MPI denies coverage after car stolen twice

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This article was published 01/08/2023 (824 days ago), so information in it may no longer be current.

A woman is suing Manitoba Public Insurance after it denied coverage for her twice-stolen vehicle, claiming the Crown corporation failed to tell her to have keys reprogrammed after the spare was pilfered in the first theft.

The statement of claim, filed July 24 in the Court of King’s Bench by Winnipeg-based law firm Cochrane Saxberg LLP, on behalf of Vienna McIvor, is seeking a $50,000 judgment, plus damages to be determined by a judge and court costs.

MPI has not filed a statement of defence and the lawsuit’s allegations have not been proven in court.

McIvor, described in the court papers as a University of Manitoba student and recent mother of twins, had her leased 2019 Chevrolet Equinox first stolen in the winter of 2020.

The vehicle was taken from her assigned parking stall at her residence, but quickly found by Winnipeg police after it was involved in a collision.

McIvor advised the public auto insurance company her vehicle’s spare key was missing after the theft, the court papers say.

The vehicle was repaired by MPI, according to the claim, and returned to her.

According to the claim, the car key she had was not recoded, nor was she given a new spare key.

Modern vehicles use keys with embedded electronic chips programmed to match with the vehicle.

McIvor alleges in the court documents MPI never took steps to recode the vehicle’s key or replace the spare and failed to advise her failing to do so would affect her ability to insure the vehicle.

Around Sept. 4, 2021, McIvor’s vehicle was again stolen from her parking stall.

She reported the theft to police and MPI. Police located the vehicle, which had been damaged by fire and rendered inoperable, in the Anola area about a week later.

According to the court documents, McIvor spoke with an MPI case adjuster by phone Sept. 9.

The court papers claim MPI then conducted an investigation, stating in a letter in January 2022 McIvor’s coverage was denied for an unspecified “willfully false statement.”

The court claim says MPI has refused to provide further details about the alleged false statement. The court documents assert she was wrongfully denied coverage owed to her.

McIvor claimed she has continued making payments on the vehicle’s lease, but has had to rent another car.

As a result of the denied coverage, the lawsuit claims, she has not been able to pay for repairs to the Chevrolet, nor purchase another vehicle.

The claim says McIvor has suffered general damages as a result of the denied coverage, causing her undue hardship as she lost her family vehicle within three months of the birth of her twins. Further, it claims, she has had to spend out-of-pocket on alternate transportation.

MPI spokeswoman Kari Dykes said the Crown corporation can’t comment on matters before the courts.

erik.pindera@freepress.mb.ca