A recent court ruling in Ontario has shed light on the responsibilities of auto insurance policyholders when it comes to their insurer’s defence in a legal case.
The case in question involved a man who was involved in a car accident and was subsequently sued by the other driver. The man’s insurance company, Aviva Canada, provided him with a defence lawyer, but the man refused to cooperate and did not attend any of the scheduled examinations for discovery.
As a result, Aviva Canada sought to have the man removed from the policy and to deny coverage for the lawsuit. However, the court ruled in favor of the man, stating that he was not obligated to assist in his insurer’s defence.
The judge noted that while policyholders do have a duty to cooperate with their insurer, this duty does not extend to actively participating in the defence of a lawsuit. The judge also pointed out that the man had not breached any specific terms of his insurance policy.
This ruling serves as a reminder to both insurers and policyholders of the importance of understanding the terms and obligations outlined in an insurance policy. It also highlights the need for clear communication between insurers and policyholders in order to avoid any misunderstandings or disputes.
In light of this ruling, it is crucial for insurers to clearly outline the responsibilities of policyholders in the event of a legal case. It is also important for policyholders to carefully review their insurance policies and understand their rights and obligations.
Ultimately, this case serves as a reminder that insurance is a two-way street, with both parties having certain duties and responsibilities. By understanding and fulfilling these obligations, both insurers and policyholders can work together to ensure a smooth and fair claims process.
