The Alberta Superintendent of Insurance (ASI) issued a guidance note at the start of the year, indicating that the superintendent has a number of expectations regarding insurers’ handling of claims in a timely manner. It also educates consumers about the approaching limitation date for the Jasper wildfire that occurred in July 2024.
The province’s Insurance Act sets the timeline for commencement of a legal action against an insurer at two years from the date the insured person knew or ought to have known the loss or damage occurred. (The section does not apply to automobile insurance contracts or hail insurance contracts.)
The guidance, Two-year statutory limitation on Jasper wildfire property insurance claims, is intended to advise clients and insurers of the superintendent’s expectations regarding voluntary extensions of the two-year limitation.
“Insurers are expected to have claims handling processes in place that facilitate timely resolution of claims, and most property insurance claims are expected to settle before the limitation date,” the guidance states.
It notes, however, that the losses incurred in the 2024 Jasper wildfire may take longer to resolve. “In such cases, each insurance company is expected to have in place a process to review requests for extensions of the limitation date,” they write, adding that the fair treatment of customer principle that claims will be examined diligently and fairly settled using a simple and accessible procedure applies. They also say an insurer’s dispute resolution procedures must follow “a balanced and impartial approach.”
The guidance then counsels customers on what should occur and the steps they must take if their claim is still open as the limitation date approaches. “If your insurer provides an extension to the two-year limitation date, ensure the extension is provided in writing,” they advise. “If the insurer is unwilling to grant an extension, you can use the company’s complaint resolution process to request that the insurer reconsider its position.”
They add: “If the complaint resolution process results in no change to the insurer’s position, you should seek legal advice about complying with the limitation date, well before it passes.”
