BC Supreme Court Considers The Insurance Act's Dispute Resolution Process

Introduction

In King v. Aviva Insurance Company of Canada, 2022 BCSC 973, the BC Supreme Court (the "Court") held that Ms. Paula King (the "Insured") could not opt out of the mandatory dispute resolution process ("DRP") she had commenced pursuant to section 12 of the Insurance Act, RSBC 2012, c 1 (the "Act"). Specifically, the Court dismissed the Insured's application to terminate the DRP and transfer the proceeding to the Court.

Background facts

In April 2019, the Insured experienced a significant water leak in her apartment which caused a considerable amount of damage. The Insured held a homeowners policy (the "Homeowner Policy") with Square One Insurance Services Inc. ("Square One"), and the strata held a policy (the "Strata Policy") with Aviva Insurance Company of Canada, Allianz Global Corporate & Specialty, Temple Insurance Company and Lloyd's Underwriters (collectively, the "Strata Insurers"). The Insured submitted claims under both the Homeowner