The Minister of Finance appealed an arbitrator's decision that an Elite Insurance policy was not in force at the time of a motor vehicle accident, despite Elite's invalid non-renewal notice.
The arbitrator had found the policy automatically renewed for only a six-month term due to mutual intent to end the contractual relationship.
The Superior Court found the arbitrator's decision unreasonable, holding that Section 236(5) of the Insurance Act clearly displaces common law principles of contract renewal, meaning the policy remained in force until Elite properly discharged its statutory notice obligations.
The Minister's appeal was allowed, and Elite's cross-appeal regarding the invalidity of its non-renewal notice was dismissed.
