The applicant, Intact Insurance Company, sought a declaration that the respondent, Aviva Insurance Company of Canada, was obligated to defend and indemnify Charlie Youssef, or at least be responsible for the first $200,000 in damages, following a motor vehicle accident.
Aviva had denied coverage to the vehicle owner, Michael Youssef, alleging material misrepresentation and that the policy was void ab initio because the car was added to the policy after the accident.
The court found that the Aviva policy was effective on the date of the accident, as no specific time was stated, and that Section 258 of the Insurance Act mandates an insurer's liability for the first $200,000 in damages to third parties, regardless of policy voidance due to misrepresentation.