What is the reasonableness of a commercial insurance contract where an employer prohibits the use of an employee’s personal injury insurance?
British Columbia, Canada
The following excerpt is from AllWest Insurance v. Mark, Wong and Yee, 2004 BCSC 1834 (CanLII):
In terms of the reasonableness of the contracts, the test requires that: 1. The employer have a legitimate proprietary interest which it is entitled to protect; 2. The restraint is reasonable between the parties in terms of time, geographical area, the nature of the activities prohibited and the overall fairness in the circumstances; 3. The restraint is reasonable with respect to the public interest. And I note that this test arises out of the J.G. Collins Insurance v. Elsley Estate.
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