- March 20, 2021
- Posted by: azimi
- Categories: Accident Benefits, Accident Related Awareness
Collateral benefits are explained and it is shown how they can affect your tort and accident benefits claims
Collateral benefits include private health benefits or disability insurance or benefits. Depending on the type of benefit, the defendant may be entitled to a setoff or deduction for the amount of the collateral benefit.
Collateral Source Benefits |
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Nature | Function | Deductibility | |
CPP Disability Benefits |
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ODSP Disability Benefits |
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Short (STD) and Long-Term (LTD) Disability Benefits** |
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Statutory Accident Benefits |
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* There are two reasons for this. First, section 52 of the ODSP Act, 1997, as amended, provides that the ministry responsible for implementing the ODSP program is ‘subrogated’ to the rights of the injured person to pursue recovery of benefits paid out; this means that the tortfeasor is responsible for paying the ODSP office back for benefits paid out to the injured person as a result of the injury. Second, ODSP is a means-based program and, because there is no guarantee that the injured person will continue to satisfy the means test, the defendant cannot claim the benefit of future ODSP payments.
** There are four unique issues for STD/LTD benefits. The first is: Who is the defendant? The defendant is either the insurer or employer: If the policy states that the insurer is responsible for paying benefits, the defendant is the insurer; if it states that the insurer is responsible for ‘administering’ the policy, but the employer is responsible for paying benefits, the employer is the defendant. The second is: What is the limitation period? The limitation period is set out in the individual’s specific policy. The third is: Are LTD benefits taxable? Some are, and so you should consult your accountant or tax lawyer for advice on the tax implications of a LTD benefit settlement before entering into one. The fourth is: Can a lawyer represent you? If you are a unionized employee, and there is a collective bargaining agreement that stipulates that this dispute falls within its scope, it is not uncommon for there also to be a provision that you irrevocably appoint the union as your sole representative.