What is the difference between the Canada Pension Plan definition of disability and that of private insurance companies?
The Canada Pension Plan definition of disability has been described above. Private disability plans, however, usually have a two-step process. There is a period of short-term disability which is paid if an individual is unable to perform the regular duties of his usual employment. This is usually paid for a short-term basis of one to three years. Subsequent to this, to continue to receive benefits, one must usually prove an inability to perform any reasonable occupation given his or her education, training and experience. This test is often less stringent than the Canada Pension Plan test. It means that an individual must be disqualified from being able to perform any reasonable occupations. These can include occupations which the person can be trained for within a reasonable amount of time.
