A long running dispute between Chubb and Zurich reached the Ontario Court of Appeal over a basic feature of the province’s accident benefits system: the first insurer approached by an injured person cannot simply refuse the claim and leave the claimant to find the correct insurer.
The claimant was injured while driving a rental vehicle. She initially approached Chubb. Chubb denied responsibility and did not notify Zurich within the regulatory 90 day period. Zurich later began paying benefits and the insurers entered a priority dispute.
Ontario’s regulation governing disputes between insurers is designed to keep those disputes away from the injured person. The first insurer receiving the application must pay benefits while responsibility is sorted out. An insurer that says another insurer should pay must also give the required notice within the prescribed period.
An arbitrator ultimately required Chubb to bear the benefits obligation. An appeal judge overturned that result and treated Chubb and Zurich as sharing responsibility.
In Chubb Insurance Company of Canada v. Zurich Insurance Company, 2026 ONCA 302, the Court of Appeal allowed Zurich’s appeal and restored the arbitrator’s decision. The Court rejected the idea that the two insurers could simply be treated as equally responsible without giving effect to the consequences of Chubb’s failure to follow the regulatory process.
The decision is an insurance administration case as much as a priority case. The regulation is structured around continuity of benefits. The first insurer’s obligation to respond is not merely a procedural courtesy between insurance companies. It protects the claimant while insurers resolve responsibility among themselves.
For claims operations, the practical significance is substantial. A coverage or priority concern does not necessarily justify refusing to adjust the claim. Where the statutory regime says pay first and dispute later, missing the required steps can change the ultimate financial allocation between insurers.
The Court of Appeal allowed Zurich’s appeal and reinstated the arbitration award requiring Chubb to pay the benefits.