Articles

This particular LAT decision suggests that if applicants do not medically qualify for an IRB, they can still apply for NEB, if not given the option to elect, thus requiring insurers to send out election forms for every claim where IRB may be payable to preclude applicants from claiming both NEB and IRB.

Counsel who act in matters that may be funded by litigation loans will want to be aware of the June 22, 2016 decision of Justice Sloan in this case, in which a litigation lender was found to have breached the Consumer Protection Act, and accordingly was only permitted to recover 5% per annum simple interest, as opposed to the 19.5% to 24% interest compounded monthly that had been set forth in the lending agreements.

Message from the Chair of the OBA Insurance Law Section

This decision highlights the importance of lawyers reviewing the medical records and the medical-legal reports generated during the Applicant’s file, and whether these documents are clear as to why the Applicant is either within or outside the Minor Injury Guideline (MIG). The adjudicator decided that the LAT will not infer information that is not clearly expressed in the medical evidence especially when compelling evidence is required to be discharged from the MIG.

In Ledcor Construction Ltd v Northbridge Indemnity Insurance Co the SCC applied the "faulty workmanship" exclusion in a Builders' Risk policy. The Court held that the exclusion does not preclude coverage "merely because the damage results to that part of the project on which the contractor was working." The decision also establishes that insurance contracts need to be interpreted consistently because they are standard form contracts.

Another successful term for the Insurance Law Section draws to a close, and we welcome our incoming chair, Amanda McBride.

As of January, 2016, there is a conflict of judicial opinion about whether the two-year limitation period in section 18 runs from the date of service of the claim, unaffected by discoverability.

Weather Attribution is a broad term encapsulating many scientific disciplines that seek to ultimately link climate change to specific weather events. As a scientific field, it is rarely seen within litigation matters, but it has manifested itself in the insurance industry, as insurers have found utility in this science for several years now, when dealing with issues related to weather events.

Two cases decided within the last year have confirmed that an insurer that adds itself as a Third Party pursuant to Section 258 (14) of the Insurance Act (the off-coverage insurer) is required to answer questions and disclose information in relation to the insurer’s off-coverage position.

When an organized liquor-filled party takes place on a bus, does responsibility rest on the “party” or on the “bus”?