Binding Agreement

A consumer contacted our Office regarding an insurer’s change of position.

The client had been negotiating with the insurer concerning the compensation to which he was entitled following a motor vehicle accident. He ultimately accepted the offer made by the insurer.

Subsequently, the insurer reversed its position, claiming that an error had been made and that the offer should have been for a lower amount. The client attempted to persuade the insurer to honour the original agreement, but these efforts were unsuccessful.

Our Office intervened and took the position that a binding agreement had been reached between the parties and that the insurer could not unilaterally alter its terms.

The insurer ultimately agreed to reinstate the originally agreed-upon amount.