Farmers' Mutual Insurance Company (Lindsay) appealed an arbitration decision that found its commercial umbrella liability policy covered Statutory Accident Benefits Schedule (SABS) benefits for an all-terrain vehicle (ATV) accident.
The court, reviewing for reasonableness, found the arbitrator erred in interpreting the definition of 'automobile' within the Umbrella policy.
However, the court concluded that the ATV was covered under Farmers' standard Ontario Automobile Policy (OAP) via the 'Newly Acquired Automobiles' provision, due to the Umbrella policy's effect on the OAP's prerequisite that the insurer insure all automobiles owned by the insured.
Consequently, Farmers' appeal was dismissed, and the Minister of Finance's cross-appeal was allowed, affirming Farmers as the priority insurer responsible for SABS benefits.
