In the case of ICTS (UK) Limited v Visram, the Court of Appeal (CoA) considered the meaning of ‘return to work’ for the purposes of long-term disability benefit.
ICTS (UK) Limited v Visram
Case details
Mr Visram was an International Security Coordinator for American Airlines at Heathrow. He was TUPE transferred to ICTS while on sick leave. Prior to the transfer he was entitled to receive long-term disability benefit (LTDB) provided by Legal & General (L&G). Post-transfer ICTS ran an LTDB scheme that was underwritten by Canada Life.
L&G refused to continue the LTDB payments to Mr Visram post-transfer because the transfer took place before expiry of the deferred period. Canada Life refused the benefit because the illness occurred prior to the inception of its policy. Mr Visram was left without cover and brought a claim.
The Court of Appeal held that ICTS was liable for continuation of the payments. The natural construction of ‘return to work’ in the policy terms meant return to previous work and not return to any suitable work. ‘Unable to work’ cannot mean incapacitated from any and every purposeful activity.
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