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Monthly Archives: August 2016

Ontario Superior Court of Justice’s new rule: Insured cars taken without consent are uninsured

A recent case in the Ontario Superior Court of Justice has brought on a new precedent in the auto insurance industry. The ruling states that vehicles covered by insurance are considered “uninsured” if a car is taken from the owner without consent.

The case, Skunk v Ketash, 2016 ONSC 2019, asked the court to decide whether uninsured or underinsured coverage applied to a policyholder’s spouse when the vehicle had been driven without the owner’s consent.

The plaintiff, Skunk, was a passenger in her spouse’s car but her spouse was not present; the vehicle was actually being driven by Ketash (the defendant). The car got into a collision and Skunk was injured. While the defendant did not have insurance, the car itself was insured with Jevco.

Skunk tried to make a claim against Jevco, but was denied coverage as Skunk’s husband had charged Ketash with theft of the vehicle. The Superior Court agreed with Jevco, citing that a plaintiff cannot make a claim when a spouse owns the vehicle. For more details on the case, see here: http://www.insurancebusiness.ca/news/auto/insured-cars-taken-without-consent-are-considered-uninsured-ontario-superior-court-212071.aspx

The moral of the story? Vehicle owners need to be very cautious as to who uses their car. Be sure to contact your insurance broker or company agent for more information on how something like this can affect your policy.

The importance of flood protection in Canada

Did you know that flooding is the most frequently occurring natural hazard in Canada? And did you know that until recently, Canada was the only G8 country without overland flood insurance for homeowners?

Following the destructive floods we’ve seen in Canada, a new publication entitled, “The road to flood resilience in Canada”, shows that flood events in Canada can potentially trigger losses exceeding CAD 13 billion with less than half of those covered by insurance. This fact can have severe economic and social consequences for all concerned.

The report said insurance covered only about one-third of the economic losses suffered as a result of the Alberta floods and about $1 billion of the almost $1.5 billion in total losses from a flood that submerged roads, railways and basements in Toronto a few weeks later that same year.

The report not only analyzes the risks confronting Canadians, but what has to be done and what should be done to alleviate those risks. The report encourages the insurance industry to launch more effective product marketing effort towards consumers. In essence, all key risk management stakeholders should act together to better protect Canadians against this risk in the future.

For the full copy of Swiss Re’s report, click here