The appellant insurer sought indemnification from the respondent insurer under the loss transfer provisions of the Insurance Act for the costs of insurer-generated medical assessments.
The respondent conceded its insured was 100 per cent at fault but refused to indemnify the costs of the medical assessments, arguing they were not payments 'in relation to' statutory benefits paid.
The arbitrator and the Superior Court judge ruled in favour of the respondent.
The Court of Appeal dismissed the appeal, holding that the expense of insurer-generated medical assessments is not recoverable under s. 275(1) of the Insurance Act as payments 'in relation to such benefits paid'.
