Policyholder's Entitlement To Interest No Different Than Other Litigants

In Watt v TD Insurance,¹ the Superior Court of Justice confirmed that interest is payable on judgments against insurers, even where the damages awarded are only to compensate for the loss of chattels. The decision followed an earlier Court of Appeal case that held an insured was entitled to interest notwithstanding that policy limits had already been reached. Together, the two decisions underline that insurance considerations do not negate a policyholder's entitlement to interest payable under ordinary litigation principles.

Background

The insured brought an action against TD Insurance after it refused to fully compensate the insured for his losses following a fire that had damaged his house. The insured was successful, although the quantum of additional compensation was minimal. The insured then sought prejudgment interest.