BCSC finds innocent insured is entitled to coverage following fire damage to leased truck – Judge cautions insurers to avoid obscure legal terms or concepts beyond the understanding of the ordinary insured

Vehicle damage arising from a lessee’s arson does not fall within the conversion exclusion clause in Division 5 of the ICBC Autoplan Optional Policy, and an innocent lessor may accordingly be entitled to coverage. CIT Financial Ltd. v. Insurance Corporation of British Columbia, 2017 BCJ No 753, 2017 BCSC 641, British Columbia Supreme Court, April 20, 2017, N. Kent ...

Ontario judge dismisses liability insurance claim determining that possessory rights to chattels do not constitute property

10. February 2017 0
Possessory rights to chattels do not constitute property within the meaning of section 132(1), R.S.O. 1990, c. I.8. Benedict v. Continental Casualty Co., [2016] O.J. No. 6016, 2016 ONSC 7205, Ontario Superior Court of Justice, November 23, 2016, F. Kristjanson J. This action arose out of a coverage dispute triggered by an underlying action for ...

Automobile insurer who assumes liability under contract of insurance for storage fees is subrogated to the rights of its insured

10. February 2017 0
An automobile insurer that provides coverage for vehicle storage fees is a “person lawfully entitled” to apply for relief under section 24 of the Ontario Repair and Storage Liens Act, R.S.O. 1990, c. R.25. 2237466 Ontario Inc. (c.o.b. 409 Collision Centre (2011)) v. Intact Insurance, [2016] O.J. No. 6336, 2016 ONSC 7711, Ontario Superior Court ...

Court allowed adding plaintiff’s insurer as a party where tortfeasor’s insurance limits were likely insufficient

18. August 2016 0
A plaintiff’s insurer may be added as a party to a tort action where the tortfeasor’s insurance limits will likely be insufficient, and the plaintiff intends to seek compensation under its insurer’s underinsured liability coverage. MacPherson v. White, [2016] B.C.J. No 1332, 2016 BCSC 1151, British Columbia Supreme Court, June 22, 2016, P.J. Pearlman J. This action arose out of ...

Taking renters constituted a material change in risk voiding coverage

18. August 2016 0
Where an insurance application specifically asks whether an insured property will have renters or tenants, and the insured answers ‘no,’ an insured who subsequently rents out that property may void their insurance coverage if they do not declare this change upon renewal. Zheng v. John Galon Insurance Services Ltd., [2016] S.J. No. 352, 2016 SKPC 90, Saskatchewan Provincial ...

Water seeping through foundation walls was excluded under insured’s “water escape” coverage

Water damage caused by water seeping through the foundational walls of an insured’s property was outside the scope of the insured’s “water escape” coverage, as being “ground water” or “surface water”. It did not matter whether this water seepage happened slowly or suddenly. Hojjatian v. Intact Insurance Co., [2016] O.J. No. 1834, 2016 ONSC 2318, Ontario Superior ...

Uninsured motorist protection under Ontario Insurance Act is distinct from optional Family Protection Endorsement for inadequately insured motorist

Optional uninsured motorist coverage is distinct from the uninsured motorist protection provided for under the Ontario Insurance Act. The latter is a creature of statute, which excludes coverage for uninsured vehicles owned by an insured or their spouse. The former is subject to the principles of policy interpretation and may provide coverage for an uninsured ...

Damages for accelerated depreciation from tortfeasor are not recoverable under Ontario’s no-fault insurance scheme

23. February 2016 0
Ontario’s no-fault insurance scheme precludes a vehicle owner from recovering damages for accelerated depreciation from the tortfeasor who is responsible for damaging the said vehicle. A party cannot rely on the law of bailment to circumvent the no-fault scheme where the true cause of action is in tort. Keyhani v. Downsview Chrysler Toronto, [2016] O.J. No. ...