Cyclist Rylan Kafara’s $6,000 Insurance Bill Sparks Legal Debate

When Edmonton cyclist Rylan Kafara was struck by an SUV while biking home from work, he thought the worst was over once he healed from his injuries. But months later, he received a shocking $6,200 bill from Wawanesa Insurance — along with a warning that his driver’s licence could be suspended if he didn’t pay.

The unusual case has sparked widespread attention — and concern among legal experts — about how far insurance companies can go when dealing with cyclists involved in collisions.

What Happened to Rylan Kafara

In September 2013, Kafara was cycling through northeast Edmonton when another cyclist suddenly cut across traffic, causing him to collide with a 2013 Toyota Venza. The accident left him injured and unable to work for months.

What he didn’t expect was a $6,223 demand letter from the SUV driver’s insurer (CBC News). The company alleged that Kafara ran a red light and damaged the vehicle — even threatening to sue and seek suspension of his driver’s licence if he didn’t pay up.

Sivan Tumarkin: “It’s Like a Poker Game”

Sivan Tumarkin, a disability and insurance lawyer who formerly represented insurance companies, told CBC News that the insurer’s approach was aggressive and questionable.

“I’m reading it as the insurance company flexing its muscles and playing a poker game here,” said Tumarkin. “They’re saying to the cyclist, pay up, or we’re going to go after you. And not only after you, but after your ability to drive, buy groceries and make a living.”

Tumarkin noted that while Alberta law technically allows a licence suspension following a civil judgment, there’s no guarantee a court would side with the insurer. He called it an unnecessary legal gamble for a company as large as Wawanesa:

“Let’s face it, by the time this civil action is done, the insurance company will likely pay their lawyer more than what they could potentially get from the cyclist. It’s such a ridiculous situation to be in, where Wawanesa is really concerned about $6,000 worth of damage to the vehicle when the cyclist could have been killed.”

Legal Grey Area: Can a Cyclist Lose Their Driver’s Licence?

Under Alberta’s Traffic Safety Act, a driver’s licence can be suspended if someone fails to pay a judgment arising from a motor vehicle accident. But it’s not clear whether that rule applies when the person at fault is on a bicycle.

In a Global News interview, Tumarkin explained that insurers may rely on intimidation tactics to pressure people into paying:

“In situations where they’re going after someone or they’re writing a letter, particularly when it’s coming from an insurance company lawyer, they’re banking on the person receiving it being frightened and at the very least entering into some kind of settlement arrangement.”

What Cyclists Can Learn From This Case

Kafara’s story is a warning to cyclists across Canada about the potential financial risks of an accident. Even if you’re not driving a car, you could still be held personally liable for damages in a crash.

Experts recommend carrying personal liability insurance, which is often included in homeowners’ or tenant policies. This coverage can protect cyclists from unexpected costs if they’re found responsible for a collision.

Takeaway

Rylan Kafara’s experience shows how quickly an everyday accident can spiral into a financial and legal nightmare. As Tumarkin put it, it’s a reminder that large insurance companies sometimes rely on fear and confusion to pressure individuals — even in cases where the law may not be on their side.

If you’re ever in a similar situation, it’s important to get legal advice before agreeing to pay or sign anything.

If your insurer is threatening legal action after a bicycle or vehicle collision, contact the team at Samfiru Tumarkin LLP for advice. Our lawyers can explain your rights and help you respond effectively.