A Coverage ‘Thrilla' In Manila – Court Finds Underinsured Endorsement Provides Worldwide Coverage

A recent decision of the Alberta Court of Queen's Bench demonstrates that policy holders must carefully consider the interplay between an insurance policy and its endorsements. In Wage v Canadian Direct Insurance Incorporated, 2019 ABQB 303, the court interpreted a standard form family protection endorsement to an automobile insurance policy to provide coverage for an accident in the Philippines, even though the territorial limit of the underlying policy was Canada and the United States.

The decision turned on a conflict between the wording of the territorial limit stated in the policy and the nature of the family protection endorsement. The policy provided coverage while the insured automobile was located within Canada or the U.S., but the endorsement extended coverage to certain accidents not involving that vehicle. As a result, even though the endorsement was expressly subject to all limits specified in the policy, the insured argued that the accident in the