The defendant insurer brought a motion for summary judgment arguing that the plaintiff’s claim for non-earner accident benefits was statute‑barred.
The insurer had denied the benefit in July 2006, but the insured commenced mediation in 2010 and issued a statement of claim in 2011.
The court held that the two‑year limitation period under the Insurance Act and Statutory Accident Benefits Schedule runs from the insurer’s refusal to pay the benefit, even if the reason given later proves legally incorrect.
The plaintiff also failed to commence the court proceeding within the additional 90‑day period following the mediator’s report.
The action was therefore barred by the statutory limitation period and summary judgment was granted.
