The Insurance Act requires insurers to attempt to settle claims arising from car accidents as “expeditiously as possible." The Act also requires that either party to a motor vehicle action participate in mediation if the other side requests it. But what kind of teeth does this section really have in practice?  Judging from a recent Ontario Superior Court decision, the consequences for insurers who fail to abide by the letter and the spirit of the Act can be considerable. In Ross v. Bacchus the defendant insurer agreed to attend a mediation, but wrote beforehand that they were really “not interested” in settling the case.  The [...]

In September 2010 the Ontario government slashed the medical benefits you could get under your car insurance policy for injuries suffered in a motor vehicle accident. The $100,000 limit for treatments (those not covered by OHIP) was reduced to $50,000. For accident victims with so-called "minor injuries", such as strains, sprains and whiplash, the $100,000 limit was cut to $3,500. Last month, the Financial Services Commission of Ontario (FSCO) ruled in favour of an accident victim who claimed expenses beyond the minor injury limit. Lenworth Scarlett argued that in addition his whiplash injuries he also had pre-existing injuries and subsequent psychological [...]