By: Chris MacDonald
Priority disputes arise when multiple insurers could be responsible for paying accident benefits under the Statutory Accident Benefits Schedule (SABS). In Ontario, these disputes determine which insurer is on the hook first, often leading to protracted negotiations or arbitration hearings. As 2025 brings amendments to various insurance regulations, understanding how priority rules apply can streamline the claims process for injured parties and insurers alike.
Traditionally, priority followed a hierarchy: if you had a policy on the vehicle involved, that insurer was primarily responsible. If not, the insurer of any vehicle you own, or other household policies, might then be considered [Insurance Act, s. 268]. However, with evolving coverage models—especially as more drivers opt for optional benefits or switch insurers more frequently—disputes about who pays first have become increasingly common.
For accident victims, these disputes can delay access to much-needed benefits, such as income replacement and medical rehabilitation coverage. While insurers argue over liability, claimants can become stuck in a bureaucratic limbo. To safeguard your interests, promptly notify all possible insurers and be transparent about any household vehicle policies. Providing complete documentation from the outset can reduce administrative hold-ups.
For insurance professionals, the key lies in promptly initiating priority investigations and cooperating with other insurers. Delayed or evasive action can lead to penalties and arbitration costs. Keeping abreast of updated regulations and industry best practices helps insurers resolve issues more efficiently and maintain customer satisfaction.
Whether you’re an injured claimant or an insurance stakeholder, recognizing the complexities of priority disputes is paramount in 2025’s shifting insurance landscape. At times, the quickest route to resolution may involve mediation or arbitration before the Licence Appeal Tribunal (LAT). Seeking experienced legal counsel ensures that disputes are handled correctly from the start, minimizing delay and protecting the rights of all involved.
