Deducting Collateral Benefits From Loss of Income Claims

November 26, 2018

On Tuesday, November 20, a panel of Cox & Palmer insurance lawyers from across the region presented our Advance 2018 Insurance Law Webinar, which covered the latest on the Common law and Legislative law approaches to deductibility related to loss of income claims.  Our panel provided specific details regarding the most common collateral benefits and their treatment with respect to loss of income claims, including Canada Pension Plan (CPP), Employment Insurance (EI), Social Assistance, Workers Compensation, and sick leave. As part of the webinar materials, we prepared a paper and a handout, which we have linked below for your reference. We have also provided a link to the full webinar, which you can view and listen to at your convenience.

Paper

Deducting Collateral Benefits From Loss of Income Claims

A question that we frequently hear from our colleagues in the insurance industry is: what benefits can we deduct in tort claims seeking damages for loss of income?

Consider the plaintiff who has suffered a disabling injury and is unable to work as a result of either a slip and fall accident or an automobile accident caused by the defendant.  The plaintiff receives collateral benefits from third parties to account for his or her loss of income; benefits in the form of insurance payments, sick leave payments, EI sickness benefits and/or CPP disability benefits.  Can the defendant deduct these benefits from the loss of income claim made by the plaintiff?  This paper will provide an overview of the common law approach to deduction of collateral benefits as well as the specific types of deductions that are permitted in the Atlantic Provinces through legislation.

Handout

Deductibility of Collateral Benefits: Synopsis of the Deductibility of Various Benefits in a Section ‘A’ Action for Each of the Atlantic Provinces

 

Webinar

Advance 2018 Insurance Law Webinar: Deducting Collateral Benefits From Loss of Income Claims

Related Articles

Revised Labour Standards for Federal Employers

On December 13, 2018, the federal government gave royal assent to a bill that promised substantial changes to the employment standards for federal employers. The changes themselves have not yet been implemented, however, this is expected in 2019 and will be subject to staggered implementation dates. Overview of Key Changes There are a number of […]

read more

CPP Disability Payments Deductible From Future Loss

The Nova Scotia Court of Appeal overturned a motion decision in Sparks v Holland, 2019 NSCA 3 (“Sparks”), holding that Canadian Pension Program (“CPP”) disability payments are deductible from future loss of income and earning capacity. Background The respondent, Catherine Holland, was involved in a motor vehicle accident with the appellant, Josh Sparks, on May […]

read more
view all
Cox & Palmer publications are intended to provide information of a general nature only and not legal advice. The information presented is current to the date of publication and may be subject to change following the publication date.