ONCA Divided In Accident Benefits Nexus Case

In a 2-1 split, the Court of Appeal for Ontario has allowed an insurer's appeal of a priority dispute case deciding whether any insurer of any kind, or only "motor vehicle liability insurers", are obliged to pay accident benefits pending the resolution of a priority dispute.

In Zurich v. Chubb, the claimant was driving a Ford Windstar that she had rented from Wheels4Rent, a car rental agency.  On September 23, 2006, she had an accident and was injured.  No other vehicle was involved.

Wheels4Rent offered an optional accident policy providing coverage in the event of accidental loss of life and injury.  Chubb was the insurer of the optional policy.  The claimant declined the optional policy. After the accident, the claimant applied for benefits under the optional policy.  Chubb declined to provide benefits on the basis that the optional policy was not a motor vehicle policy, but rather was a commercial policy. In other words, Chubb refused to accept her application