Disability insurance policies are meant to provide you with peace of mind should you be physically or mentally unable to work at your job.
Disability insurance benefits provide financial assistance when you are not able to earn your regular employment income. Typically, the amount of the disability insurance benefit is based off of a percentage of the employment income you would otherwise receive.
However, simply because you are entitled to coverage under your disability insurance policy, does not necessarily mean you are entitled to receive the full amount of benefit that is provided for under your disability insurance policy. Typically, disability insurance policies outline a number of payments that will be used to reduce your disability insurance benefits if you are receiving the payment.
Your disability insurance policy must clearly and explicitly set out what the insurer is allowed to use to reduce your benefits. If the policy is not clear about whether a certain payment can be deducted, typically the ambiguity is resolved in the insured’s favour. Some common examples of payments that disability insurance policies will attempt to use to reduce your maximum benefits are:
- Canada Pension Plan Disability (CPPD) Benefits;
- Workers Compensation Wage Loss Benefits;
- Other disability insurance benefits; and
- Salary or other remuneration from your employer.
Please note that whether a particular payment in your claim is able to reduce your disability insurance benefits depends on the exact nature of the payment you are receiving and the exact wording of your disability insurance policy. If you have a question regarding whether your disability insurance benefits should be reduced by a particular payment, or have another concern regarding your disability insurance, please contact one of Key Murray Law’s Personal Injury lawyers.
Legal information appearing in this article and elsewhere on Key Murray Law’s website is intended for informational purposes only and is not intended to substitute for or replace any legal or other professional advice. If you have specific concerns or a situation in which you require legal advice, you should consult directly with one of our lawyers.