Insureds Take Note: Québec Courts Strictly Apply Notice Provisions In Insurance Contracts

Insurance policies offer policy-holders security: the policy-holder pays a premium and in return the insurer agrees to cover the risks outlined in the policy. This coverage is not however automatic. In fact, failure of the insured to notify the insurer of any loss which may give rise to an indemnity in a timely manner can result in the forfeiture of the right to compensation¹. In order to ensure coverage and increase security, it is therefore crucial that the insured provide notice of any potential claim immediately upon becoming aware of it².

The risk associated with failing to disclose a notice of loss in a timely manner was recently highlighted in the case of Rosenstein c. Guarantee Company of North America³.  In the Rosenstein case, the Superior Court of Québec denied the insureds' application for coverage on this basis. The Court found that the insurer was entitled to rely on a notification provision in the insurance policy in order to deny coverage. As a