{"id":589,"date":"2017-06-25T17:39:02","date_gmt":"2017-06-25T21:39:02","guid":{"rendered":"http:\/\/limitations.ca\/?p=589"},"modified":"2017-06-25T17:39:18","modified_gmt":"2017-06-25T21:39:18","slug":"ontario-ca-confirms-insurers-have-no-duty-to-disclose-limitation-period","status":"publish","type":"post","link":"http:\/\/limitations.ca\/?p=589","title":{"rendered":"Ontario: CA confirms insurers have no duty to disclose limitation period"},"content":{"rendered":"

In Usanovic v. Penncorp Life Insurance Company (La Capitale Financial Security Insurance Company)<\/a><\/em>,\u00a0Court of Appeal has confirmed that an insurer’s duty of good faith does not require it to give notice of the limitation period to its insured.\u00a0 While the legislatures of some provinces have imposed a statutory obligation to this effect on insurers, Ontario has not.\u00a0 Whether it should is a matter for the legislature.<\/p>\n

We wrote about the lower court decision here<\/a>.<\/p>\n

This was the plaintiff’s argument on appeal:<\/p>\n

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[<\/a>20]\u00a0\u00a0 \u00a0\u00a0 The appellant submits, however, that the insurer\u2019s failure to inform him of the limitation period precludes it from relying on the limitation period to defend his claim. He submits that the insurer\u2019s common law duty of good faith and fair dealing should require it to inform the insured of the existence of the limitation period.<\/p>\n

[<\/a>21]\u00a0\u00a0 \u00a0\u00a0 The appellant concedes that there is no statutory obligation to this effect in Ontario. He submits, however, that this obligation flows from the insurer\u2019s duty to give the same consideration to the insured\u2019s interest as it does to its own interests and can be imposed through the development of the common law and need not be based on statute.<\/p>\n<\/blockquote>\n

Justice Strathy rejected this argument:<\/p>\n

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[45]\u00a0\u00a0 \u00a0\u00a0 The Ontario legislature might have gone further than it has, for example, by adopting the approach taken in Alberta or British Columbia. It presumably chose not to do so and, in my respectful view, the court should not impose consumer protection measures on insurers, outside the terms of their policies, that the legislature has not seen fit to require. A properly crafted regime, such as those in effect in Alberta and British Columbia, would not only have to specify the requirement to give notice, but also the consequences of failing to do so.<\/p>\n

[46]\u00a0\u00a0 \u00a0\u00a0 The consequences of the appellant\u2019s proposed expansion of the duty of good faith are significant. The appellant\u2019s interpretation would effectively judicially overrule the provisions of the Limitations Act, 2002<\/a><\/em> by making notice given by an insurer to an insured the trigger for the limitation period, rather than discoverability of the underlying claim. This would defeat the purpose of the statute and bring ambiguity, rather than clarity, to the process.<\/p>\n<\/blockquote>\n

\n","protected":false},"excerpt":{"rendered":"

In Usanovic v. Penncorp Life Insurance Company (La Capitale Financial Security Insurance Company),\u00a0Court of Appeal has confirmed that an insurer’s duty of good faith does not require it to give notice of the limitation period to its insured.\u00a0 While the legislatures of some provinces have imposed a statutory obligation to this effect on insurers, Ontario … Continue reading Ontario: CA confirms insurers have no duty to disclose limitation period<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[260,261,33],"class_list":["post-589","post","type-post","status-publish","format-standard","hentry","category-ontario","tag-duty-of-good-faith","tag-if-only-you-had-told-me","tag-insurance"],"_links":{"self":[{"href":"http:\/\/limitations.ca\/index.php?rest_route=\/wp\/v2\/posts\/589","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/limitations.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/limitations.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/limitations.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/limitations.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=589"}],"version-history":[{"count":2,"href":"http:\/\/limitations.ca\/index.php?rest_route=\/wp\/v2\/posts\/589\/revisions"}],"predecessor-version":[{"id":591,"href":"http:\/\/limitations.ca\/index.php?rest_route=\/wp\/v2\/posts\/589\/revisions\/591"}],"wp:attachment":[{"href":"http:\/\/limitations.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/limitations.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=589"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/limitations.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}