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Fraud – Goods Purchased with a Counterfeit Cheque – Does an “All Risk” Insurance Policy Cover Property Losses Due to Fraud?

July 17, 2017

6916643 Canada Inc. v. Intact, compagnie d’assurances, [2017] QCCA 660

6916643 Canada Inc. (“Canada Inc.”) filed an application for leave to appeal following a decision dismissing its claim for indemnification for losses incurred in the context of fraud.

The Facts

Canada Inc. accepted a certified cheque for the sale of paintings, only to find out that the cheque was counterfeit. Initially, Canada Inc. instituted proceedings against Intact, compagnie d’assurances (“Intact”) in order to be indemnified for the value of the lost property, i.e., $14,150, under the terms of the insurance policy. For its part, Intact argued that unlike theft, the risk of fraud was not covered.

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