This application addressed the priority of coverage between a Long-Term Disability Carrier and an Accident Benefits Carrier. The Respondent, BC Life, took the position that they were 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 being deducted from both ends and receiving less than what he was contractually entitled to as per the regulations. Justice Milanetti agreed with the Applicant and regarded the Respondent’s approach as based on an “erroneous” understanding of Ontario law. The decision was regarded as having significance to both the Applicant and potentially the insurance industry.
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