After Co-Operators General Insurance was unsuccessful at the Licence Appeal Tribunal in the original hearing and the reconsideration hearing regarding a dispute over whether the long-term disability (LTD) settlement should have been deducted from our client’s IRBs, Co-Operators decided to appeal the decision to the Ontario Divisional Court.
Justice Lederer upheld the Tribunal’s decision and found that the adjudicator did not err in finding that the LTD settlement between our client and her LTD insurer was not confined to payment for her LTD claims alone and should therefore not be deducted from her past IRB calculation.
Specifically, Justice Lederer agreed with our position that our client’s LTD settlement was for a lump sum not attributable to income replacement. The cases relied on by the accident benefits insurer were distinguishable because in each of them, the court could identify a specific sum to be paid due to lost income. In the case at bar, there was no such breakdown in the LTD settlement.