The Motor Vehicle Accident Claims Fund is not an ordinary insurer in priority disputes and an arbitrator may order full reimbursement to the Fund under section 7(6) of the Regulation.
An insurer mistakenly believed that a snowmobile was not covered under its automobile insurance policy and persuaded the Motor Vehicle Accident Claims Fund to accept responsibility for paying statutory accident benefits to an injured passenger.
When the coverage error was discovered, the Fund sought reimbursement and the insurer refused, arguing that the Fund had lost its ability to contest priority once it accepted responsibility.
The arbitrator found the insurer was the priority insurer and ordered reimbursement.
The Court of Appeal upheld the decision, holding that the Fund is not an ordinary insurer in priority disputes under the Regulation and is entitled to resile from its acceptance of priority.
The court also clarified that section 7(6) of the Regulation permits an arbitrator to order full reimbursement of benefits paid, not merely impose sanctions.
Ontario (Minister of Finance) v. Echelon General Insurance Co., 2019 ONCA 629