A reminder to insurers that Section 4 of the Insurance
Regulation, pursuant to the new B.C. Insurance Act, is now
in place as of July 1, 2012. This section requires that insurers
notify an insured of any applicable statutory limitation periods
that may apply in respect of the insurance contract.
The notice must include several key elements:
1. It must be in writing;
2. It must advise of the applicable limitation period (pursuant
to either s. 23. 76 or 104 of the Act);
3. It must contain a statement that "the limitation period
is set out in the Insurance Act".
Unfortunately, the wording of the timing section for
notification in the original Regulations was unclear. However, as
of December 19 2012, an amendment to the Regulations has been in
force to clarify this issue. Based on the revised Regulation,
notification must occur:
1. 5 business days after the insurer denies liability for all or
part of the claim;
2. 10 business days after the first anniversary of the date the
insurer receives notice of a claim or of an action under s. 25 of
the Act, unless the insurer has already given the 5
days' notice as per (1) above, or adjusted the loss and settled
This section applies to all insurance contracts, except accident
and sickness insurance in respect of health care. The only
exception to the notification provision is where the insured is
represented by counsel, presumably because it is then counsel's
obligation to inform their client accordingly.
The penalty for failing to abide by the notification provision
is a suspension in the running of time for the limitation period
a. the date that notice is given;
b. the date that would cause the limitation period to exceed 6
years after the date the cause of action against the insurer
Therefore, where an insurer is denying a claim for coverage, it
may wish to include in its denial letter a section advising the
insured of the applicable limitation period, with a reference to
the Insurance Act. In this way, the insurer has complied
with the notification provisions and starts the clock running on
the limitation deadline.
For a comprehensive review of the section, please refer directly
to the Act and Regulations.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Automobile drivers, like fine wine, tend to get better with age. Older drivers can draw on a wealth of experience from their years on the road to assist them when faced by a variety of dangerous conditions.
Under B.C.'s former and current Limitation Act, the limitation period for a Plaintiff's claim can be extended on the basis of a Defendant having acknowledged in writing some liability for the cause of action.
The insurance industry will be interested in Ledcor Construction Ltd v. Northbridge Indemnity Insurance Co because of principles the Supreme Court of Canada applied to the "faulty workmanship" exclusion in a Builders' Risk policy.
The recent Preliminary Issue decision in Walsh and Echelon (FSCO A15-007448, August 31, 2016) confirms that an economic loss does not need to be demonstrated in order to be entitled to attendant care benefits.
For the first time in BC, a Court has decided that an insured is entitled to special costs, rather than the lower tariff costs, solely because they were successful in a coverage action against their insurer.
Policyholders recently won a key victory at the Supreme Court of Canada in Ledcor Construction Ltd. v. Northbridge Indemnity Insurance Co. as the Supreme Court clarified the interpretation of a standard form...
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).