Insured not entitled to long-term disability benefits under an insurance policy held by former employer

The plaintiff was not entitled to long-term disability benefits under an insurance policy held by his former employer because the plaintiff did not make his claim until after his employment ceased.

MacIvor v. Pitney Bowes Inc., [2017] O.J. No. 1161, 2017 ONSC 1550, Ontario Superior Court of Justice, March 7, 2017, A. Pollak J.

On April 16, 2005, the plaintiff was injured on a work trip. On August 11, 2008, the plaintiff voluntarily left his employment. Relying on s. 297(1) of Ontario’s Insurance Act, the plaintiff sought a declaration that he was entitled to long-term disability benefits effective 2010. The Court held that, as per the clear and express language of the policy of insurance, coverage ended when the employee ceased to be actively employed. The Court also found that s. 297(1) did not apply as it only dealt with a termination of an insurance policy. The provision did not deal with situations when there was no coverage pursuant to the terms of an insurance policy.

This case was digested by Kora V. Paciorek and edited by Steven W. Abramson of Harper Grey LLP. If you would like to discuss this case further, please feel free to contact them directly at kpaciorek@harpergrey.com or sabramson@harpergrey.com or review their biographies at http://www.harpergrey.com.

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