Court declines to interfere with arbitrator’s decision regarding reimbursement of accident benefits

Court declines to interfere with arbitrator’s decision regarding reimbursement of accident benefits.

Insurance law – Automobile insurance – Uninsured motorist – Benefits – Statutory provisions – Practice – Leave to appeal – Arbitration – Jurisdiction of arbitrator

Wawanesa Mutual Insurance Co. v. Motor Vehicle Accident Claims Fund, [2023] O.J. No. 3768, 2023 ONSC 4779, Ontario Superior Court of Justice, August 21, 2023, S. Doi J.

The insurer appealed an arbitrator’s decision on a reimbursement claim made by the insurer in respect to benefits paid to Mr. Bragdon who suffered catastrophic injuries in a snowmobile accident. The insurer subsequently learned the snowmobile was uninsured. The insurer sought reimbursement from the respondent on the basis that the respondent is responsible for coverage of uninsured vehicles. The arbitrator partially denied reimbursement and ordered the insurer to pay the respondent’s legal expenses, fees, and costs.

The respondent did not fully reimburse the insurer on the basis that some of the benefits were paid before the criminal charge was withdrawn and before the admission the snowmobile was not insured and because the insurer had not paid some benefits in accordance with the Statutory Accident Benefits provisions.

The Court found the arbitrator applied the correct law and in applying the correct law made no palpable and overriding error.

This case was digested by Cameron B. Elder, 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 contact Cameron B. Elder at [email protected].

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