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An innocent passenger in a stolen vehicle is not excluded from uninsured motorist coverage under the standard automobile policy.
This appeal concerned the interpretation of an exclusion clause (s. 1.8.2) in the standard Ontario Automobile Policy regarding uninsured motorist coverage for passengers in a stolen vehicle.
The motion judge had ruled that the exclusion applied to the plaintiff passenger, Joshua Burnham, even if he did not know the vehicle was stolen, thereby shifting liability to the Motor Vehicle Accident Claims Fund.
The Court of Appeal reversed this decision, holding that the exclusion does not apply to innocent passengers in the insured vehicle, aligning with the policy's legislative history and purpose to expand coverage and reduce reliance on the Fund.
Uninsured motorist coverage denied to passenger in stolen vehicle under the vehicle owner's policy.
The defendant insurer brought a Rule 21.01 motion to dismiss the plaintiff's action for uninsured motorist coverage.
The plaintiff was injured as a passenger in a stolen vehicle insured by the defendant.
The Minister, responding on behalf of the uninsured driver's estate, argued the plaintiff was entitled to coverage because he did not know the vehicle was stolen.
The court held that under section 1.8.2 of the Standard Ontario Automobile Policy, coverage is excluded for the automobile insured by the policy if it is operated without the owner's consent, regardless of the passenger's knowledge.
The motion was granted and the action against the insurer was dismissed.
