Financial Services Commission of Ontario

Commission des services financiers de l’Ontario

Neutral Citation: 2007 ONFSCDRS 20

FSCO A05-002913

BETWEEN:

NAGEEB ABDULKARIM

Applicant

and

NORDIC INSURANCE COMPANY OF CANADA

Insurer

DECISION ON A PRELIMINARY ISSUE

Before:

David Snider

Heard:

February 2, 2007, in London, Ontario.

Appearances:

Faisal Joseph for Mr. Abdulkarim

Douglas A. Wallace for Nordic Insurance Company of Canada

Issue:

The Applicant, Nageeb Abdulkarim, was injured in a motor vehicle accident on September 7, 2004. He applied for and received statutory accident benefits from Nordic Insurance Company of Canada ("Nordic"), payable under the Schedule.¹ Nordic took the position that pursuant to section 30(1)(a) of the Schedule it was not required to pay non-earner benefits to Mr. Abdulkarim because he knew or ought reasonably to have known the he was operating the automobile while it was not insured under a motor vehicle liability policy. Mr. Abdulkarim disagreed with their position. The parties were unable to resolve their disputes through mediation, and Mr. Abdulkarim applied for arbitration at the Financial Services Commission of Ontario under the Insurance Act, R.S.O. 1990, c.I.8, as amended.

The preliminary issue therefore is:

Is Mr. Abdulkarim precluded from receiving non-earner benefits, pursuant to Part III of the Schedule, due to the effect of the general exclusion set out in section 30(1)(a) of the Schedule?

Result:

For oral reasons given on the recorded transcript at the preliminary issue hearing held in London, Ontario on Februray 2, 2007, I hereby order the following result:

Mr. Abdulkarim is not precluded from receiving non-earner benefits, pursuant to Part III of the Schedule, due to the effect of the general exclusion set out in section 30(1)(a) of the Schedule. Nordic shall not rely upon the said exclusion to deny payment of non-earner benefits to Mr. Abdulkarim, and if there are other issues on the merits upon which Nordic intends to rely to continue to deny non-earner benefits Nordic shall declare those reasons forthwith and the matter shall proceed to the hearing of the substantive issues as scheduled for May 1, 2, 3, 7, 8, 9 and 10, 2007.
If as a consequence of this decision on the preliminary issue the parties wish to reconvene a pre-hearing discussion in this matter they may request same from the Case Administrator and any such reconvening of the pre-hearing discussion shall be before an Arbitrator other than myself.

EXPENSES:

I leave the issue of the expenses of the parties for the preliminary issue hearing to the discretion of the Arbitrator conducting the substantive issue hearing.

February 7, 2007

David Snider Arbitrator

Date