Auto insurers that paid catastrophically impaired accident victims attendant care benefits prior to a regulatory clarification in 2019 do not have to pay provincial sales tax above and beyond the benefit limits outlined in law, the Court of Appeal for Ontario has decided.
The province’s accident benefits law sets out the maximum amount insurers must pay for attendant care in catastrophic injury cases — a limit of $6,000 per month, up to a maximum of $1 million.
Ontario’s harmonized sales tax (HST) is included within these limits, the appeal court decided, finding the industry was correct in how it was paying out the HST before the regulations changed in 2019.
In Dominion of Canada General Insurance Company v. Ridi, Filippo Ridi was catastrophically impaired as a result of a car accident on Mar. 21, 2014 and became eligible for attendant care benefits.
At the time,…