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CASE CENTRE · PERSONAL INJURY · SABS LIMITATION PERIOD

The Personal Insurance Company v. Tagoe

2024 ONCA 894 Court of Appeal for Ontario December 11, 2024
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In short: The Court of Appeal for Ontario confirmed that the discoverability principle applies to income replacement benefit disputes. An insurer's early refusal, given while the claimant was still working, did not necessarily start the two-year clock for a later claim.

The Facts

Mr. Tagoe was injured in a collision on April 28, 2016 and went back to work two days later. In May 2016 he submitted benefit forms, including a disability certificate, and the insurer refused income replacement benefits because he was working. In August 2017 he had surgery and stopped working, and in April 2018 he had a stroke while recovering. In December 2019 he provided a second disability certificate that met the benefit's test. In June 2020 the insurer maintained its refusal, relying on the 2016 letter and arguing that the two-year time limit to dispute it had long expired. The Licence Appeal Tribunal agreed with the insurer. The Divisional Court reversed that decision, holding that the Tribunal should have asked whether the claim was discoverable in 2016, and the insurer appealed.

What the Court Decided

The Court of Appeal dismissed the insurer's appeal. It followed its earlier decision in Tomec, which held that the limitation period for a benefit dispute can be postponed by discoverability, and applied the same reasoning to income replacement benefits. The Court agreed that the Tribunal had erred by not considering whether the claim could have been discovered in May 2016, while he was still working and was not yet eligible. It also agreed that the evidence did not show that he had in fact applied for the benefit at that time. The matter was sent back to the Tribunal to decide whether he is entitled to the benefit under the relevant provisions of the Schedule. The Court did not decide that he is entitled to benefits, and it did not remove the two-year period; it confirmed that the period does not necessarily begin on an early denial given before the claim could be pursued.

Many injured people try to work, fail, and later become unable to. This decision makes clear that an early refusal does not always close the door on a later claim.

Does This Affect You?

  • ✓Your insurer refused income replacement benefits early on because you went back to work, and your condition later changed.
  • ✓You were told two years ago that you did not qualify and are unsure whether you can still challenge that decision.
  • ✓A denial letter you received was based on your situation at the time, not on your later circumstances.

Key Takeaways

  1. The two-year deadline to dispute a refused accident benefit is not always counted from the date of an early refusal.
  2. Whether a claim was discoverable depends on the claimant's situation and what they knew or reasonably should have known.
  3. The decision sends the case back for a decision on entitlement; it does not guarantee benefits and does not abolish limitation periods.

Frequently Asked Questions

Does this mean the two-year limit no longer applies to income replacement benefits?
No. The limit still applies. The Court held that it is subject to discoverability, so the clock does not necessarily run from an early refusal if the claimant could not yet have pursued the benefit.
Is a person with an early denial automatically entitled to benefits now?
No. In this case the matter went back to the Licence Appeal Tribunal to decide entitlement. A claimant still has to prove they meet the test for the benefit.