The appellants suffered severe injuries in a motor vehicle accident caused by an underinsured driver.
They sued their government-owned insurer for the shortfall, alleging the insurer failed to inform them about the availability of underinsured motorist coverage (UMC).
The Supreme Court of Canada held that a public insurer owes a duty of care to inform its customers of all available optional coverages, their purpose, and their cost.
The Court found the insurer breached this duty by providing inadequate and confusing information, and restored the trial judge's award of damages for the shortfall and costs on a solicitor and client basis.
