The Township of Lake of Bays has revised its road licensing policies after public backlash over high insurance requirements and fees.
The township council repealed its previous Roads Licensing Agreement (RLA), eliminating insurance mandates for existing roads while maintaining coverage requirements for road access.
The RLA, introduced to regulate access and maintenance of unassumed road allowances, became controversial in 2023 when residents of Hammond Road were informed they needed $5-million liability insurance policies to maintain driveways crossing township land.
The sudden requirement, coupled with licensing fees, led to frustration among property owners, who argued the financial burden was excessive and unnecessary. Township officials defended the policy as a necessary measure to protect against liability risks.
As opposition grew, the township placed a 180-day moratorium on the policy in August 2024 to assess public concerns. Mayor Terry Glover later acknowledged that insurance costs and legal complexities were major points of contention, as many residents struggled to obtain affordable coverage. Some property owners also questioned whether the township had the legal authority to impose such insurance requirements.
In January 2025, residents Andrew Mullins and Brigitte Lavoie filed a legal challenge, arguing that the bylaw unfairly shifted financial and legal responsibility to homeowners. The case was set for an April court date, but before it proceeded, the township repealed the bylaw on January 16 and introduced a revised policy.
The new rules removed insurance requirements for existing roads while maintaining coverage mandates for new construction. Glover apologized for the disruption caused by the previous policy, and the council opened the changes to public feedback.
On February 11, the council formally repealed the RLA and adopted a new bylaw that limits insurance requirements to road access during construction. The township also committed to reimbursing residents who had already paid for surveys or other costs under the previous policy.
Further changes were made on March 18, when the township adjusted its road purchasing policy, lifting restrictions and reducing acquisition fees. By lowering financial barriers and addressing insurance concerns, the township aims to balance liability protection with the needs of property owners.
