Are contractual limitation periods and notice clauses valid?
Some policies of marine insurance expressly provide for actions against insurers to be commenced within a set period of time (contractual limitation periods) or for notice of claims or possible claims to be given within a set period of time (contractual notice periods). The validity of contractual limitation periods depends, in part, on the legislation that governs the particular insurance contract. As we have seen, the legislation governing the insurance contract may depend on the court in which the action is commenced as well as the place where the cause of action arose. Insofar as a matter might be governed by the Insurance Act of British Columbia, any contractual term limiting the time for bringing an action would be null and void to the extent that it is contrary to the one year period prescribed by section 24. This follows from section 4 of the Act which provides that the statutory limitation period applies “notwithstanding any law or contract to the contrary”. However, as indica
