The much awaited SCC decisions regarding what limitation periods apply under the Insurance Act are now available in the 2 cases: KP Pacific Holdings Ltd. v. Guardian Insurance Co. of Canada, 2003 SCC 25, [2003] S.C.J. No. 24 (QL) and Gore Mutual Insurance Co. v. Churchland, 2003 SCC 26, [2003] S.C.J. No. 25 (QL). Both cases were decided by a 9 member panel of the court. The Chief Justice wrote the decisions.
In relatively brief reasons for judgment on both appeals, Chief Justice McLachlin ruled that multi-peril policies are governed by Part 2 of the Insurance Act R.S.B.C.1996, c.226 and that s.3(a) of the Act precludes insurers from contractually incorporating a shorter limitation period from that set out in s. 22(1) of the Act. In essence the court determined that the applicable limitation period for any claim for the recovery of money payable under a multi-peril policy of insurance is one year after the furnishing of reasonably sufficient proof of a loss or claim under the contract.