Is a disability claim deductible from a loss of earning capacity claim?
British Columbia, Canada
The following excerpt is from Chan v. Butcher, 1984 CanLII 536 (BC CA):
The short answer to that proposition in this case is to say that once the disability benefits have been characterized as in the nature of insurance, and not in the nature of wages, then the benefits are not in pari materia, and one is not to be deducted from the other. It is not wages for wages which is under consideration but insurance proceeds and loss of wages. It is a loss of one kind and a gain of a different kind. As in Parry v. Cleaver (where the ill-health pension was held not to be deductible from loss of wages) such benefits, being in the nature of insurance, are not deductible from a claim for loss of earning capacity.
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