Interest is payable on income replacement benefits wrongfully stopped after a negative DAC assessment.
The insurer appealed an arbitration decision ordering it to pay interest on outstanding income replacement benefits from the date it stopped paying them following a negative designated assessment centre (DAC) report.
The Director's Delegate dismissed the appeal, finding that when it is finally determined that benefits should not have been stopped, the requirement to pay 'any amounts under the benefit that were not paid' includes compound interest from the date of the negative DAC.
State Farm Mutual Automobile Insurance Company v. Savithiri Sivananthan, 2005 ONFSCDRS 144