Tribunal Denies Benefits to Motorcyclist for Insurance Fraud Involvement

In Ontario, the Licence Appeal Tribunal (LAT) has ruled against Cole Prasow, a motorcyclist involved in a collision in April 2021, stating he is not eligible for accident benefits due to knowingly operating his motorcycle without valid insurance. Despite owning a 2010 Kawasaki motorcycle and a Subaru Forester with valid insurance, Prasow was in the process of buying a 2021 Kawasaki motorcycle at the time of his accident. The tribunal found the insurance for the 2010 Kawasaki, acquired through an unconventional cash transaction with an unknown individual named Kyle in a parking lot, to be invalid.

Prasow pursued auto accident benefits from Unifund Assurance Company, as indicated on his insurance card, but the insurer found no policy matching his card’s details. He then approached RSA Insurance Company, his insurer, which also denied him benefits due to the lack of valid insurance for the motorcycle he was operating during the accident.

Claiming to be a fraud victim, Prasow appealed to the LAT to overturn RSA’s decision. However, the tribunal highlighted that the method of obtaining the motorcycle’s insurance should have clearly signaled its illegitimacy to Prasow, considering his existing valid auto policy obtained through proper channels. The LAT’s decision emphasized that the circumstances of the insurance purchase—especially the informal setting and lack of follow-up documentation—made it evident that the policy was not secured properly.

Prasow argued that the acceptance of his insurance by the dealership and the Ontario Ministry of Transportation to register his motorcycle indicated the insurance’s legitimacy. Nonetheless, the LAT countered that neither the ministry nor the dealership is responsible for verifying the validity of an insurance policy. The tribunal concluded that Prasow’s actions did not constitute a good faith belief in the policy’s validity but rather a misguided attempt to fulfill vehicle registration requirements.