The defendant insurer brought a motion for summary judgment seeking dismissal of an action arising from denial of insurance coverage following an alleged vandalism incident at the plaintiffs’ retail business.
The insurer argued the claim was barred by a one-year contractual limitation period derived from fire insurance statutory conditions under the Insurance Act.
The court held that the policy was a multi-peril policy in which fire was only an incidental peril and therefore the fire insurance statutory conditions did not apply.
The court further found that the policy language did not clearly or validly contract out of the two-year limitation period under the Limitations Act, 2002.
The motion for summary judgment was dismissed and the action was allowed to proceed.