Bavani Thevaranjan v. Personal Insurance Company of Canada, 2014 ONFSCDRS 73

Neutral Citation: 2014 ONFSCDRS 73

FSCO A06-002094/

P13-00032V

BETWEEN:

BAVANI THEVARANJAN

Applicant

and

PERSONAL INSURANCE COMPANY OF CANADA

Insurer

Before: Stuart J. Mutch

Heard: By written submissions

Appearances: Mr. David S. Wilson for Mrs. Thevaranjan

Mr. Michael Chadwick for The Personal Insurance Company of Canada

Background:

This is an Application for Variation of an Order wherein Mrs. Thevaranjan was determined to be entitled to ongoing payment of weekly income replacement benefits in the amount of $263.51.¹ The basis for the application is that Mrs. Thevaranjan is, as of April 2010, receiving Canada Pension Plan Disability Benefits ("CPP Disability Benefits").²

The Personal is taking the position that CPP Disability Benefits are deductible from Ms. Thevaranjan's weekly income replacement benefit in accordance with the Schedule³ and that her weekly income replacement benefit should be reduced from $263.51 to $130.35.

Mr. Wilson, on behalf of Ms. Thevaranjan, consents to the order sought, with the proviso that the variation be effective from October 2, 2013, the date she was served with the application. Mr. Chadwick, on behalf of The Personal, consents to the variation being effective from that date.

Analysis

It is well settled that CPP Disability Benefits are deductible from income replacement benefits, as per section 7 of the Schedule.

I am satisfied that Ms. Thevaranjan's eligibility for CPP disability payments constitutes a material change in circumstances as is required to vary an order, as set out in subsection 284.1(3) of the Insurance Act.

I am therefore varying Arbitrator Sampliner's Order of June 26, 2007 to read as follows:

The Personal shall pay Bavani Thevaranjan $130.35 per week as ongoing income replacement benefits under Part II of the Schedule, commencing October 2, 2013.

April 29, 2014

Stuart J. Mutch

Arbitrator

Date