Ontario’s Court of Appeal has deemed the 2002 biting of an outdoor worker by a West Nile Virus-carrying mosquito an accident and has awarded the worker $130,000 of coverage under his policy.
Ryszard Kolbuc was working as a plasterer when he was bitten by the virus-carrying mosquito, rendering him a paraplegic.
At the time of the accident, Justice Karen Weiler wrote in her endorsement, while mosquito bites were common to a person in Kolbuc’s occupation, there had been no reported cases of the West Nile Virus in Ontario.
“It was an unforeseen, unexpected event that was caused by an external source–a mosquito–and falls within the ordinary definition of an accident,” Justice Weiler wrote.
“The cause of the illness was an accidental event.”
While ACE Insurance Company of North America argued that an illness is not an accident, Weiler noted that that proposition standing alone is correct, but that an accident can cause a disease.
The costs of the trial and the appeal were awarded to Kolbuc, as well as the $130,000 of coverage he was entitled to under his policy.
The Institute for Catastrophic Loss Reduction (ICLR) is unveiling a winter storm- and tornado-resistant home in Edmonton, Alberta.
The home retrofit includes: anchoring cabinets, office equipment and bedroom furniture to walls; bracing TV stands, televisions and refrigerators with appliance straps; outfitting the washing machine with armoured water supply hoses; anchoring the hot water heater; installing snow melt cables on roof edges and gutters to prevent the formation of ice dams, among other measures.
On average, the tornado season in Canada ranges from April to October–roughly 160 days, says an ICLR release.
Canada ranks second in the world for tornado occurrences after the United States. According to Environment Canada, in the summer, an average of one tornado every five days is reported in Canada.
“Actions taken to make a home more resilient to natural catastrophes should reflect local hazard risk,” Glenn McGillivray, ICLR managing director, said in a statement.
“The Edmonton area–indeed much of Alberta–represents an active zone for tornado and winter storms.”
This is the fifth year that ICLR has retrofitted an existing home as part of Emergency Preparedness Week. Other retrofits include an Ottawa home made more resilient to earthquakes and winter storms, a Vancouver home protected against earthquakes and a Halifax home was bolstered against hurricanes.
The Co-Operators have donated a Bullard T4 thermal imaging camera to the Winnipeg Fire Paramedic Service, with a contribution from Staying Alive Inc.The imaging device is used to identify sources of heat in burning buildings. The hottest objects are tagged with blue spot colour, while the Super Red Hot feature allows firefighters to see heat levels by colour. Digital zoom, 2X and 4X, provides improved visibility in applications including hazardous materials, wildfire and search-and-rescue operations.
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Chubb Insurance Doubles Identity Fraud Coverage
Chubb Insurance Company of Canada has doubled its identity fraud coverage limit to $50,000 for expenses related to reestablishing the claimant’s identity.
The insurer has also increased its coverage to include expenses accrued from real estate and mortgage fraud.
Both enhancements take effect immediately to customers with Masterpiece Personal Liability and Masterpiece Family Protection policies.
With no extra cost, Chubb is now including coverage for the legal fees, investigation work and other expenses incurred in addressing mortgage or real estate fraud.
“With growing publicity and concern surrounding real estate and other identity-related fraud, we wanted as many clients as possible to receive the benefit right away,” Paul Morrissette, senior vice-president of personal insurance, said in a statement.
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Stan Griffin, president and CEO of the Insurance Bureau of Canada, and Mark Yakabuski, vice-president, federal affairs & Ontario, IBC, presented a cheque for $1,000 to Carolyn Horan, co-chair of the Women In Insurance Cancer Crusade (WICC). The money was raised by Operation Red Nose in Newmarket-Aurora during the last Christmas season. Operation Red Nose is a designated-driver service that offers a way for holiday partiers to get themselves and their cars home safely. The service is free, but charitable donations are welcomed. Carolyn Horan said: “We thank everyone involved for this donation. One hundred percent of the funds donated will go directly to cancer research. WICC is now in its 11th year and has raised more than $3 million across Canada. Our dream is that one day the property and casualty industry will be known for its contribution to cancer research. We are particularly excited by the synergy with Operation Red Nose and we’d like to thank the IBC for choosing WICC as the charity for Operation Red Nose.”
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B.C. documentary targets teens to reduce auto theft, injuries
The Autoplan Broker Road Safety Program (ABRSP) has funded a documentary targeting B.C. high school students in an attempt to decrease auto theft and auto-related injuries.
A partnership of the Credit Union Insurance Services Association, Insurance Brokers Association of B.C. and the Insurance Corporation of British Columbia, the ABRSP funded the production as part of its mandate to educate the public, spark positive road safety behaviour change and reduce auto-related injuries, fatalities and crimes.
Stolen Lives will be shown in B.C. high schools this fall, complete with a companion guide intended to spark discussions about drug use and car theft among the students.
While many documentaries focus on the victim, this one has a different spin–it focuses on the thieves, many of whom began stealing cars to support a drug habit, explains an ABRSP release.
“With about 21,000 vehicles stolen and 180 people killed or injured in crashes involving stolen vehicles in 2005 in B.C., auto crime really is an epidemic in this province,” Sharon Knotts, a broker at Autoplan, said.
“If by sponsoring Stolen Lives and getting it out to schools we can educate youth about the real consequences of stealing cars, maybe we can help stop the cycle of tragedy before it begins.”
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It was hockey, er, shinny time again for the annual Kova Cup held March 29 at Moss Park Armoury in Toronto. Aviva Canada employees and Giffin Koerth Forensic Engineering staff started the fun tradition. In the 2007 Kova Cup, the White Team (a.k.a. Aviva and friends) handily won the championship in a clean sweep, winning the first game 16-7 and the second game by a 6-1 score.
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Crawford & Company (Canada) Inc. announces major shuffle to senior management
Crawford & Company (Canada) Inc. has announced a major shuffle to its senior management with nine appointments. Steve Anderson has been appointed senior vice president, corporate markets and administration. In this role he will oversee the company’s health care management services, risk management services, Claimsalert and auto appraisal services. John McHugh will assume the role of vice president, claims operations-regions, supporting Crawford’s claims services in Atlantic Canada, British Columbia, the Prairies and Quebec. Pat Van Bakel will serve as McHugh’s Ontario counterpart. Greg Smith was named vice president, national programs, and will be charged with (among other responsibilities) redesigning claims intake, file completion and performance measurements. Ken Lloyd has been promoted to assistant vice president, compliance and best practices, addressing such issues as pandemic and disaster planning. He has also been named Crawford’s privacy officer. Brent Hackett has been appointed assistant vice president, catastrophe services and operations, focusing on the continued development of Crawford’s catastrophe team and the support of operational initiatives in the claims services group. Claimsalert’s new assistant vice president is David Nice. Rod McDonald and Reno Daigle were appointed assistant vice presidents of South Western Ontario and North Eastern Ontario, respectively. Rounding out the nine is Jennifer Virley, who has been appointed director, project management.
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BDC Director Retires
After 20 years of service at BDC, Brian K. Hammond, director, risk management and insurance, is retiring.
“During Brian’s time with us, BDC has benefited from his sound advice, and wise counsel on risk management, insurance matters and claim-related problems,” Paul Buron, BDC executive vice-president and chief financial officer, said in a press release.
“In this specialized role, he has earned much deserved respect, both internally and externally, for his technical knowledge and expertise.”
He often served as master of ceremony for company events, in addition to singing, dancing and golfing, Buron added.
“Many who have had the opportunity to work (and play) with Brian will miss his warmth and great sense of humour.”
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The Insurance Bureau of Canada (IBC) has donated $500,000 to fund a research facility designed to study the building of safer homes. “Thanks to the IBC, a typical two-story brick house, similar to many homes found in neighbourhoods across Canada, has been constructed for the sole purpose of being slowly destroyed,” says an IBC press release. Located at the University of Western Ontario’s Faculty of Engineering in London, Ontario, over the next few years, the home will be subjected to a variety of severe weather conditions including simulated winds of up to a Category 5 hurricane (200 mph) that will eventually blow the roof off–all in a controlled environment. Researchers will also study the destructive pathways of mould and water.
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Canadian industry representatives at the Risk and Insurance Management Society’s 2007 Conference in New Orleans gathered at the JW Marriott for cocktails and hors d’oeuvres. Sponsored by CGI Adjusters Inc. and RIMS Canada Council, the gathering allowed people to swap stories and compare notes on the week’s events while sampling culinary treats, and maybe even sipping a glass of wine or Canadian beer.
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The Honourable Order of the Blue Goose International, Ontario Pond held its 7th annual Scotch Nosing on April 5 at the St. Andrew’s Club in Toronto. More than 150 noses attended, including an esteemed panel of judges. Throughout the evening, guest
s sampled some of Scotland’s finest single malts and enjoyed the expertise and humorous delivery of Ed Patrick, one of Scotland’s finest international Scotch whiskey experts and the president of the Companions of the Quaich Whisky Appreciation Society. Proceeds of the event were donated to the Sean Corner Benefit Fund. Max Brugger, wielder of the Goose Quill and keeper of the Golden Goose Egg, was on-hand to tell Sean Corner, who was in attendance, that $30,000 had been raised for his benefit fund from the event. Prior to this announcement, Brugger announced that $12,000 had been raised. At that point, Marcus Snowden of Blaney McMurtry Barristers & Solicitors stood up and announced that, on behalf of the partners in his law firm, he was making a matching donation for the $12,000 raised. Snowden’s generosity sparked a spontaneous session of live donations, quickly bringing the grand total to $30,000. The event was sponsored by: Blakeney Henneberry Murphy Barristers & Solicitors; Giffin Koerth Forensic Engineering & Science; Matrix Loss Adjusters; Service-Master and Blouin Dunn LLP.
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The Risk Management Counsel of Canada (RMC), a national network of law firms that works with the insurance industry, recently held its 10th anniversary celebration in the form of a charity casino event at the Docks’ “Next Level” in Toronto. According to the RMC, a decision was made to turn its annual Toronto spring seminar into a more celebratory social evening. “As we contemplated this notion of a 10-year anniversary, we felt that it would be appropriate to give something back to the insurance industry as well as the community at large which has supported us,” RMC said in a statement. WICC (the Women in Insurance Cancer Crusade) was chosen as natural partner for this event. For each person that accepted their invitation to participate, the RMC donated a certain amount to WICC. Domenic Venturo, a partner with RMC member firm Scott Hall LLP, spoke to the audience about the RMC’s 10th anniversary and decision to turn the event into a benefit for WICC. On behalf of the RMC member firms, Venturo presented Michael Butler, WICC board member with a cheque for $10,000.
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More wishes will be coming true this year, thanks to the 13th Annual Insurance Charity Gala in support of Starlight Starbright Children’s Foundation. More than 400 generous guests attended the black-tie event at the Hilton Toronto, helping to raise nearly $200,000 for the charity, bringing the cumulative total to more than $2 million.
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CIAA attends the U.S. National Association of Independent Insurance Adjusters Annual Conference
The National Association of Independent Insurance Adjusters Annual Conference was held May 9-12, in Horseshoe Bay, TX.
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More than 120 industry veterans attended the 48th Annual Reception of the Quarter Century Club, held May 16 at the Hilton International in Toronto. Emcee John Cherrie welcomed members and presided over the “roast” of “business promoter extraordinaire” Ford Blow. Ford started his nearly 40-year insurance industry career at the Halifax Insurance Company and has spent a large part of his career with Cunningham Lindsey, where he is now the Vice President of Business Development.
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The Ontario Risk and Insurance Management Society (ORIMS) recently held its annual general meeting in Toronto, followed by a dinner where Erin Magilton-Morneau took over the presidency position. Magilton-Morneau, director of risk and insurance management for Manulife Financial, served as vice president on the 2006-2007 ORIMS board of directors.
She takes over from Bruce Tainsh, manager of insurance and risk management at Sun Life Assurance Company of Canada.
In her acceptance speech, Magilton-Morneau thanked Tainsh for his dedication to the organization over the past year, and spoke of her enthusiasm for helping to organize the 2008 national conference to be held in Toronto. Entertainment for the evening was “Funk n’ Crawford” Improv Comedy.
There is a 75% chance the 2007 hurricane season will be above normal, according to the NOAA [National Oceanic & Atmospheric Administration].
An average season is one in which there are 11 storms, six of which become hurricanes and two of which become major [Category 3-5] hurricanes.
“For the 2007 Atlantic hurricane season, scientists predict 13 to 17 named storms, with seven to 10 becoming hurricanes,” said NOAA administrator Conrad C. Lautenbacher, a retired Navy vice admiral and undersecretary of commerce for oceans and atmosphere. Of these hurricanes, Lautenbacher said, “three to five could become major hurricanes of Category 3 strength or higher.”
According to the NOAA, the “on-going multi-decadal signal [which describes the set of ocean and atmospheric conditions that spawn increased hurricane activity], warmer-than-normal sea surface temperatures in the Atlantic Ocean and the El Nio/ La Nia cycle,” are all factors increasing the severity of the 2007 hurricane season.
The severity of the season is largely based on whether El Nia forms, the NOAA notes. If it does form, its strength will play a factor in whether storm activity will be in the upper end (or beyond the upper end) of the predicted range.
Even if El Nia doesn’t form, it is expected that we will still see a higher than normal season this year, the NOAA predicts.
“With expectations for an active season, it is critically important that people who live in East and Gulf Coastal areas as well as the Caribbean be prepared,” Bill Proenza, NOAA National Hurricane Center director, said. “Now is the time to update your hurricane plan, not when the storm is bearing down on you.”
The Colorado State University’s Department of Atmospheric Sciences, also found that the 2007 hurricane season is likely going to be “very active,” with landfall probabilities well above their long-period averages.
This is largely due to the rapid dissipation of El Nio conditions, according to researchers at the University.
The researchers say the probability of at least one major (Category 3-5) hurricane reaching landfall on the U.S. coastline is 74%, compared to an average of 52% for the last century.
“We estimate that 2007 will have about nine hurricanes (average is 5.9), 17 named storms (average is 9.6), 85 named storm days (average is 49.1), 40 hurricane days (average is 24.5), five intense (Category 3-5) hurricanes (average is 2.3) and 11 intense hurricane days (average is 5),” Dr. William Gray writes.
Researchers are hesitating to link the potentially active season to global warming or climate change, explaining that Atlantic hurricanes go through “multi-decadal cycles.”
“This active cycle is expected to continue for another decade or two, at which time we should enter a quieter Atlantic major hurricane period like we experienced during the quarter century periods of 1970-1994 and 1901-1925,” Gray predicts.
The Supreme Court of British Columbia recently awarded a widow $6.4 million, $4.2 million of which was for the potential loss of support due to her husband’s death in a 2002 car accident.
In July, 2002 Barry Carter was driving a van owned by his employer, a cable company, when he went into hypoglycaemic shock and lost consciousness, veered into oncoming traffic and struck the vehicle that Dr. Donald Johnson, a laser eye surgeon, was a passenger in.
Johnson died as a result of the collision.
Justice Harry Slade awarded Johnson’s widow $4.2 million for future losses, including pre-retirement family consumption and savings.
While the court heard that Johnson experienced financial issues prior to his death, Justice Slade was convinced that he would not only have bounced back, but likely expanded his business as a successful laser eye surgeon.
“An increase in Dr. Johnson’s time expended in surgery that would yield a substantial increase in income was a strong possibility, more at the level of probability,” Justice Slade wrote in his decision.
“There was also a realistic potential for earning business income based on an ownership interest.”
While Johnson did not have any shares in the company that owned and operated the clinic in which he worked at the time of his death, Justice Slade decided that was likely due to potential difficulty with his creditors, but that would have likely changed.
“There is no evidence of any established plan to develop and take an ownership interest in any clinics,” he wrote.
“There is, however, evidence that would support a finding of a realistic possibility that Dr. Johnson would, at some future time, have sought to capitalize on his reputation and experience by methods other than the personal provision of surgical services.”
A recent B.C. Supreme Court jury decision in Rallahan v. Siu and Litt reinforces the need for claimants to provide complete and accurate information when making a claim with auto insurers.
The court ruled Balwinder Singh Rallahan failed to provide medical history to the Insurance Corporation of British Columbia (ICBC) when filing a claim.
“It’s vital that claimants understand that failing to accurately inform their doctors and ICBC about their medical history can affect their credibility in the eyes of the court,” Joseph P. Cahan, lawyer for Alexander, Holburn, Beaudin & Lang representing ICBC, said in a press release.
Rallahan, a taxi cab driver, was working when he was involved in accidents in both 2001 and 2002. He filed a claim and had his car repaired and received medical benefits. In addition, he claimed $200,000 in lost wages and a further $50,000 for pain and suffering.
However, it became apparent during the trial that he had failed to provide information surrounding a previous related injury.
Because of this, he received only $1,000 for the first accident and nothing for the second. Since the jury awarded less than what the ICBC previously offered, Rallahan may be required to pay ICBC’s court costs.
“ICBC needs its customers to provide complete and accurate information in a timely fashion when making a claim,” Sue Carle, ICBC vice-president, claims services, said. “Without the complete picture, ICBC cannot accurately assess the claim and provide fair compensation to the claimant. Paying too much for claim settlements is unfair to all ICBC customers who pay premiums, but paying too little is unfair to claimants.”
The Law Society of Upper Canada is now responsible in law for regulating independent paralegals, including Statutory Accident Benefits Schedule (SABS) representatives.
FSCO has been consulting with the law society on how the transition to paralegal regulation by the law society will take place.
Currently, SABS representatives are required under the Insurance Act to file a declaration with the Financial Services Commission of Ontario (FSCO) confirming they have met the requirements of the Insurance Act and agree to adhere to the Code of Conduct issued by the Superintendent of Financial Services.
“The requirements that SABS representatives comply with regulations under the Insurance Act and file certain information with FSCO will continue after May 1, 2007,” FSCO noted in a posting on its web site. “FSCO will continue to monitor and enforce compliance with these regulations for as long as they remain in force.”
Pending regulatory changes by the Ontario government, this will remain the case until May 1, 2008, FSCO noted.
As of May 2008, the law society will become fully responsible for the regulation of SABS representatives.
Complaints concerning the actions of paralegals arising on or after May 1, 2008, will be directed to the Law Society, although FSCO will retain jurisdiction in respect of contraventions of the Insurance Act and its regulations, including unfair and deceptive acts or practices.
From May 1, 2007, to Oct. 31, 2007, the law society will accept applications for paralegal licences from paralegals already practicing in permitted areas of practice. These will be known as “grandparent” applications.
The grandparent application will apply to paralegals that have worked full time providing legal services for at least three years. Eligible applicants will be required to pass a licensing exam to be given in early 2008.
FSCO said it expects the law society to be issuing paralegal licences by May 1, 2008.
Also, changes will be made to the dispute resolution forms to properly identify licensed paralegals involved in a claim.
The Law Society will be considering “transitional” applicants who have less than three years work experience as a paralegal and have met certain training criteria.
Licence application forms as well as information on the rules, requirements and procedures are available at the Law Society website at www.lsuc.ca.
The Alberta Civil Trial Lawyers Association (ACTLA) has officially started its Charter challenge of the Alberta government’s automobile insurance minor injury policy in the Court of Queen’s Bench (Calgary) before Mr. Justice Neil Wittmann.
ACTLA President Arthur Wilson, Q.C. says in a press release that the association wants the court to determine whether the minor injury policy contravenes Section 15 of the Charter, which prevents discrimination against a group of people based on disability.
Wilson said the trial, which started Apr. 10, is expected to last five weeks, with a decision likely this fall.
At issue is the policy that sets a ceiling of $4,000 on the amount of damages courts can award for soft-tissue injuries incurred by the victims of automobile collisions.
“It is our association’s contention that this ceiling unfairly discriminates against victims of automobile collisions because it separates a distinct group of people and treats them differently from others who have also had the misfortune to be injured through no fault of their own,” Wilson said. “We have seen too many cases since the government changed its policy in 2004 where victims have suffered and will continue to suffer because of the current situation.”
Wilson said his association agrees with the province’s right to make the rules around automobile insurance or any other matter, but adds that the Canadian Constitution states those rules must take into consideration the Canadian Charter of Rights and Freedoms.
“The reason our legal system works so well is because one group can make a decision and another group can straightforwardly question or challenge that decision,” Wilson said. “The system recognizes that there are no cookie-cutter solutions.
“It is our duty as responsible members of the legal profession to help ensure government policies are based solidly in law and applicable to all Albertans.”
At US$15.9 billion, insured catastrophe damage in 2006 represented the third-mildest loss year since 1990, according to a Swiss Re sigma report [No 2/2007]. Of these insured losses worldwide, natural catastrophes accounted for US$11.8 billion of the total. Storms caused insured losses of US$8.4 billion, which represented the most costly damage category.
The sigma report notes the rise in insured losses over the past decades is attributable mainly to weather-related natural catastrophes. “Whereas in the 1970s, the claims burden on property insurers due to severe storms, floods, etc. was still around US$2.9 billion per year, in the 1980s, it rose to US$5.7 billion and in the 1990s reached US$18.2 billion.”
Since 2000, the report adds, the average total of insured claims related to natural catastrophes has been US$30.4 billion per year. “The upward curve in insured losses reflects the trend towards an increasing concentration of property values, especially in highly-exposed regions,” the sigma report says. “Going forward, the loss situation is likely to be aggravated by the effects of global warming, which is almost certainly mainly driven by human activity.”
March marked National Fraud Prevention Month, and the Insurance Bureau of Canada (IBC) released information throughout the month to help educate about and prevent this type of crime.”Insurance fraud is big business,” said Rick Dubin, vice-president, investigations at the IBC.
“It is a low-risk, high-reward crime that costs Canadians about $3 billion per year. However, there are steps that Canadians can take to recognize it. Report it. Stop it.”
One of the most costly forms of insurance fraud is staged auto collisions, the IBC reports. Also referred to as a ‘swoop and squat,’ a vehicle participating in the fraud suddenly speeds up and cuts off a ‘squat’ vehicle (also participating in the fraud), forcing the ‘squat’ vehicle to slam on its brakes.
Ideally for the fraudster, an inncocent victim driving behind the ‘squat’ vehicle does not have enough time to brake, thus slamming into the back of the ‘squat’ vehicle. The innocent driver would thus look like the at-fault driver for failing to keep a proper distance. Usually, everyone who is in on the fraud (those in the ‘squat’ vehicle) claims some sort of injury, and makes an accidents benefits claim.
