How to File a Long-Term Disability Lawsuit on Time

Perhaps one of the most overwhelming and frustrating processes an injured worker will go through is the lawsuit filing against a long-term disability provider. A few of the most important aspects of this process are in relation to what statute of limitations applies, which controls for how much time a plaintiff has from the date of denial or termination to file a lawsuit. This will lead to the case of losing the right to claim at all if it fails to file in this time. Following are the statute of limitations for filing a long-term disability lawsuit, why this is important, and what steps can be taken to protect your rights.

What is a Statute of Limitation?

Statute of Limitations: There is always a legal limit showing for how long one cannot actually file a case in each case. In the case of filing a long-term disability claim, it is the instance when an insurance company denied or terminated the claimant’s benefits that the limitation began. The statute of limitation is the length of time a lawsuit may be filed, which will vary according to province or territory in Canada, type of policy, and whether it falls under a group or individual insurance plan.

Understanding this deadline is important, as the expiry of this time limit means the loss of the right to contest the insurance company’s decision in court. That is why it will be relevant to identify when the running of the time starts and how much time is available for commencing the litigation.

Determining the Start of the Limitation Period

In long-term disability cases, the statute of limitations usually accrues at such time when the insurance company finally denies or terminates your benefit. It is what they call a “cause of action.” The limitation period often starts to run from the date of notification of the denial or the date when your benefits stopped, rather than the date you first became disabled.

That starting point is not always apparent, however, as the clock may start running more or less earlier than others depending upon the terms of the policy and any communications between the claimant and the insurer. It may be clear with the consultation of a long-term disability lawyer when the limitation period starts in your specific case.

Limitation Periods Usually

These statutes of limitation vary between different provinces and territories of Canada. In Ontario, for example, a lawsuit, in general, should be filed within two years from the date that the cause of action occurred. This is according to the Ontario Limitations Act, 2002, which encompasses most civil cases, including those involving long-term disability.

Whereas other provinces, say British Columbia or Alberta, also impose a two-year limitation, again, this is one of those instances when it would be prudent to examine your policy for specific details and provincial laws. Sometimes, specific clauses or exemptions may extend or shorten the review period beyond this.

Individual insurance policies may have shorter deadlines provided by specific contractual terms known as limitation clauses. It is a very important part of reading the fine print in your LTD insurance policy for limitations less than the maximum allowed by provincial statute.

Why the Statute of Limitations Matters

The statute of limitations is crucial since, upon expiration of this period of limitation, your respective legal rights to contest the denial of benefits are effectively deemed nil. The courts have very limited discretion in extending this deadline, and the insurance carriers will assuredly use the expired statute as a defense to defeat any liability.

Besides that, insurance companies are aware of this statute of limitations and may delay mail or processing for the purpose of not being able to file the claimant within the given time. Regarding that, claimants should act immediately once they obtain a notice of denial or discontinuance.

Engaging a Long-Term Disability Lawyer

The statute of limitations, as applied to your case, can be confusing as one seeks to understand it. Because this can be somewhat cumbersome with respect to timing, you are highly encouraged to consult a LTD Lawyer who can help move your case along within the appropriate time frame. An experienced long-term disability attorney will guide you through the process and let you know when the clock starts running on your limitation period and how best to move forward. They will also assist you in compiling the required documentation, medical evidence, and other information that will be needed to prove your claim.

If one’s claim has been denied or terminated, immediate legal intervention is indispensable. The quicker you can see a lawyer, the better the possibility of filing your lawsuit within the time limit provided by law.

Exceptions and Extensions

Of course, there are some exceptions to this rule where the limitation is extended or delayed. If the claimant is mentally incapacitated, for example, the time may be postponed until he or she is able to handle his or her affairs. If the insurer has not denied clearly and finally, there might be an argument for delaying the commencement of limitation.

Some provinces also apply a “discoverability rule,” whereby the limitation period starts when the claimant knew or ought to have known they had a valid cause of action. Sometimes this arises in cases where an insurance company has provided misinformation to the claimant regarding their benefits.

Because these exceptions can be complex, and they tend to differ greatly from one jurisdiction to another, it is important that a long-term disability claims attorney assist in determining if an exception that extends the limitation period applies to your case.

Conclusion

The statute of limitations is a key factor in long-term disability suits. Knowing when your limitation period starts, and how much time you have to file your lawsuit, may be the difference between receiving benefits or losing your right to compensation. Time limits differ according to policy terms and provincial legislations, so your best option is to consult a long-term disability lawyer who will make sure that your case is filed in a timely manner and processed correctly. The key to successful LTD claims is to act quickly and seek professional advice on how you may be able to preserve your rights.