Acts and Regulations

I-12 - Insurance Act

Section 257
Disposition versions

Full text
Accident insurance benefits, payment constitutes release, benefits under more than one contract
257(1)Where in a contract an insurer provides accident insurance benefits in respect of the death of or injury to an insured person arising out of an accident involving an automobile, the insurance applies only in respect of,
(a) any person who sustains bodily injury or death while driving or being carried in or upon or entering or getting on to or alighting from or, if not the occupant of another automobile, as a result of being struck by an automobile owned by the insured named in the contract in respect of which insurance of the class mentioned in paragraph (a) of the definition of “automobile insurance” in section 1 is provided under the contract, and
(b) the insured named in the contract and his or her spouse and any dependent relative residing in the same dwelling premises as the named insured who sustains bodily injury or death while driving or being carried in or upon or entering or getting on to or alighting from or as a result of being struck by any other automobile that is defined in the policy for the purposes of the insurance.
257(2)Where an insurer makes a payment under a contract of insurance to which subsection (1) refers, the payment constitutes, to the extent of such payment, a release by the insured person or his personal representatives of any claim that the insured person or his personal representatives or any person claiming through or under him or by virtue of the Fatal Accidents Act may have against the insurer and any other person who may be liable to the insured person or his personal representatives if that other person is insured under a contract of the same type as is specified in subsection (1), but nothing in this subsection precludes an insurer from demanding, as a condition precedent to payment, a release to the extent of the payment from the person insured or his personal representatives or any other person.
257(3)Subject to subsection (5), the insurance mentioned in paragraph (1)(a) is a first loss insurance, and any other automobile insurance of the same type available to the injured person or in respect of a deceased person is excess insurance only.
257(4)Subject to subsection (5), the insurance mentioned in paragraph (1)(b) is excess insurance over any other automobile insurance of the same type available to the injured person or in respect of a deceased person.
257(5)Where a person is entitled to benefits under more than one contract providing insurance of the type mentioned in this section, he or his personal representative or any person claiming through or under him or by virtue of the Fatal Accidents Act may recover only an amount equal to,
(a) one benefit, if the benefits under the contracts are of the same limit, or
(b) the highest benefit, if the benefits under the contracts are not of the same limit.
1968, c.6, s.255; 1971, c.41, s.11
Limited accident insurance
257(1)Where in a contract an insurer provides accident insurance benefits in respect of the death of or injury to an insured person arising out of an accident involving an automobile, the insurance applies only in respect of,
(a) any person who sustains bodily injury or death while driving or being carried in or upon or entering or getting on to or alighting from or, if not the occupant of another automobile, as a result of being struck by an automobile owned by the insured named in the contract in respect of which insurance of the class mentioned in paragraph (a) of the definition of “automobile insurance” in section 1 is provided under the contract, and
(b) the insured named in the contract and his or her spouse and any dependent relative residing in the same dwelling premises as the named insured who sustains bodily injury or death while driving or being carried in or upon or entering or getting on to or alighting from or as a result of being struck by any other automobile that is defined in the policy for the purposes of the insurance.
257(2)Where an insurer makes a payment under a contract of insurance to which subsection (1) refers, the payment constitutes, to the extent of such payment, a release by the insured person or his personal representatives of any claim that the insured person or his personal representatives or any person claiming through or under him or by virtue of the Fatal Accidents Act may have against the insurer and any other person who may be liable to the insured person or his personal representatives if that other person is insured under a contract of the same type as is specified in subsection (1), but nothing in this subsection precludes an insurer from demanding, as a condition precedent to payment, a release to the extent of the payment from the person insured or his personal representatives or any other person.
257(3)Subject to subsection (5), the insurance mentioned in paragraph (1)(a) is a first loss insurance, and any other automobile insurance of the same type available to the injured person or in respect of a deceased person is excess insurance only.
257(4)Subject to subsection (5), the insurance mentioned in paragraph (1)(b) is excess insurance over any other automobile insurance of the same type available to the injured person or in respect of a deceased person.
257(5)Where a person is entitled to benefits under more than one contract providing insurance of the type mentioned in this section, he or his personal representative or any person claiming through or under him or by virtue of the Fatal Accidents Act may recover only an amount equal to,
(a) one benefit, if the benefits under the contracts are of the same limit, or
(b) the highest benefit, if the benefits under the contracts are not of the same limit.
1968, c.6, s.255; 1971, c.41, s.11