The lawyers at Aaron Waxman & Associates are experienced with Disability, Personal Injury and Employment claims.
Aaron Waxman and Associates is a Toronto Personal Injury Law Firm. We handle all types of personal injury claims, including long-term disability claims. Bad Faith Claims can arise in long-term disability cases.
When our clients’ benefits are denied or terminated, we commence an action against the Long-Term Disability Insurer. In the Statement of Claim, which is the court document that starts the legal process, we include a section where we plead bad faith. In order to make a claim for bad faith, we must include it in this document so that the insurance company knows this type of claim is being brought.
In Canada, the courts tell us that the duty of good faith requires that an insurer act both promptly and fairly when assessing claims. Breaching the duty of good faith in an insurance claim can lead to punitive damages. In order for the court to find that unfair conduct has taken place, and to award punitive damages, the court must find that the insurer acted unfairly and ‘delinquently’.
The idea is to reveal how the claim was handled from the outset and by what means the insurer actually arrived at the decision to stop payment or deny the claim. For example, an insurance company cannot terminate your LTD benefits while you are awaiting a decision from CPP regarding your disability benefits.
Bad faith claims are meant to act as a deterrent so that insurers will not exploit the vulnerability of the insured.
Morrison J., in Asseltine v. Manufacturers Life Insurance Company (Plaintiff sues disability insurer) said:
“A duty of good faith and fair dealing requires an even-handed evaluation of all evidence before the insurer by the insurer. Just as one cannot cherry pick the information to send to an assessor for a rehabilitation opinion, one cannot choose only to accept certain medical evidence in the face of compelling conflicting evidence.”
Examples of bad faith are:
1. Not rendering a decision about benefits in a timely fashion, even though medical info shows insured is totally disabled
2. Denial of benefits without medical certification indicating the insured is able to resume regular occupation
3. Unreasonable interpretation of policy
Our firm has successfully handled many LTD cases. Contact us for a free consultation.
* This blog is for informational purposes only and is not meant to substitute legal advice. Please read our disclaimer for further information.
* All of our lawyers are licensed by The Law Society of Upper Canada
* Office in Toronto and able to represent people in the province of Ontario