ODSP – Is it deductible from Non-Earner and Income Replacement Benefits?


The decision by Arbitrator Alves in Anglin v. State Farm [FSCO A11-000817] resolves the issue of whether an Insurer is able to deduct ODSP payments from non-earner benefits. In this case, at the time of the accident, the Claimant was receiving ODSP (Ontario Disability Support Program) benefits. State Farm argued that it should be deductible pursuant to section 60 of the SABS (Statutory Accident Benefits Schedule) (now section 47) as it should be considered a collateral benefit.

On review, Arbitrator Alves held that section 58(1) (now section 60) provides that the “Insurer shall pay benefits under the Regulation even though the insured person is entitled to, or has received, benefits under an Act administered by the Ministry of Community and Social Services for Ontario or under similar legislation in another jurisdiction.” 

Arbitrator Alves noted that pursuant to the Ontario Disability Support Program Act and the related Regulation, non-earner benefits are considered income and are therefore deductible from any ODSP benefits paid to a Claimant. As a result, the Arbitrator found that there was no double compensation to the Claimant.

The Arbitrator did not consider whether ODSP benefits are deductible from income replacement benefits. However, as non-earner benefits and income replacement benefits are characterized in the same fashion in the Ontario Disability Support Program, it is clear that an Insurer is not able to deduct these payments from income replacement benefits either.


Topics:  Deductibles, Disability, Disability Insurance, Insurers, State Farm

Published In: Civil Procedure Updates, Civil Remedies Updates, Insurance Updates, Personal Injury Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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