An insurer appealed an arbitrator’s decision concerning a statutory loss transfer claim under the Insurance Act following payment of statutory accident benefits after a motor vehicle accident.
The appellant insurer argued the two‑year limitation period under the Limitations Act, 2002 began with the first request for indemnification and barred the claim because arbitration commenced more than two years later.
The court upheld the arbitrator’s conclusion that each request for indemnification creates a separate “rolling” limitation period that begins when the second‑party insurer fails to satisfy that request.
While the first request for indemnification was statute‑barred, later requests were within the limitation period and remained enforceable.
The court emphasized that loss transfer claims arise from statute rather than tort principles and are analogous to recurring contractual obligations.
