• Last Updated:
  • Feb 27th, 2019 5:54 am
Jr. Member
Feb 22, 2009
140 posts

HST on Insurance Claim

Have a quick question, im being billed HST on a insurance claim from the cleanup crew. the rep says the insurance company will pay the bill but not the HST
and i am responsible for it. is this normal???
2 replies
Feb 4, 2019
23 posts
I find this highly unfair and illegal. I believe there is currently a class action lawsuit against 6 insurance providers in progress about this very scenario.

Take a look at this link:
https://www.cbc.ca/news/canada/toronto/ ... -1.4887883

The insurer is required to pay HST on your benefits. I would raise that issue to your provider. The issue, however, becomes that they may delay/hold your payment. For many victims, they end up simply accepting the partial payment in order to expedite their necessary treatment. Fortunately, yours is just an expense related to clean-up.

I would raise this issue to FSCO as well if your provider is not responsive.
Aug 26, 2018
11 posts
Insurance is usually not paying any HST in any commercial claim because the business can “reclaim” any HST paid and so insurance company elected to skip the tax.

Illegal or not, I cannot say much but this is true.