Insurer ordered to pay 40% special award for unreasonably terminating income replacement benefits.
The applicant was injured in a motor vehicle accident and received income replacement benefits for two years.
The insurer terminated benefits based on an orthopaedic surgeon's opinion that the applicant could work, despite contrary evidence from its own vocational expert and the applicant's treating physicians.
The arbitrator found the insurer's reliance on the surgeon's opinion to be unreasonable and a breach of its duty of good faith.
The arbitrator awarded a special award of 40% of the outstanding benefits and interest, noting the applicant's vulnerability and the foreseeable harm caused by the termination.
Sivakumaru Sinnapu v. Economical Mutual Insurance Company, 2010 ONFSCDRS 98
