The plaintiff was injured in a car accident by an unidentified driver and claimed the $200,000 policy limit under his unidentified driver coverage with the defendant insurer.
The plaintiff also received $102,400 in disability benefits from a private disability policy.
The defendant insurer sought to deduct the disability benefits from the $200,000 limit pursuant to s. 2(1)(b) of O. Reg. 676.
The motion judge held the deduction was not permitted due to the common law private insurance exception to the rule against double recovery.
The Court of Appeal allowed the appeal, holding that the regulation abrogated the common law exception and the insurer was entitled to deduct the disability payments.