Insurers for parties on whom minor was equally financially dependent had priority for payment of SABS to minor injured in MVA

Insurers for parties on whom minor was equally financially dependent had priority for payment of SABS to minor injured in MVA.

Insurance law – Statutory Accident Benefits Schedule – Priority coverage – Dependent relative

Gore Mutual Insurance Co. v. Dominion of Canada General Insurance Co., [2024] O.J. No. 4229, Ontario Superior Court of Justice, September 24, 2024, E.M. Morgan J.

This decision involved a three-way priority dispute between insurers in respect of accident benefits payable under the Statutory Accident Benefits Schedule in Ontario. The insured was 17 years old at the time of the motor vehicle accident in question. The dispute related to which insurer was required to pay her benefits. Three insurers were involved. The insurer which issued a policy of insurance to the insured’s father, the insurer which issued a policy of insurance to the insured’s mother, and the insurer which issued a policy of insurance to the driver of the vehicle in which the insured was travelling at the time of the accident.

The interpretation issue depended on the application of section 268(2) of the Insurance Act which provides that the insurer for the party on whom the insured was financially dependent would have priority.

The question was initially addressed by an arbitrator, who concluded the insurers which insured the insured’s parents were liable because the insured was equally dependent on them for financial support. These insurers appealed.

The court found no error in the arbitrator’s decision and the appeal was dismissed.

This case was digested by Cameron B. Elder and edited by Steven W. Abramson of Harper Grey LLP and first published in the LexisNexis® Harper Grey Insurance Law Netletter and the Harper Grey Insurance Law Newsletter. If you would like to discuss this case further, please feel free to contact them directly at [email protected] or [email protected].