Acting For Both Insured And Insurer - What Counsel Need To Know

You have been retained to act for the insurer and the driver as a result of a rear-end motor vehicle accident in which the driver has been rear-ended. There is likely no liability against your client and there are no mechanical issues with the vehicle. Unfortunately, and not surprisingly, you encounter a difficult insured who refuses to co-operate and fails to reply to your letters, phone calls, or requests (pleas), that they attend examination for discovery. What do you do?

If this happens, your insurer client might consider having itself added as a statutory third party pursuant to section 258(14) of the Insurance Act, and in which an insurer is allowed to, effectively, step into the shoes of the insured despite coverage issues.