Martina Aswani

Two Ontario residents injured in separate accidents outside Ontario involving an all-terrain vehicle (ATV) and a dirt bike sought statutory accident benefits (SABs) under their Ontario automobile insurance policies.

Both insurers denied coverage, arguing that the definition of "automobile" under Ontario law should be determined by the law of the jurisdiction where the accidents occurred (lex loci delicti).

The Court of Appeal held that Ontario law applies to the interpretation of Ontario contracts and statutes, and that the definition of "automobile" in the Insurance Act and Off-Road Vehicles Act applies uniformly regardless of where the accident occurs.

Both vehicles qualified as automobiles under the extended definition because they would have required insurance if operated in Ontario under the Off-Road Vehicles Act.

The court allowed the appeal of the insured and dismissed the appeal of the insurer.

The Minister of Finance appealed an arbitration award that found the Motor Vehicle Accident Claims Fund, not Echelon General Insurance Company, liable for statutory accident benefits (SABs) to an injured pedestrian.

The arbitrator had concluded that the insured's email constituted a valid request to terminate his automobile insurance policy, thereby absolving Echelon of liability.

The Minister argued the arbitrator's decision was unreasonable, contending the email was not a clear request, the context of Echelon's prior ineffective cancellation was ignored, and the decision frustrated consumer protection policies.

The court dismissed the Minister's appeal, finding the arbitrator's interpretation of "request" under the Statutory Conditions was reasonable and consistent with case law, which imposes no formal requirements on an insured's termination request.