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?
