The appellant insurer appealed an order holding it responsible for the first $200,000 of damages payable to the plaintiffs, who were intentionally struck and injured by the insured's vehicle.
The insurer argued it was not obliged to indemnify the insured due to his intentional criminal act under s. 118 of the Insurance Act.
The Court of Appeal dismissed the appeal, holding that ss. 258(1) and (4) of the Act create an absolute liability on the part of the insurer toward innocent third parties, which is not dependent on the insured's right to indemnity.
