<No Deduction of LTD Settlement by the automobile insurance> – May 13, 2022
- The MVA client is a full-time employee who can have an access to his long-term disability benefits payable through his work insurance up to 66.67% of his monthly earnings (up to a $5,000 per month).
- MVA client’s disability benefits were denied and a Statement of Claim against his work insurance (Sun Life Assurance) was issued, seeking LTD benefits from the date his disability benefits are effective (as per his policy) and ongoing plus punitive damages, interests.
- The Co-operators Insurance Company has the rights to deduct the LTD benefits from the income replacement benefits (paid by Co-operators) to prevent double recovery. However, if LTD benefit was settled with Sun Life, no deduction of this settlement by Co-operators is allowed.
