A co-owner is vicariously liable if another co-owner consents to a non-owner driving.
An appeal concerning the vicarious liability of co-owners of a motor vehicle under the Highway Traffic Act and the scope of insurance coverage under the Insurance Act.
The appellant insurance company argued that where two co-owners jointly own a vehicle, only the co-owner who consented to a third party's possession of the vehicle should be vicariously liable for negligent operation by that third party.
The court rejected this argument, holding that if either co-owner consents to possession by a non-owner, both co-owners are vicariously liable under section 192(2) of the Highway Traffic Act.
The court also clarified that section 239(1) of the Insurance Act does not create liability but merely requires coverage of liabilities imposed by law.
OCACourt of AppealNov 10, 2025