The applicant, a member of the Canadian Armed Forces, sought a declaration of entitlement to benefits under an accidental dismemberment insurance policy after losing his leg following complications during knee surgery related to a service injury.
The insurer denied coverage, arguing the loss did not arise from military service and was excluded as resulting from medical or surgical treatment.
The court held the surgery arose out of the applicant’s military service because it was undertaken to address limitations affecting his military career.
The transection of the artery during surgery constituted an accidental injury, and the insurer failed to establish that the exclusion for medical or surgical treatment applied.
The applicant was therefore entitled to the $125,000 dismemberment benefit plus prejudgment interest.