The plaintiff brought a motion for partial summary judgment seeking interpretation of long-term disability insurance policy provisions relating to coordination of benefits and cost-of-living indexation.
The dispute concerned whether Canada Pension Plan disability benefits should be treated as a direct offset from the policy entitlement or as part of an all-source maximum calculation, and whether indexation should apply to the gross policy amount or the net benefit paid.
The court held that the policy unambiguously required CPP disability payments to be deducted directly from the monthly policy entitlement and that indexation applied only to the net amount actually payable after the deduction.
Extrinsic evidence, including an insurer letter that had initially applied an indirect offset, could not create ambiguity where the contractual language was clear.
The motion for summary judgment was dismissed.
