Canadian Underwriter

SGI added to list of insurers being sued for auto deductibles

April 1, 2002   by Canadian Underwriter

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Saskatchewan’s public insurer is the latest addition to class action lawsuits being filed against insurers following the McNaughton v. Co-operators decision.
Since the Supreme Court refused to hear Co-operators appeal of an Ontario court decision that says policyholders should be refunded their deductible if their car is written off after an accident and then sold for salvage, new suits have been filed against a number of insurers. Saskatchewan Government Insurance (SGI) is the first public insurer to be added to the growing list.
Damages are being sought in the amount of $20 million by three firms: McNally Cuming Allchurch (Calgary), Koskie Minsky (Toronto) and Klein Lyons (Vancouver and Toronto). These are the same firms who recently announced suits against insurers in Ontario and Alberta to retrieve policyholder deductibles.
Although the individual claims are low in value, given the large number of potential litigants, the total value will likely be in the millions.

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