Ontario Court Of Appeal Upholds Damages for Mental Distress Against Motor Vehicle Insurer
The Ontario Court of Appeal has upheld a claim for damages of mental distress caused by the failure of Echelon Insurance to properly adjust a claim arising from a motor vehicle collision.
“People purchase motor vehicle liability policies to protect themselves from financial and emotional stress and insecurity. An object of such contracts is to secure a psychological benefit that brought the prospect of mental distress upon breach within the reasonable contemplation of the parties at the time the contract was made. As an insured person entitled to call on the policy, Ms. McQueen was entitled to that peace of mind and to damages when she suffered mental distress on breach.
For commentary see: http://www.lawtimesnews.com/Focus-On/Claim-for-mental-distress-puts-pressure-on-insurance-companies