Insurer ordered to pay $6,000 special award for unilaterally terminating benefits in breach of a consent order.
The applicant was injured in a motor vehicle accident and received income replacement benefits.
Following a consent order requiring the insurer to pay ongoing benefits, the insurer unilaterally terminated the benefits based on new medical information, arguing the test for entitlement had changed at the 104-week mark.
The arbitrator found that the insurer acted unreasonably by terminating benefits in contravention of the consent order and section 287 of the Insurance Act, which requires an insurer to continue payments until a variation order is obtained.
The arbitrator ordered the insurer to pay a special award of $6,000 for unreasonably withholding payments.
OFSCDRSOntario Financial Services Commission - Dispute Resolution ServicesMay 25, 2007
