Insurer cannot eliminate statutory accident benefits coverage without using prescribed form OPCF 16 or cancelling policy.
The appellant insurer appealed an arbitrator's decision in two priority disputes regarding liability for statutory accident benefits (SABs).
In both cases, the appellant had issued motor vehicle liability policies that were later reduced to comprehensive coverage without the use of the prescribed OPCF 16 form, and subsequently renewed.
The arbitrator held that the failure to use the prescribed form meant the policies continued as motor vehicle liability policies with SABs coverage.
The Superior Court of Justice dismissed the appeals, affirming that an insurer can only eliminate SABs coverage by cancelling the existing policy and issuing a new non-liability policy, or by using the mandatory OPCF 16 form.
SCJSuperior Court of JusticeFeb 8, 2016