Can a plaintiff pursue a claim against her own insurer for underinsurance coverage after settling with the tortfeasor for less than the policy limits?
Ontario, Canada
The following excerpt is from Kovacevic v ING Insurance, 2015 ONSC 3415 (CanLII):
In Sadhu the plaintiff settled for less than the policy limits of the at-fault driver without entering into a limits agreement and then brought a claim against her own insurer for underinsurance coverage. The court (Arrell J.) stated that the plaintiff was not entitled to pursue a claim against her own insurer for underinsurance coverage after settling with the tortfeasor for less than the tortfeasor’s insurance policy limits. Arrell J. reached this decision on the basis that the plaintiff did not obtain the consent of her own insurer when she settled with the at-fault driver for an amount less than the limits available under the at-fault driver’s insurance policy. The court in Sadhu distinguished this situation from the situation in the case of Somersall v. Friedman, [2002] SCC 59.
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
Can an insurer deny coverage under a policy issued by a new insurer because the insurer was aware of a potential claim in an underlying action brought against the insureds? (Ontario, Canada)
If an insurance policy question is ambiguous and open to multiple interpretations and leads an applicant for insurance coverage to provide incorrect information, must the answer be resolved as against the insurer? (Ontario, Canada)
Can a fraudulent insurance claim result in no recovery for the insured under the applicable insurance policy? (Ontario, Canada)
Can a clause in a policy that states that an insurer may deny coverage, such as s. 1.4 of the policy, be interpreted as "may" preclude coverage? (Ontario, Canada)
What is the current state of the insurance industry's position on the insurance market when it comes to insurance coverage? (Ontario, Canada)
Is a personal injury insurer required to pay a plaintiff's legal fees and costs for the purposes of their insurance policy? (Ontario, Canada)
In what circumstances will the tortfeasor’s insurer and the underinsurance insurer split the costs of the action? (Ontario, Canada)
Is there any case law in which a plaintiff can claim damages from a disability insurance contract for loss of income as a result of a tortfeasor's negligence? (Ontario, Canada)
What is the limitation period for a plaintiff's claim that the sale price of a property was below market value when it was originally agreed to be at the time of the Minutes of Settlement? (Ontario, Canada)
Is an insurer's obligation to pay insurance monies to an insured a debt that can be garnished? (Ontario, Canada)
