The plaintiff sued her accident benefits insurer for breach of contract and bad faith after the insurer refused to pay non-earner benefits following a motor vehicle accident.
The insurer moved for summary judgment on the basis that the claim was statute‑barred under the two‑year limitation period in the Insurance Act and the Statutory Accident Benefits Schedule.
The court held that the limitation period began when the insurer clearly refused the non‑earner benefit in 2004, or alternatively when income replacement benefits were discontinued in 2006.
A subsequent application for non‑earner benefits years later could not restart the limitation period.
The court also found no evidentiary basis for claims of bad faith or mental distress in the administration of the claim.
