News & Events

Deducting Collateral Benefits From Loss of Income Claims

A question that we frequently hear from our colleagues in the insurance industry is: what benefits can we deduct in tort claims seeking damages for loss of income? Consider the plaintiff who has suffered a disabling injury and is unable to work as a result of either a slip and fall accident or an automobile accident caused by the defendant.  The plaintiff receives collateral benefits from third parties to account for his or her loss of income; benefits in the form of insurance payments, sick leave payments, EI sickness benefits and/or CPP disability benefits.  Can the defendant deduct these benefits from the loss of income claim made by the plaintiff?

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