Chantelle Lucyshyn, a Kitchener, On based Canada Post employee who’s been with the company for 24 years, is fighting to get her long-term disability benefits while undergoing chemotherapy treatment for stage 4 ovarian cancer.
Lucyshyn was diagnosed on November 8 and went on strike with other Canada Post workers on the 15th, she told CTV News, adding that her doctor took her off work on the 25th. Because of her health issues, she submitted a short-term disability claim with the insurance company Canada Life.
The response she received was devastating. “Canada Post has advised at this time that they will not be paying any disability benefits to employees who were considered disabled … within the strike period,” an email to Lucyshyn stated as per CTV.
Thankfully, the decision was overturned due to unknown advocating efforts. But, Lucyshyn is now fighting another uphill battle: her long-term disability claim.
A spokesperson from Canada Post, in a statement provided to CTV, noted how “prior to Canadian Union of Postal Workers (CUPW) taking strike action, Canada Post provided CUPW with the opportunity to cover the cost of employee benefits so they would be maintained once CUPW was in a legal strike position. This is a common practice during a potential labour disruption. CUPW refused to cover the cost of employee benefits.”
“To qualify for long-term disability under the insurance plan, employees’ disability insurance premiums must be paid. Unfortunately, if the premiums were not being paid on the first day of the employee’s disability, they are considered ineligible for long-term disability under the insurance plan. This is standard practice across the insurance industry,” the statement continued.
Given the ubiquity of the practice, it seems unlikely that, in Lucyshyn’s case, Canada Life or Canada Post will budge an inch to make up for missed premium payments.
“The insurance company wouldn’t be obligated to pay those benefits while the premiums weren’t being paid, as long as the disability arose during the period where premiums were, in fact, not being covered,” James Fireman, a disability lawyer with Samfiru Tumarkin LLP, told the news outlet.
“I can assure you, I don’t make a habit of saying things in support of insurance companies, but as a fundamental rule, if they’re not getting the premium, then they’re not on the hook for the benefit,” he added.
Fireman also thinks it unlikely Canada Post or the insurance company will pay up again.
Is missing a premium payment a problem in Canada?
According to Ontario-based brokerage, Mitch Insurance, the number of clients missing insurance payments has increased a staggering 104% since 2019. The reasoning is mostly circumstantial and informed by particularly unfavourable economic conditions.
The first being premium hikes from insurers after the pandemic and once people returned to the workforce in person, while the current cost of living crisis has made it more difficult to keep up with payments while making other more important purchasing decisions.
“We hear things like, ‘I can’t afford all of my bills and you were the last one to come out,’ or that they just need some extra time, a few extra days before they get their next paycheque so that they can pay everything,” said Mitch retention manager, Cassie Gilroy, in a statement.
Repeatedly missing payments is likely to result in outright policy cancellation, which can be devastating for those needing the protection in case of serious injury or illness, like Lucyshyn.
However, insurers differ on how they treat this scenario, with some attempting to access funds days after the initial failed payment, while others may send a registered letter for cancellation once a payment is missed, which contains what is needed in order to keep a policy active (typically an NSF fee and the next month’s payment).
Racking up three of these letters within a calendar year will result in an insurer not reinstating a policy.
If you have a hard time managing all your financial obligations and fear that certain payments may be missed, a budgeting app can help you action your money more efficiently to make sure you can afford all your essentials.
You can also look into creating an emergency fund, stowing away a little bit of money with each paycheque into a high-interest savings account in order to have backup funds saved for a rainy day.
How to protect your benefits when you really need them
Lucyshyn’s harrowing ordeal is one that should make all employees think hard about what they can do to protect their benefits — the ones they put hundreds and thousands of dollars into — during times they are most vulnerable.
Strikes are becoming more severe and widespread, harkening back to the massive strikes in the 1970s and 1980s. According to research from the Canadian Centre for Policy Alternatives, over 500,000 workers “walked off the job” in 2023. This resulted in over 6.5 million workdays lost, which is the most lost in a single year in the last four decades.
Here’s some pointers to help you before you find yourself in a precarious situation from a strike.
- Talk with your union/insurance plan representative. If your union is planning to strike for any reason, you need to clarify exactly what that could do to your benefits if you need them. Don’t wait until the unthinkable happens.
- Talk to an expert. Law firms such as Fireman’s deal with disability insurance claim denials on a day-to-day basis. If you are having concerns your insurance company isn’t treating you fairly, book a free consultation with a lawyer.
- Continue to work. In some cases, you may be able to refuse to strike with your bargaining group and work as normal. In doing so, you may avoid the risks Lucysyn faced — though this option is not always possible.
Sources
1. CTV News: Canada Post employee denied short-term disability claim because cancer diagnosis came during strike, by Spencer Turcotte (Jan 16, 2025)
2. Mitch Insurance: What are the implications of missing an insurance payment?, by Gabrielle Reid (Feb 1, 2024)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
