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Class Actions Against SABS Insurers Dismissed for Lack of Jurisdiction

In Dorman v. Economical Mutual Insurance Company, 2020 ONSC 4004, class actions were commenced against several insurance companies for allegedly improperly deducting HST from statutory accident benefit payments.

Justice Belobaba agreed with the insurers that the court does not have jurisdiction over the dispute. As a result, the class actions against the insurers were dismissed.

Under section 280 of the Insurance Act, the Licence Appeal Tribunal has exclusive jurisdiction with respect to disputes over the entitlement to statutory accident benefits and the amount of  statutory accident benefits.

The plaintiffs also sued the Financial Services Commission of Ontario for failing to investigate the practices of the insurers after receiving numerous written complaints and for failing to enforce its own guidelines. Justice Belobaba permitted the class actions to proceed against FSCO.