A lesson for insurers, administrators

B.C. Supreme Court punishes University of British Columbia with $150,000 in punitive damages for the way a long-term disability claim was handled for a worker with MS
|Canadian Employment Law Today

Punitive damages in the employment law realm are relatively rare. When they’re awarded, it’s usually worth taking notice.

The British Columbia Supreme Court, in a decision upheld by the B.C. Court of Appeal, awarded a worker whose claim for long-term disability was rejected $35,000 in aggravated damages and $150,000 in punitive damages.

In doing so, the Supreme Court attempted to send a strong message to insurers: bad-faith administration of their policies will simply not be tolerated.