Insurer ordered to pay private boarding school tuition as a reasonable rehabilitation expense for psychologically traumatized student.
The applicant, a high school student, was severely injured in a motor vehicle accident and suffered significant psychological trauma.
His therapist recommended a transfer to a private boarding school to assist his recovery by providing a structured social environment.
The insurer refused to pay the tuition, arguing it was not a reasonable or necessary expense resulting from the accident.
The arbitrator found that the applicant's pre-existing psychological vulnerability made him particularly susceptible to trauma, and that the boarding school placement was a successful and reasonable rehabilitation measure.
The insurer was ordered to reimburse the tuition and boarding expenses for two years.
OFSCDRSOntario Financial Services Commission - Dispute Resolution ServicesSep 8, 1994
