Insurance law – Automobile insurance – Damages – Benefits – Deductibility
Portage LaPrairie Mutual Insurance Co. v. Sabean,  N.S.J. No. 230, 2015 NSCA 53, Nova Scotia Court of Appeal, June 4, 2015, D.R. Beveridge, M.J. Hamilton and J.E. Scanlan JJ.A.
The Nova Scotia Court of Appeal considered whether future Canada Pension Plan disability benefits were deductible from the amount payable to the insured under the SEF 44 Family Protection Endorsement contained in the insured’s insurance policy issued by the insured’s motor-vehicle insurer.
The action arose out of a motor-vehicle accident in which the insured settled his claim against the driver of the other vehicle for the policy limit. The insured then commenced an action under the SEF 44 endorsement in his insurance policy for additional damages. The action proceeded to trial and a jury awarded him damages. Based on the jury’s quantification of his damages his insurer was required to make a payment to him. The parties disagreed as to whether the amount should be reduced through the deduction of any future CPP disability benefits the insured would receive.
The Court of Appeal held that contrary to the conclusion of the trial judge CPP disability benefits were to be deducted from the amount otherwise payable by the insurer.
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