Laches Does Not Apply to Loss Transfer Claims
In Intact Insurance Company of Canada v. Lombard General Insurance Company of Canada, 2015 ONCA 764, the Court of Appeal recently confirmed that the equitable doctrine of laches does not apply to loss transfer claims.
This means that there is no legislated limitation period for loss transfer indemnification claims made after January 1, 2004 (yes, 2004).
As result of this decision, the legislature may take steps to amend O. Reg. 668 to include a limitation period for the service of a Notice of Loss Transfer and perhaps a two year limitation period to serve a Loss Transfer Request for Indemnification from the date that the underlying accident benefits claim exceeds the $2,000 deductible.
In the meantime, insurers will initiate and respond to further "stale dated" claims for loss transfer.