By
Pace Law

Loss Transfers And Delays For Accident Victims

September 17, 2012

Toronto Personal Injury Lawyer Albert Conforzi: A recent decision from the Ontario Court of Appeal has provided some further guidance to insurers on the issue of Loss Transfer.

Loss transfers exist between insurers of different classes of vehicles for accident benefit payments. For example, between a motorcycle and a car, or a car and a heavy commercial vehicle. The insurer of the motorcyclist who is responsible for paying accident benefits to that motorcyclist is entitled to reimbursement “in relation of benefits paid” from the car insurer. It’s like a ladder: you can claim that reimbursement from any insurer involved in the accident on a rung above you.

In the Wawanesa v. Axa decision, Axa refused to pay for the cost of medical assessments incurred when they were determining entitlement to benefits as part of loss transfer. The case went through three levels of decision makers, and at all levels it was decided that Wawanesa could not recover those expenses, notwithstanding that the various decision makers all agreed that it was unfair. Based on the wording of s. 275 of the Insurance Act such expenses were not recoverable.

It is not unusual for delays to happen in payment to accident victims because of disputes between insurers in the handling of the loss transfer.

Only Blair J. of the Court of appeal disagreed that the section was not capable of being interpreted in the manner argued by Wawanesa. Because of the split decision in the Court of Appeal, it is at least possible for Wawanesa to ask for leave to appeal to the Supreme Court of Canada, although it is unclear whether they will try to do so.

In matters where injured victims are claiming accident benefits, and the insurer is seeking loss transfer for payments made, it is not unusual for delays to happen in payment to accident victims because of disputes between insurers. These delays shouldn’t happen, as this loss transfer system is supposed to occur behind the scenes. Frequently, though, the first party insurer delays payments to victims while they are awaiting reimbursements back from the second insurer.

If your lawyer understands the loss transfer system and where to apply pressure in the event of a disruption in benefits payments, you as a victim stand a much better chance of not having to live through such disruption.

Share This Post
Email
Facebook
LinkedIn
Twitter
Trending Posts
Read More Insights
Events
By
Pace Law
Pace Law Firm is always looking to expand our business and elevate it to the next level. On Thursday November 24th, Pace Law Firm attended the Canadian Mortgage Summit (CMS) to hear from the industry’s top mortgage brokers, lenders and solution providers.
Firm News
By
Pace Law
We are proud to announce that Pace Law has become a multi-service firm and is launching a new website to accommodate our growth in different areas of law!
Events
By
Pace Law
The National Day for Truth and Reconciliation takes place on September 30th for the second consecutive year. Each year, September 30th marks both Orange Shirt Day and National Day for Truth and Reconciliation.
Real Estate Law
By
Pace Law
In key Canadian cities, the housing inventory may reach a crisis stage, according to a recent analysis from RE/MAX Canada. The analysis confirms that governments must take quick action to address the critically low supply of available homes.
Personal Injury
By
Pace Law
As the winter months get closer, it is critical to plan ahead and take precautions as needed to reduce the likelihood of mishaps. Nearly 30% of all motor vehicle incidents, according to recent RCMP data, happened on slick, snowy, or icy roadways.
Real Estate Law
By
Pace Law
Two weeks after the provincial administration submitted Bill 109, the More Homes for Everyone Act, 2022, on March 30, 2022, it obtained royal assent on April 14. The last step needed for a legislative measure to become law is royal assent.

Get in Touch

Call us now or fill out the form to discuss your case with an experienced legal professional.

Our Locations

Office Location

191 The West Mall, Suite 1100
Toronto, ON M9C 5K8
Phone: 1-877-236-3060
Fax: 416-236-1809

Office Location

191 The West Mall, Suite 1100
Toronto, ON M9C 5K8
Phone: 1-877-236-3060
Fax: 416-236-1809

Scroll to Top