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Insurer may deduct collateral LTD benefits from IRBs where applicant missed the LTD application deadline.
The applicant was injured in a motor vehicle accident and received income replacement benefits (IRBs) from the respondent.
The applicant had long-term disability (LTD) benefits available through his employer but failed to apply for them within the required 90-day limitation period, resulting in a denial of his LTD claim.
The respondent sought to deduct the LTD benefits from the applicant's IRBs, arguing that the applicant's failure to apply on time should be treated as if he had foregone the benefits.
The Tribunal agreed, finding that the applicant had an obligation to diligently pursue collateral benefits and that the accident benefits insurer is the payor of last resort.
The respondent was permitted to deduct the LTD benefits that would have been available had the applicant applied in time.
