The insured sought recovery under an aircraft insurance policy after a twin‑engine aircraft crashed during an attempted takeoff using only one functioning engine.
The insurer denied coverage, arguing the occurrence was not an “accident” and alternatively that the insured breached a policy condition requiring protection of the aircraft from further loss.
Applying Supreme Court of Canada jurisprudence defining an accident as an “unlooked‑for mishap or occurrence,” the court held that negligent conduct may still constitute an accident unless the insured deliberately assumed a known risk.
Although the pilot’s decision to attempt a single‑engine takeoff was negligent and ill‑advised, the evidence did not establish recklessness or deliberate risk assumption sufficient to remove the occurrence from coverage.
The court also found no breach of the policy’s aircraft protection condition.
Judgment was granted for the insured.