Disability Insurance Plans – With Proper Guidance, Make The Best Of It!


The aim of Disability Insurance Plans is to provide benefits to public service employees. These employees are entitled for the benefits when they are not able to work for a substantial period of time as a result of being disable, illness or injury.

The Plan was drafted as long as more than three decades back in Canada by the Public Service Management and Bargaining Agents' representatives in accordance with the advice of the National Joint Council of the Public Service of Canada. The Sunlife Assurance Company is one of the insurers and a Board of Management has also been established to look into various aspects like whether the person is qualified for it, what should be the rates, how the plan should be designed and above all to insure the financial integrity of the plan.

Generally the disability insurance plan covers both the full time employees and the part time employees. However, a part time employee whose working hours are one third or less than that of the normally scheduled full time is not covered under the plan. Similarly, a person who has reached the age of 64 years and 9 months also does not qualify for the entitlement of benefits, in case of disability. Any employee who is locally engaged outside Canada and is in such a position which is excluded from collective bargaining is not in purview of coverage of disability insurance plan.

The salary which accrues from the plan is according to the amount adjusted from the annual earned salary and the employer is presently contributing 85% and the beneficiary contributes 15%.

In case of total disablement, one is supposed to receive benefits up to 2 years. They are continued if the state of incapacitation continues up to the age of 65 years. The benefits begin after 13 weeks of disability or on the paid sick leave getting over whichever is later.