In Abbas v. Esurance Insurance Company of Canada, the Alberta Court of Appeal recently confirmed that the “fraudulent claims rule” is still alive and well in Alberta. The Court resolutely stated that “an insured who files a fraudulent proof of loss under that circumstance is not entitled to a single dime from the insurer.”
After a motor vehicle accident, Mr. Abbas made a claim to his insurer for Section B and SEF 44 benefits. In doing so, he lied about his income in support of his claim for Section B benefits and as a result, the insurer denied coverage for both the Section B and the SEF 44 benefits. Although Mr. Abbas admitted he lied, he argued that the lie should not affect his entitlement to SEF 44 benefits since his income was not relevant to that claim.