Acts and Regulations

I-12 - Insurance Act

Section 250
Disposition versions

Full text
Insurance money payable to satisfy judgment
250(1)Any person who has a claim against an insured for which indemnity is provided by a contract evidenced by a motor vehicle liability policy, notwithstanding that such person is not a party to the contract, may, upon recovering a judgment therefor in any province or territory of Canada against the insured, have the insurance money payable under the contract applied in or towards satisfaction of his judgment and of any other judgments or claims against the insured covered by the contract and may, on behalf of himself and all persons having such judgments or claims, maintain an action against the insurer to have the insurance money so applied.
250(2)No action shall be brought against an insurer under subsection (1) after the expiration of one year from the final determination of the action against the insured, including appeals if any.
250(3)A creditor of the insured is not entitled to share in the insurance money payable under any contract unless his claim is one for which indemnity is provided for by the contract.
250(4)The right of a person who is entitled under subsection (1) to have insurance money applied upon his judgment or claim is not prejudiced by,
(a) an assignment, waiver, surrender, cancellation or discharge of the contract, or of any interest therein or of the proceeds thereof, made by the insurer after the happening of the event giving rise to a claim under the contract,
(b) any act or default of the insured before or after that event in contravention of this Part or of the terms of the contract, or
(c) any contravention of the Criminal Code, chapter C-34 of the Revised Statutes of Canada, 1970, or a statute of any province or territory of Canada or of any state or the District of Columbia of the United States of America by the owner or driver of the automobile,
and nothing mentioned in paragraph (a), (b) or (c) is available to the insurer as a defence in an action brought under subsection (1).
250(5)It is not a defence to an action under this section that an instrument issued as a motor vehicle liability policy by a person engaged in the business of an insurer and alleged by a party to the action to be such a policy is not a motor vehicle liability policy, and this section applies mutatis mutandis to the instrument.
250(6)The insurer may require any other insurers liable to indemnify the insured in whole or in part in respect of judgments or claims to which reference is made in subsection (1) to be made parties to the action and contribute according to their respective liabilities, whether the contribution is rateably or by way of first loss or excess insurance, as the case may be, and the insured shall on demand furnish the insurer with particulars of all other insurance covering the subject matter of the contract.
250(7)Where any person has recovered a judgment against the insured and is entitled to bring action under subsection (1), and the insurer admits liability to pay the insurance money under the contract and the insurer considers that,
(a) there are or may be other claimants, or
(b) there is no person capable of giving and authorized to give valid discharge for payment who is willing to do so,
the insurer may apply to the court ex parte for an order for payment of the money into court, and the court may, upon such notice, if any, as it thinks necessary, make an order accordingly.
250(8)The receipt of the proper officer of the court is sufficient discharge to the insurer for the insurance money paid into court under subsection (7), and the insurance money shall be dealt with as the court may order upon application of any person interested therein.
250(9)Notwithstanding anything contained therein to the contrary, every contract evidenced by a motor vehicle liability policy shall, for the purposes of this section, be deemed to provide all the types of coverage mentioned in section 242, but the insurer is not liable to a claimant with respect to such coverage in excess of the limits mentioned in section 243.
250(10)Where one or more contracts provide for coverage of a type mentioned in section 240 or 241, the insurer may,
(a) with respect to that type of coverage, and
(b) as against a claimant,
avail itself of any defence that it is entitled to set up against the insured, notwithstanding subsection (4).
250(11)Where one or more contracts provide for coverage in excess of the limits mentioned in section 243, the insurer may,
(a) with respect to the coverage in excess of those limits, and
(b) as against a claimant,
avail itself of any defence that it is entitled to set up against the insured, notwithstanding subsection (4).
250(12)Repealed: 1974, c.22 (Supp.), s.6
250(13)The insured shall reimburse the insurer upon demand in the amount that the insurer has paid by reason of this section and that it would not otherwise be liable to pay.
250(14)Where an insurer denies liability under a contract evidenced by a motor vehicle liability policy, it shall, upon application to the court, be made a third party in any action to which the insured is a party and in which a claim is made against the insured by any party to the action in which it is or might be asserted that indemnity is provided by the contract, whether or not the insured enters an appearance or defence in the action.
250(15)Upon being made a third party, the insurer may,
(a) contest the liability of the insured to any party claiming against the insured,
(b) contest the amount of any claim made against the insured,
(c) deliver any pleadings in respect of the claim of any party claiming against the insured,
(d) have production and discovery from any party adverse in interest, and
(e) examine and cross-examine witnesses at the trial,
to the same extent as if it were a defendant in the action.
250(16)An insurer may avail itself of subsection (15) notwithstanding that another insurer is defending in the name and on behalf of the insured an action to which its insured is a party.
1968, c.6, s.248; 1974, c.22 (Supp.), s.6
Liability coverage
250(1)Any person who has a claim against an insured for which indemnity is provided by a contract evidenced by a motor vehicle liability policy, notwithstanding that such person is not a party to the contract, may, upon recovering a judgment therefor in any province or territory of Canada against the insured, have the insurance money payable under the contract applied in or towards satisfaction of his judgment and of any other judgments or claims against the insured covered by the contract and may, on behalf of himself and all persons having such judgments or claims, maintain an action against the insurer to have the insurance money so applied.
250(2)No action shall be brought against an insurer under subsection (1) after the expiration of one year from the final determination of the action against the insured, including appeals if any.
250(3)A creditor of the insured is not entitled to share in the insurance money payable under any contract unless his claim is one for which indemnity is provided for by the contract.
250(4)The right of a person who is entitled under subsection (1) to have insurance money applied upon his judgment or claim is not prejudiced by,
(a) an assignment, waiver, surrender, cancellation or discharge of the contract, or of any interest therein or of the proceeds thereof, made by the insurer after the happening of the event giving rise to a claim under the contract,
(b) any act or default of the insured before or after that event in contravention of this Part or of the terms of the contract, or
(c) any contravention of the Criminal Code, chapter C-34 of the Revised Statutes of Canada, 1970, or a statute of any province or territory of Canada or of any state or the District of Columbia of the United States of America by the owner or driver of the automobile,
and nothing mentioned in paragraph (a), (b) or (c) is available to the insurer as a defence in an action brought under subsection (1).
250(5)It is not a defence to an action under this section that an instrument issued as a motor vehicle liability policy by a person engaged in the business of an insurer and alleged by a party to the action to be such a policy is not a motor vehicle liability policy, and this section applies mutatis mutandis to the instrument.
250(6)The insurer may require any other insurers liable to indemnify the insured in whole or in part in respect of judgments or claims to which reference is made in subsection (1) to be made parties to the action and contribute according to their respective liabilities, whether the contribution is rateably or by way of first loss or excess insurance, as the case may be, and the insured shall on demand furnish the insurer with particulars of all other insurance covering the subject matter of the contract.
250(7)Where any person has recovered a judgment against the insured and is entitled to bring action under subsection (1), and the insurer admits liability to pay the insurance money under the contract and the insurer considers that,
(a) there are or may be other claimants, or
(b) there is no person capable of giving and authorized to give valid discharge for payment who is willing to do so,
the insurer may apply to the court ex parte for an order for payment of the money into court, and the court may, upon such notice, if any, as it thinks necessary, make an order accordingly.
250(8)The receipt of the proper officer of the court is sufficient discharge to the insurer for the insurance money paid into court under subsection (7), and the insurance money shall be dealt with as the court may order upon application of any person interested therein.
250(9)Notwithstanding anything contained therein to the contrary, every contract evidenced by a motor vehicle liability policy shall, for the purposes of this section, be deemed to provide all the types of coverage mentioned in section 242, but the insurer is not liable to a claimant with respect to such coverage in excess of the limits mentioned in section 243.
250(10)Where one or more contracts provide for coverage of a type mentioned in section 240 or 241, the insurer may,
(a) with respect to that type of coverage, and
(b) as against a claimant,
avail itself of any defence that it is entitled to set up against the insured, notwithstanding subsection (4).
250(11)Where one or more contracts provide for coverage in excess of the limits mentioned in section 243, the insurer may,
(a) with respect to the coverage in excess of those limits, and
(b) as against a claimant,
avail itself of any defence that it is entitled to set up against the insured, notwithstanding subsection (4).
250(12)Repealed: 1974, c.22(Supp.), s.6
250(13)The insured shall reimburse the insurer upon demand in the amount that the insurer has paid by reason of this section and that it would not otherwise be liable to pay.
250(14)Where an insurer denies liability under a contract evidenced by a motor vehicle liability policy, it shall, upon application to the court, be made a third party in any action to which the insured is a party and in which a claim is made against the insured by any party to the action in which it is or might be asserted that indemnity is provided by the contract, whether or not the insured enters an appearance or defence in the action.
250(15)Upon being made a third party, the insurer may,
(a) contest the liability of the insured to any party claiming against the insured,
(b) contest the amount of any claim made against the insured,
(c) deliver any pleadings in respect of the claim of any party claiming against the insured,
(d) have production and discovery from any party adverse in interest, and
(e) examine and cross-examine witnesses at the trial,
to the same extent as if it were a defendant in the action.
250(16)An insurer may avail itself of subsection (15) notwithstanding that another insurer is defending in the name and on behalf of the insured an action to which its insured is a party.
1968, c.6, s.248; 1974, c.22(Supp.), s.6