A recent FSCO decision of Arbitrator Wilson provides an answer to the question of whether an insurer gets credit against Income Replacement benefits, for a lump sum CPP Disability payment received long after an accident.
The insured, Leroy Pries applied for and received accident benefits, (and in particular the IRB benefit) from Economical Mutual Insurance Company following a motor vehicle accident of September 3, 2007.
Mr. Pries applied for a CPP Disability benefit and was notified on March 3, 2010 that he was accepted for the benefit retroactive to November 23, 2008 (i.e. 2 years prior to the date of application and continuing). Mr. Pries duly notified Economical of the receipt of this benefit. Economical then sought to recover repayment of the IRB benefits paid to Mr. Pries on the basis of an overpayment resulting from the receipt of the lump sum CPP benefit from 2008 through 2010.
There was no dispute that CPP payments are normally deductible from IRB payments made by an insurer. Similarly, when appropriate notice has been given, there was no dispute that the SABS create a right in an insurer to demand repayment of benefits which have been overpaid.