Deducting Collateral Benefits From Loss of Income Claims
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.
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.