Rivera v. British Columbia Life & Casualty Company, 2015 CarswellOnt 16988
This application addressed the priority of coverage between a Long-Term Disability Carrier and an Accident Benefits Carrier. The Respondent, BC Life & Casualty Company, took the position that it was entitled to deduct Income Replacement Benefits from their calculation of the Applicant’s Long-Term Disability Benefits. The Applicant brought an application for a declaration that this was inappropriate. As per both the Insurance Act and the Statutory Accident Benefits Schedule, it is the Accident Benefits Carrier that is entitled to deduct Long Term Disability Benefits received, not the other way around. This resulted in the Applicant facing deductions from both carriers and receiving less than what he was contractually entitled to as per the regulations. Madam Justice Milanetti agreed with the Applicant and regarded the Respondent’s approach as based on an “erroneous” understanding of Ontario law. Justice Milanetti noted that “The matter should have been resolved without the need for today’s convoluted hearing. I have no confidence that it would have been resolved but for it.” Costs of $3,500 inclusive of HST and disbursements were awarded to the Applicant.