B. Hardick

The applicant sought a declaration that his insurer was obligated to defend and indemnify him for a motor vehicle accident that occurred while he was delivering pizzas.

The insurer had denied coverage on the basis that the applicant failed to disclose the business use of his vehicle, which constituted a material change in risk.

The court dismissed the application, finding that the undisclosed business use was a material change in risk and that, pursuant to section 233 of the Insurance Act, the applicant's right to recover indemnity was forfeited.

The plaintiffs brought a motion to set aside a Registrar's Order dismissing their action for delay and to amend the Statement of Claim to substitute a named defendant for 'John Doe'.

The action arose from an airplane accident.

The court applied the Reid test, finding that the plaintiffs satisfactorily explained the litigation delay, inadvertence, and delay in bringing the motion, and that the defendants would not suffer non-compensable prejudice.

The motion to set aside the dismissal was granted, and the plaintiffs were permitted to amend their claim to add the named defendant.