A new provision of the law bars courts from considering the likelihood of future benefit payments
In a recent personal injury case, the BC Supreme Court ruled in favour of the defendant, allowing deductions for future benefits despite the plaintiff's objections about uncertainties surrounding the payment of those benefits.
The accident, which occurred on May 30, 2018, fell under the revised Insurance (Vehicle) Amendment Act, 2018, which expanded the scope of deductible benefits for accidents after May 17, 2018. As a result, the court had to consider deductions for benefits payable to the plaintiff, such as long-term disability (LTD) and Canada Pension Plan (CPP) disability benefits. The defendant sought a deduction of $316,436, the present value of these future benefits, as calculated by the plaintiff’s economist.
The plaintiff raised two objections. First, she argued that no direct evidence from the LTD insurer or Service Canada (in the case of the CPP disability pension) was presented to confirm her eligibility for these benefits or their amounts. Second, she cited case law suggesting that uncertainty surrounding the payment of future benefits should be considered when determining deductions under s. 83 of the act. The plaintiff contended that deducting benefits that might never be received could result in a shortfall.
The Supreme Court rejected these objections, ruling that the defendant had met the burden of proof by demonstrating that the plaintiff had acknowledged receiving LTD and CPP benefits and by providing the economist’s report quantifying the benefits. The court noted that it was the plaintiff’s responsibility to dispute this evidence, which she had not done.
In addressing the plaintiff's argument about uncertainty in future benefits, the court referred to a new provision in the act, section 83(5.1). This provision prohibits the court from considering the likelihood of future benefit payments when estimating deductions. The court concluded that for accidents occurring after May 17, 2018, the law no longer allows for deductions based on uncertainties about future benefits. As a result, the court ruled in favour of the defendant, setting the deductions at $316,436.
