When an Ontario motor vehicle accident involves claimants with connections to multiple auto insurance policies — their own policy, a household member’s policy, and the at-fault driver’s policy — a priority dispute arises over which insurer is obligated to pay the claimant’s accident benefits. These disputes can delay benefit receipt for months while insurers argue among themselves.
Ontario’s SABS establishes a statutory hierarchy for paying accident benefits. For vehicle occupants, the priority order is generally: the insurer of the vehicle the claimant was occupying; the insurer of any other vehicle involved; the insurer of a vehicle owned by the claimant; the insurer of a vehicle owned by a spouse or dependent; and the Motor Vehicle Accident Claims Fund as insurer of last resort.
Priority disputes cannot delay your benefits: Under SABS s. 268(3), when priority is disputed, the insurer first in priority must begin paying benefits within a specified period while the dispute is resolved. Do not agree to suspend your application while insurers negotiate. Submit your application to the insurer you believe is in priority and let the insurers resolve their own dispute — your benefits cannot be withheld while they do so.
Pedestrians and cyclists who do not own vehicles and are not household members where any person owns a vehicle are entitled to accident benefits from the at-fault driver’s insurer. If the at-fault driver is uninsured or unidentified, the MVAC provides a last-resort source of accident benefits. These claimants have among the most vulnerable priority positions and most need prompt legal advice to ensure their claim is filed against the correct insurer.