AUTOMOBILE INSURANCE - Compulsory government schemes - Bodily injury and death benefits - No fault regimes

Law360 Canada ( July 22, 2022, 6:29 AM EDT) -- Appeal by the Minister of the Motor Vehicle Accident Fund of the decision of the arbitrator holding the Motor Vehicle Accident Claims Fund liable to pay statutory accident benefits under subsection 268(2) of the Insurance Act. Two adult brothers, Christopher and Casey, went for a ride on their snowmobiles together with Lance. Christopher’s snowmobile was in the lead. Casey was driving his snowmobile directly behind his brother. Christopher was not insured. Casey was insured by Gore Mutual. The claimant Lance was a passenger on the uninsured, front snowmobile being driven by Christopher. Unbeknownst to the brothers, a tree fell across their path. Christopher’s snowmobile collided with it first. Casey’s snowmobile collided with the tree about 0.6 seconds later. Both brothers were killed in the incident. Lance survived but was injured in the crash. She applied for statutory accident benefits. The arbitrator held that Casey’s snowmobile was not “involved in the incident” that gave rise to Lance’s entitlement of statutory accident benefits. The arbitrator held that Casey was not involved in the incident because he did not cause Christopher to crash into the tree ahead of him. The Motor Vehicle Accident Fund, represented by the Minister, was held to be the default payor of statutory accident benefits under s. 268 (2)(1)(iv) of the Insurance Act. The Minister submitted that the arbitrator erred in deciding that Casey’s snowmobile was not “involved in the incident”....
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