Insurers: Don't Tell On Your Insureds

Insurance companies will occasionally assign an employee to investigate claims that are expected to be substantial or may appear suspicious. However, what happens when an investigator discovers incriminating evidence against their insured? Are they obligated to report the evidence to the police? 

In Barata v Intact Insurance Company, 2021 ABQB 419, the insured husband and wife struck a pedestrian while operating their insured vehicle. They initially stopped but left the scene without waiting for the police. The pedestrian later died in the hospital due to his injuries. The police were able to locate the husband and wife and arrested the husband on the assumption he was operating the vehicle at the time of the accident.