Disability insurance - Long term disability benefits - Medical examination - Limitation of actions - Running of limitation period; Policies and insurance contracts - Statutory provisions
March 2008Lanki v. Co-Operators Life Insurance Co.
[2007] B.C.J. No. 2787
British Columbia Supreme Court
E.A. Bennett J.
November 7, 2007
The Plaintiff was covered by a group policy of insurance with the Trustees of the Office and Professional Employees International Union Local 378 Ltd. Trust. The policy provided long-term disability coverage to eligible employees. The Plaintiff became disabled from performing the usual and customary duties of her own occupation on July 8, 2003. She received sick benefits from her employer from that date until October 21, 2003. On October 21, 2003, Co-Operators Life Insurance Co. began paying benenfits to the Plaintiff under the terms of the policy. She was eligible for own occupation benefits until October 18, 2005. By letter dated July 27, 2005 Co-Operators advised that as a result of a report from an independent medical examination, the Plaintiff would not receive benefits beyond October 18, 2005.
The Plaintiff sent Co-Operators additional information, and on August 23, 2005 Co-Operators wrote to the Plaintiff and advised her that they had received the additional medical information. The letter also stated that she would receive benefits until October 18, 2005 and then her file would be closed.
The parties agreed that s. 22 of the Insurance Act governed the litigation. The Court applied the decision of Balzer v. Sun Life Assurance Company of Canada, 2003 BCCA 306 and found that the limitation period ran from the date of the termination of the benefits, not the notice of the termination of the benefits. Accordingly, the limitation defence was struck and the Plaintiff could bring her action on the merits.
This case was digested by Sarah Swan of Harper Grey LLP. If you would like to discuss this case further, please feel free to contact her directly at 604.895.2846 or sswan@harpergrey.com
