Dominion v. Ridi, 2021 ONSC 3707
Precedent setting Divisional Court appeal decision confirming that for accidents prior to June 3, 2019, HST is payable as an incurred attendant care expense within the policy limits.
In the initial LAT Hearing, the Adjudicator decided that HST is not a “reasonable and necessary” expense and therefore was not subject to the $6,000 limit in s.19(3) of the Schedule or the policy limit of $1,000,000. He concluded that the insurer has to pay it as a tax, which the Adjudicator found was distinct from an expense.
The Divisional Court concluded: "The problem with this reasoning is that the tax legislation does not impose an independent obligation on the insurer to pay HST and s. 14 of the Schedule only requires the insurer to compensate the insured for attendant care benefits as they are defined under s. 19: “reasonable and necessary expenses.” Therefore, if the HST is not a “reasonable and necessary expense” under the Schedule, the Schedule does not obligate the insurer to pay it."