Providing Medical Evidence Is Not Always Required When Terminating Insurance Benefits

In Varriano v. Allstate Insurance Company of Canada, 2023 ONCA 78 (CanLII) ("Varriano"), the Court of Appeal recently clarified what notice requirements insurers must satisfy to successfully give notice of termination of Income Replacement Benefits ("IRBs") and commence the insured's limitation period to seek review. The Court came to the conclusion that medical reasons for termination are not required unless relied on by the insurer.

Ontario's Statutory Accident Benefits Schedule ("SABS") allow insured individuals harmed in an accident involving an automobile to be paid IRBs if they have suffered an impairment and meet the statutory criteria in section 5.

1. The insured person,