreement referred to in that subsection but is identical to the contract referred to in subsection (5.1) in all other respects except for the amount of the premium. 1993, c. 10, s. 21 (2). Mandatory deductible (5.2.1) In the circumstances prescribed by the regulations, a contract belonging to a class prescribed for the purpose of subsection (5.1) shall provide that, in the event that a claim is made by the insured under this section, the insurer shall pay only the amount that the insured would otherwise be entitled to recover, reduced by a sum specified in the contract. 1996, c. 21, s. 24 (2). Application of subs. (5.2) (5.2.2) Subsection (5.2) does not apply to a contract that contains a provision required by subsection (5.2.1). 1996, c. 21, s. 24 (2). Stamping required (5.3) If a contract contains an agreement referred to in subsection (5.1) or a provision required by subsection (5.2.1), the policy shall have printed or stamped on its face in conspicuous type the words “This policy contains a partial payment of recovery clause for property damage” in English or “La présente police comporte une clause de recouvrement partiel en cas de dommages matériels” in French, as may be appropriate.  1993, c. 10, s. 21 (2); 1996, c. 21, s. 24 (3). Other coverages not affected (6) This section does not affect an insured’s right to recover in respect of any physical damage coverage in respect of the insured automobile. R.S.O. 1990, c. I.8, s. 263 (6). Non-application (7) This section does not apply to damages to those contents of an automobile that are being carried for reward. R.S.O. 1990, c. I.8, s. 263 (7). Idem (8) This section does not apply if the damage occurred before the 22nd day of June, 1990. R.S.O. 1990, c. I.8, s. 263 (8). Idem (9) This section does not apply if both automobiles are owned by the same person. R.S.O. 1990, c. I.8, s. 263 (9). Idem (10) This section does not apply to damage to an automobile owned by the insured or to its contents if the damage is caused by the insured while driving another automobile. R.S.O. 1990, c. I.8, s. 263 (10). Section Amendments with date in force (d/m/y) 1993, c. 10, s. 21 (1, 2) - 01/01/1994; 1996, c. 21, s. 24 (1-3) - 01/11/1996; 1997, c. 19, s. 10 (29) - 10/10/1997; 1997, c. 28, ss. 113, 114 (2) - 01/07/1998 2018, c. 8, Sched. 13, s. 22 - 08/06/2019 2020, c. 36, Sched. 22, s. 7 (1) - 01/01/2024; 2020, c. 36, Sched. 22, s. 7 (2) - no effect - see 2021, c. 40, Sched. 14, s. 6 - 09/12/2021 2021, c. 40, Sched. 14, s. 4 - 01/01/2024; 2021, c. 40, Sched. 14, s. 6 - 09/12/2021 263.1 Section Amendments with date in force (d/m/y) 2002, c. 31, s. 10 - See: Table of Public Statute Provisions Repealed Under Section 10.1 of the Legislation Act, 2006 - 31/12/2012 264 Repealed:  1996, c. 21, s. 25. Section Amendments with date in force (d/m/y) 1996, c. 21, s. 25 - 01/11/1996 Limited Accident Insurances