Ontario Employers No Longer Permitted to Self-Insure Employees' LTD Benefits
Ontario's 2014 budget, passed on July 24, has called for an amendment to the Insurance Act to prohibit employers from self-insuring their employees' LTD benefits.
Employers who self-insure often do so as a cost-saving measure, as paying for employees' benefits on an as-needed basis can result in significant savings compared to the costs of group plan premiums provided by licensed insurance companies, which insure all personnel in the company.
LTD Benefits No Longer Self-Ensured By Employers
However, according to the budget: "Recipients of long-term disability payments have seen their payments reduced or eliminated when their corporate employer faced fiscal challenges and the fund was not insured."
One egregious example that comes to mind is Nortel. This now defunct company's self-insured LTD plan, underfunded by approximately 75 million dollars, left 350 disabled employees without benefits when the company went bankrupt.
The changes proposed in the 2014 Ontario budget are meant to protect employees by amending the Insurance Act to require that Employers who currently self-fund their employees' long-term disability benefits switch to an insured plan provided by a licensed and regulated insurance company.
Has your long-term disability claim been denied? Contact Share Lawyers and put our experience to work for you. We offer free consultations and there are no fees unless we win your case.
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A note from our long term disability lawyers
Taking a medical leave from work is not an easy decision to make. Concerns about providing for yourself and your family and keeping your job may cause you to want to push through your pain, but this won’t make your problems go away. Stopping work is often the smartest decision for your long term health and well-being, and your disability benefits are there to provide you with financial support until you can return to work.
If you have made the tough decision to stop working and apply for your short term disability or long term disability benefits, you may feel overwhelmed by the process and have questions that your employer and your insurance company are not able or willing to answer. Share is There to see you through and answer your questions.
Our Disability law firm knows what you have been going through
We understand that things have not been easy for you over the last little while. Your health has been suffering, you are unable to work, and now your insurance company, who was supposed to be there in your time of need, has decided they will not pay your disability benefits or respect your disability claim. These benefits exist to provide you with the financial support you need so that you can focus on your health and rebuilding your life. It is unfortunate that your insurance company has not lived up to its promise. If your disability claim has been denied, we will fight to get you the benefits you are entitled to. Our disability lawyers have helped thousands of Canadians get their long term disability benefits over the past 35 years, and we can help you too.
Our experienced disability lawyers can fight back on your behalf
Share Lawyers believes that every client who is dealing with a disability claim deserves superior personal service. To achieve that goal, we have developed our team of experienced, compassionate, and caring long term disability lawyers, law clerks, and administrative staff to meet all of your needs. Our team of experienced long term disability, life insurance, employment, and critical illness insurance lawyers have made successful claims against many insurance companies, third-party administrators and employers.
If you are unable to work, your disability benefits should be there to provide you with the financial support you need. While your insurance company may be focused on finding ways to avoid paying your claim, our focus is on what is in your best interest. When Share Lawyers gets involved, you have an entire team of lawyers that are there to support you and to fight for what is yours.
Our disability claim lawyers fight for your disability insurance claim by relying on our many years of experience to apply the best strategic planning and approach in each case, using the latest technology available. Experience matters, and with Share Lawyers, you are in the best hands with 35 years of success on your side.
In this video, we explain the role of a long term disability lawyer and how we can support you when you have been denied your long term disability benefits.