The insured applied for arbitration after the insurer terminated his income replacement benefits (IRBs).
The insurer subsequently commenced a court action seeking repayment of the IRBs, alleging wilful misrepresentation or fraud.
The insurer then brought a motion to add the issue of repayment to the ongoing arbitration.
The insured objected, arguing the issue was not mediated and was the subject of an existing court action.
The arbitrator granted the insurer's motion, finding that under the amended section 282(3) of the Insurance Act, the arbitrator has jurisdiction to determine all issues in dispute.
The arbitrator held that the repayment issue reasonably and consequentially flowed from the mediated issue of entitlement to IRBs, and permitted the insurer to add the issue provided it withdrew the related court action to avoid a multiplicity of proceedings.
