LAT Makes Insurer Pay For Non-Compliant Notice

On reconsideration of a decision at the License Appeal Tribunal (LAT), Executive Chair Linda Lamoureux has confirmed that an insurer's deficient notice under Section 38 of the SABS will have strict consequences.

The decision, M.F.Z. v Aviva Insurance Canada, dealt with two claims, which the insurer treated within the Minor Injury Guideline (MIG). When denying a claimant's application for medical and rehabilitation benefits, Section 38 requires that the insurer's correspondence include specific information. The LAT has generally followed the FSCO decision of Augustin v. Unifund (2013) when determining the proper content of a Section 38 notice. If the insurer's denial correspondence fails to satisfy the Section 38 notice requirements, subsection (11) provides for two consequences: