Due Diligence Defence Available to Insured Who Breach “Not Authorized to Drive” Exclusion: Tut v RBC General Insurance Co., 2011 ONCA 644

by Roger Chown | Jan 5, 2012 | Blogs, Cases

In a decision released October 17, 2011, the Court of Appeal has endorsed a due diligence defence for the “not authorized by law to drive” exclusion contained in statutory condition 4 of the Ontario standard automobile policy O.A.P. 1. G2 drivers who drive with alcohol in their blood can avoid the exclusion and are entitled to coverage if they can show that, although their blood alcohol level was not zero, this breach of the conditions of their driver’s licence occurred despite the exercise of due diligence on their part. Similarly, if an owner of an insured vehicle permits a G2 driver whose blood alcohol level is not zero to drive the vehicle, the owner is still entitled to coverage if the owner can show that this occurred despite the exercise of due diligence.