Short and long term disability insurance policies contain offset provisions. Typically your disability insurance company can deduct money you receive from the following sources:
- Canada Pension Disability payments
- WSIB payments
- severance payments
- retirement allowances from your employer
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In fact many disability insurance policies stipulate that if Canada Pension Plan disability benefits or WSIB benefits are available but not applied for the disability insurer can deduct what would have been paid if the application had been made.
There are some exemptions and the contract should be looked at by an experienced disability lawyer to ensure that deductions are not being inappropriately claimed by your disability carrier.
At Kotak Law we have significant experience in successfully challenging disability insurers who have claimed deductions or have denied or terminated disability benefits.