CPP Disability Benefits: To Deduct Or Not To Deduct

The standard form SEF 44 endorsement (The Endorsement) was recently interpreted by the Supreme Court of Canada in the case of Sabean v. Portage La Prairie Mutual Insurance Co., 2017 SCC 7. The Endorsement indemnifies an eligible claimant from any shortfall in the payment of a personal injury judgment for damages arising from an underinsured tortfeasor but is subject to a list of deductions as set out in The Endorsement. One of the deductions states that all future benefits from a "policy of insurance providing disability benefits or loss of income benefits or medical expense or rehabilitation benefits" are deducted from the shortfall which the insurer must pay. The issue arising in this appeal was whether Canadian Pension Plan (CPP) disability benefits are "a policy of insurance." The Supreme Court of Canada determined that the wording of The Endorsement was unambiguous – an insurer cannot rely on any specialized knowledge of the insurance industry to advance an