Background:

• Plaintiff: Mari-Lynn Welyk.
• Defendant: Intact Insurance Company under SEF 44 endorsement (provides coverage for injuries caused by underinsured or unidentified drivers).
• Welyk was involved in a motorcycle accident where she was struck due to the actions of an unidentified vehicle (a black truck that fled the scene). This resulted in serious injuries.
• The unidentified truck hit a fellow rider, who was then pushed into Welyk’s motorcycle, causing her injuries.

Key Issues:

1. SEF 44 Coverage: The insurer, Intact Insurance, sought summary dismissal of Welyk’s claim under her SEF 44 policy, citing the Alberta Court of Appeal's precedent in Funk v. Wawanesa Mutual Insurance Company (2018). In Funk, coverage required direct physical contact between the insured’s vehicle and the unidentified vehicle.

2. Legislative Change: The court considered section 545(1) of the Insurance Act (introduced after the Funk case), which allows courts to override policy terms deemed unjust or unreasonable.

Court’s Decision:

• The judge found differences between Funk and the present case:
  • Unlike in Funk, where there was no contact, Welyk’s injuries resulted from a chain collision initiated by the unidentified truck.
  • Section 545(1) provides courts discretion to intervene if a policy term is unjust, which was not applicable in Funk.
• The court denied the insurer's application for summary dismissal, ruling that these issues warrant a full trial to assess the implications of section 545(1) on the SEF 44 endorsement.

Outcome:

• The action by Welyk against Intact Insurance will proceed to trial.
• Standard costs will apply unless further submissions on costs are requested by either party.
• No monetary award specified.