Brenda Cuneo

The appellant insurer appealed an arbitration decision regarding a priority dispute over statutory accident benefits for a claimant injured on an all-terrain vehicle (ATV).

The arbitrator found that the respondent's policy, which specifically insured the ATV, met the definition of an 'accident' under the Statutory Accident Benefits Schedule (SABS).

However, the arbitrator erred by concluding that the appellant's general automobile policy, which did not cover the ATV, was still subject to the priority scheme in s. 268(2) of the Insurance Act.

The Superior Court of Justice held that the threshold for statutory accident benefits must be met under each specific policy before the priority scheme is engaged.

Since only the respondent's policy provided coverage, the priority scheme did not apply, and the appeal was granted.

The applicant insurer sought leave to appeal an arbitrator's preliminary ruling in a priority dispute.

The arbitrator had found that an ATV incident on private property constituted an 'accident' under the Statutory Accident Benefits Schedule, making the applicant responsible for paying benefits.

The court granted leave to appeal, finding that the interpretation of 'accident' and 'automobile' under the legislation raised a question of law, and that the determination of this question would significantly affect the rights of the parties and resolve the mediation.