The appellant's hotel was damaged by fire, and it claimed for loss under its all-risks insurance policy.
The claim was made more than one year after the loss but within one year of filing proof of loss.
The insurer argued the claim was statute-barred under the one-year limitation period in Part 5 (Fire Provisions) of the British Columbia Insurance Act.
The Supreme Court of Canada held that multi-peril policies do not fit within the outmoded categories of Part 5 and are therefore governed by the general provisions of Part 2, which provides a limitation period of one year from filing proof of loss.
The Court also held that the insurer could not contractually impose a harsher limitation period than that provided in Part 2.
The appeal was allowed.
