Schenker of Canada Limited

Transcription

1 Schenker of Canada Limited (Flex Benefit Employees) Group Policy No

2 Schenker of Canada Limited Flex Benefit Employees Life and Accidental Death and Dismemberment for Employees, Dependant Life, Optional Life and Accidental Death and Dismemberment for Employees, Optional Life and Accidental Death and Dismemberment for Spouse, Long Term Disability, Extended Health and Dental Insurance Underwritten by: Sun Life Assurance Company of Canada Group Policy No Short Term Disability Insurance Provision Underwritten by: Schenker of Canada Ltd.

3 Chapter Group File Your Group Insurance Booklet Keep in a safe place This booklet is a valuable source of information for you and your family. It provides the information you need about the group benefits available through your employer s group plan with Sun Life Assurance Company of Canada (Sun Life), a member of the Sun Life Financial group of companies. Please keep it in a safe place. We also recommend that you familiarize yourself with this information and refer to it when making a claim for group benefits. Your Plan Administrator is there to help Your plan administrator can: help you enrol in the plan provide you with the forms you need to claim group benefits answer any questions you may have Benefits and claims information at your fingertips For more information about your group benefits or claims, please call Sun Life's Customer Care Centre toll-free number at We're on the Internet! Learn more by surfing Sun Life's website. There's information about group benefits, and about Sun Life's products and services... and a whole lot more! Check us out! Our address is: Accessing your records For insured benefits, you may obtain copies of the following documents: your enrolment form or application for insurance. any written statements or other record, not otherwise part of the application, that you provided to Sun Life as evidence of insurability. For insured benefits, on reasonable notice, you may also request a copy of the policy. The first copy will be provided at no cost to you but a fee may be charged for subsequent copies. All requests for copies of documents should be directed to one of the following sources: our website at our Sun Life Financial Customer Care centre by calling toll-free at Your Group Insurance Booklet

4 Respecting Your Privacy At Sun Life Financial, protecting your privacy is a priority. We maintain a confidential file in our offices containing personal information about you and your contract(s) with us. Our files are kept for the purpose of providing you with investment and insurance products or services that will help you meet your lifetime financial objectives. Access to your personal information is restricted to those employees, representatives and third party service providers who are responsible for the administration, processing and servicing of your contract(s) with us, our reinsurers or any other person whom you authorize. In some instances these persons may be located outside Canada, and your personal information may be subject to the laws of those foreign jurisdictions. You are entitled to consult the information contained in our file and, if applicable, to have it corrected by sending a written request to us. You have a choice We will occasionally inform you of other financial products and services that we believe meet your changing needs. If you do not wish to receive these offers, let us know by calling SUN-LIFE ( ). To find out about our Privacy Policy, visit our website at or to obtain information about our privacy practices, send a written request by to privacyofficer@sunlife.com, or by mail to Privacy Officer, Sun Life Financial, 225 King St. West, Toronto ON M5V 3C5. The statements in this booklet are only a summary of some of the provisions in the master policy. If you need further details on the provisions which apply to your group benefits you must refer to the master policy (available from your plan administrator). Your Group Insurance Booklet

5 A ba00v Summary of Insurance Policy Number Life Insurance and Accidental Death and Dismemberment Insurance for Employees Class of Members Benefit Formula Maximum Benefit Flex Benefit Employees 2x annual earnings $500,000 Termination of Insurance: 70 th birthday or retirement, if earlier Dependant Life Insurance Spouse: $10,000 Each Child: $5,000 Termination of Insurance: member's 70 th birthday or retirement, if earlier Optional Life and Accidental Death and Dismemberment Insurance for Employees Class of Members Benefit Formula Maximum Benefit Flex Benefit Employees units of $10,000 $500,000 Termination of Insurance: 65 th birthday Optional Life and Accidental Death and Dismemberment for Spouse Class of Members Benefit Formula Maximum Benefit Flex Benefit Employees units of $10,000 $500,000 Termination of Insurance: the earlier of the member's 65 th birthday, member s retirement, or the spouse s 65 th birthday Short Term Disability Insurance Short Term Disability Insurance Provision is underwritten by Schenker of Canada Ltd. Summary of Insurance (ba00v) A-1

6 Long Term Disability Insurance Class of Members Benefit Formula Maximum Monthly Benefit Flex Benefit Employees 70% of monthly earnings $10,000 Monthly Disability Benefit All references to income below and in the Long Term Disability Insurance Provision are to the gross amounts before any deductions. Your monthly disability benefit is the lesser of 1. and 2. below: 1. the benefit formula applied to your gross monthly earnings, limited to the maximum monthly benefit, less any disability and retirement income you receive from: a. the Canada/Quebec Pension Plan or a similar pension plan, excluding benefits for dependent children. b. the Workers Compensation Act, Workplace Safety and Insurance Act or other similar legislation. c. an automobile insurance policy. d. the Québec Parental Insurance Plan. For the purpose of this provision, all payments under the Québec Parental Insurance Plan will be treated in the same manner as disability or retirement income % of your gross monthly earnings in force on the date you became totally disabled if the benefit is subject to income tax, or your net monthly earnings if the benefit is not subject to income tax, less any disability and retirement income you receive from: a. the Canada/Quebec Pension Plan or a similar pension plan, excluding benefits for dependent children. b. the Workers Compensation Act, Workplace Safety and Insurance Act or other similar legislation. c. an automobile insurance policy. d. another group insurance policy. e. a retirement income plan providing income that becomes payable after you are no longer actively at work. f. the Québec Parental Insurance Plan. For the purpose of this provision, all payments under the Québec Parental Insurance Plan will be treated in the same manner as disability or retirement income. If your employer pays any portion of the Long Term Disability premium, your monthly disability benefit is subject to income tax. If you pay 100% of the Long Term Disability premium, your monthly disability benefit is not subject to income tax. Total Disability and Totally Disabled: mean that, during the qualifying period and the 24 month period immediately following it, you have a medical impairment due to injury or disease which prevents you from performing, in any setting, the essential duties of the occupation in which you participated just before the total disability started, and after the 24 month period, you are unable, because of the medical impairment, to perform, in any setting, the essential duties of any occupation for which you have at least the minimum qualifications. The medical impairment must be supported by objective medical evidence. The availability of work for you does not affect the determination of totally disabled or total disability. Qualifying Period: 182 days Benefit Period: to 65 th birthday Termination of Insurance: 65 th birthday or retirement, if earlier Summary of Insurance (ba00v) A-2

7 Extended Health Insurance (Option 1) Any leftover plan credit will be put into a healthcare spending account. Carry over is only for one year. Part E Benefit Out-of-Province Emergency and Travel Assistance Termination of Insurance: member's retirement Deductible per family unit Extended Health Insurance (Option 2) Reimbursement none 100% Part Benefit Deductible per family unit Reimbursement A Drug: Pay Direct * 75%** B Vision: $100*** none 100% C Hospital: ward to semi-private none 100%**** D Supp. Health Care none 75% E Out-of-Province Emergency and Travel Assistance none 100% *The deductible is equal to the amount charged for the dispensing fee. **When $3,750 of out-of-pocket expenses have been incurred by you and each insured dependant under Part A in a calendar year, eligible expenses for the remainder of the calendar year will be reimbursed at 100%. ***Maximum for eyeglasses/contact lenses every 24 month period for you and for each insured dependant. ****Maximum reimbursement for convalescent hospital is 75%. Other maximums are listed under the appropriate Provision page. Termination of Insurance: member's retirement Drug coverage for Québec residents For all members under age 65 and members age 65 and over who are not covered by the Québec Drug Insurance Plan of the Régie de l'assurance-maladie du Québec (RAMQ) In addition to the above provisions, the following applies to the Drug Benefit for Québec residents who purchase an eligible drug that is included on the Régie de l'assurance-maladie du Québec (RAMQ) formulary: Annual Out-of-Pocket Maximum: The maximum for out-of-pocket eligible expenses is limited to the amount specified by law and applied in the provincial drug plan administered by the RAMQ. The annual out-of-pocket maximum amount applies separately to each adult under the plan. However, your out-of-pocket maximum includes expenses for each dependent child. Out-of-pocket eligible expenses include any deductible and co-payment. Reimbursement: The reimbursement percentage is applied up to the annual out-of-pocket maximum. After the annual maximum is reached, eligible expenses will be reimbursed at 100%. The reimbursement percentage applies after any deductibles have been satisfied. Termination of Insurance: member's retirement Summary of Insurance (ba00v) A-3

8 Extended Health Insurance (Option 3) Part Benefit Deductible per family unit Reimbursement A Drug: Pay Direct * 90%** B Vision: $250*** none 100% C Hospital: ward to private none 100%**** D Supp. Health Care none 90% E Out-of-Province Emergency and Travel Assistance none 100% *The deductible is equal to the amount charged for the dispensing fee. **When $1,500 of out-of-pocket expenses have been incurred by you and each insured dependant under Part A in a calendar year, eligible expenses for the remainder of the calendar year will be reimbursed at 100%. ***Maximum for eyeglasses/contact lenses every 24 month period for you and for each insured dependant. ****Maximum reimbursement for convalescent hospital is 90%. Other maximums are listed under the appropriate Provision page. Termination of Insurance: member's retirement Drug coverage for Québec residents For all members under age 65 and members age 65 and over who are not covered by the Québec Drug Insurance Plan of the Régie de l'assurance-maladie du Québec (RAMQ) In addition to the above provisions, the following applies to the Drug Benefit for Québec residents who purchase an eligible drug that is included on the Régie de l'assurance-maladie du Québec (RAMQ) formulary: Annual Out-of-Pocket Maximum: The maximum for out-of-pocket eligible expenses is limited to the amount specified by law and applied in the provincial drug plan administered by the RAMQ. The annual out-of-pocket maximum amount applies separately to each adult under the plan. However, your out-of-pocket maximum includes expenses for each dependent child. Out-of-pocket eligible expenses include any deductible and co-payment. Reimbursement: The reimbursement percentage is applied up to the annual out-of-pocket maximum. After the annual maximum is reached, eligible expenses will be reimbursed at 100%. The reimbursement percentage applies after any deductibles have been satisfied. Termination of Insurance: member's retirement Summary of Insurance (ba00v) A-4

9 Dental Insurance (Option 1) No coverage is available under Option 1: The plan credit will be put into a healthcare spending account. Dental Insurance (Option 2) Part Benefit Deductible per family unit A Diagnostic/ Preventive Reimbursement Maximum none 75% $1,500* B Restorative none 75% * D Periodontic none 50% * E Denture none 50% * F Bridge none 50% * G Crown none 50% * H Endodontic none 50% * *The maximum amount payable applies to the combined eligible expenses incurred in a calendar year under Parts A, B, D, E, F, G and H for you and for each insured dependant. Late Entrant Maximum: If your eligible dependant becomes insured more than 31 days after the date you became eligible for the Dental Insurance Provision, the maximum amount payable for the combined eligible expenses of all parts incurred during the first 12 months of insurance will be limited to $250 for each insured dependant. Termination of Insurance: member's retirement Dental Fee Guide: The applicable fee guide is the one in force for general practitioners on the day when and in the province where the expense is incurred or, for expenses incurred outside Canada, in the province of residence of the member. For expenses incurred in Alberta, or outside Canada by an Alberta resident, the applicable fee guide is the 1997 Alberta Fee Guide for general practitioners plus an inflationary adjustment determined by Sun Life. Summary of Insurance (ba00v) A-5

10 Dental Insurance (Option 3) Part A Benefit Diagnostic/ Preventive Deductible per family unit Reimbursement Maximum none 100% $2,000* B Restorative none 100% * C Orthodontic none 50% $1,500** D Periodontic none 70% * E Denture none 60% * F Bridge none 60% * G Crown none 60% * H Endodontic none 70% * *The maximum amount payable applies to the combined eligible expenses incurred in a calendar year under Parts A, B, D, E, F, G and H for you and for each insured dependant. **The maximum lifetime amount payable applies to the eligible expenses incurred under Part C. The Orthodontic benefit is for insured dependent children under age 22, or under age 25 if attending a college or university full-time. Late Entrant Maximum: If your eligible dependant becomes insured more than 31 days after the date you became eligible for the Dental Insurance Provision, the maximum amount payable for the combined eligible expenses of all parts incurred during the first 12 months of insurance will be limited to $250 for each insured dependant. Termination of Insurance: member's retirement Dental Fee Guide: The applicable fee guide is the one in force for general practitioners on the day when and in the province where the expense is incurred or, for expenses incurred outside Canada, in the province of residence of the member. For expenses incurred in Alberta, or outside Canada by an Alberta resident, the applicable fee guide is the 1997 Alberta Fee Guide for general practitioners plus an inflationary adjustment determined by Sun Life. Health Spending Account (Non-Insured Benefit) The calendar year is from January 1 to December 31. Plan credits: Remaining Flex credits on the commencement of each calendar year. If your coverage starts after the commencement of the calendar year, your plan credits are adjusted by the employer for that calendar year. If you need additional information, please contact your employer. Termination of Insurance: member's retirement Summary of Insurance (ba00v) A-6

11 F bf13v General Information Eligibility You are eligible, and continue to be eligible, to be a member while you meet all of the following conditions: 1. You are actively working for Schenker of Canada Limited. 2. You regularly work for Schenker of Canada Limited at least 20 hours each week. 3. You have been continuously employed by Schenker of Canada Limited at least as long as the waiting period. 4. You are a resident of Canada. Participation is compulsory with the exception of Optional Life and Optional Accidental Death and Dismemberment Insurance. If you are classified as a contract employee, owner-operator, consultant, hourly employee, independent or if you are self-employed, you are not eligible to join the plan. Waiting Period The first of the month following 3 full months of continuous employment You are eligible, and continue to be eligible, for dependant insurance while you meet all of the following conditions: 1. You are a member. 2. You have at least one dependant. 3. Your dependants are residents of Canada. Definitions Dependant means your spouse or a dependent child of you or your spouse. If Sun Life does not approve evidence of insurability required for a dependant, he will not be an insured dependant. Dependent Child means a natural, adopted or step-child who is not married or in any other formal union recognized by law, who is entirely dependent on you for maintenance and support and who is 1. under 22 years of age, 2. under 25 years of age (26 years of age for the Extended Health Benefit for Québec residents only) and attending a college or university full-time, or 3. physically or mentally incapable of self-support and became incapable to that extent while entirely dependent on you for maintenance and support and while eligible under 1) or 2) above. He, his and him refer to both genders. Spouse means your spouse by marriage or under any other formal union recognized by law, or a person of the opposite or same sex who is living with and has been living with you in a conjugal relationship. Enrolment To enrol for Optional Life Insurance submit a completed enrolment form and evidence of insurability to Sun Life. To enrol for Optional Dependant Life Insurance you must submit a completed enrolment form and evidence of insurability for your spouse to Sun Life. To enrol for all other insurance submit a completed enrolment form. If you have a dependant, request dependant insurance when you enrol. If you request dependant insurance more than 31 days after you become eligible, you are considered a late entrant and you must submit evidence of insurability for each dependant to Sun Life. If you have no dependant when you enrol and later acquire one, request dependant insurance, (eg. birth of first child, marriage). General Information (bf13v) F-1

12 If your new dependant is a common-law spouse, see your Plan Administrator to find out how to enrol for dependant insurance. For late entrants, evidence of insurability submitted to Sun Life is at your expense. Effective Date Your Optional Life Insurance is effective on the later of the date that you become eligible or the date that Sun Life approves the evidence of insurability. You become eligible for all other insurance on the first of the month coinciding with or following the date you become eligible. Your dependant insurance is effective on the latest of 1. the date that you become eligible for dependant insurance, 2. the date that you request dependant insurance, or 3. the date that Sun Life determines the insurability of all of your dependants, and approves at least one dependant. If you are absent from work on the date your insurance or your dependant insurance would be effective, then that insurance will not be effective until the date you return to active work. Changes in Insurance If you request an increase in the amount of Optional Life Insurance, you must submit evidence of insurability to Sun Life. If you request an increase in the amount of Optional Dependant Life Insurance, you must submit evidence of insurability for your dependants to Sun Life. The increase in the amount of insurance will be effective on the date that Sun Life approves the evidence of insurability. An increase in your benefits, the amount of your insurance or the amount of your dependant insurance due to a change in your group benefit plan s design or a change in your classification becomes effective on the date of the change, unless you are not actively working on that day due to disease or injury. If Sun Life doesn t approve an increase in the amount of your insurance or the amount of your dependant insurance, any future increase in the maximum benefit amount will not be effective unless evidence of insurability is approved. An increase in the maximum benefit amount will be effective on the date Sun Life approves the evidence of insurability. If, due to disease or injury, you are not actively working on the date an increase in your benefits, the amount of your insurance or the amount of your dependant insurance would be effective, the increase becomes effective on the date you return to active work. Sun Life may require evidence of insurability to establish the date that you are physically and mentally fit to return to active work. If so, the increase becomes effective on the date Sun Life establishes. If Sun Life doesn t approve the evidence of insurability required, the increase will not be effective. You may change the option elected on December first every year, every two years, if you are a member in Option 3. You may only move up or down one level at each enrolment. If you have an eligible personal status change during the plan year, you will be able to adjust your coverage immediately within 31 days of the event. Eligible status changes include: marriage or common-law relationship; birth, adoption or gaining legal custody of a child; the gain or loss of benefits coverage through a spouse s employer; divorce or legal separation; death of a dependant. Subrogation Subrogation is a legal practice giving Sun Life the right to be reimbursed for benefits paid to you if you have been compensated by another person who is responsible for your loss. The intent of subrogation is to limit your benefit payments to the amount you actually lost. Let's assume a person is responsible for your disability, and is required to compensate you for any of the loss that results from your disability. If Sun Life is paying or has paid your loss of income benefits, you may be receiving more General Information (bf13v) F-2

13 income than you earned before you became disabled. In that case, you would reimburse Sun Life for the loss of income benefits Sun Life has paid. If you receive an amount for future loss of income, that amount will reduce your future loss of income benefits from Sun Life. Subrogation also applies to any medical and/or dental expenses you have been paid as a result of an injury caused by another person. Once you are compensated by the person who is responsible for your loss, you must reimburse Sun Life. If subrogation applies to your claim, Sun Life will contact you to obtain the information required to proceed. You will be required to sign an undertaking to reimburse Sun Life for any amount recovered which exceeds 100% of income or expenses. Before agreeing to a settlement of your claim, Sun Life's approval must be obtained. Comparable Coverage If you are insured for comparable coverage under your spouse's plan, you may decline the Extended Health/Dental coverage offered under this plan. If this comparable coverage stops you will be insured for the similar coverage provided by this plan. If your dependant is insured for comparable coverage under another plan, you may decline the dependant coverage for the Extended Health/Dental coverage offered under this plan. If this comparable coverage stops, you may request the similar coverage offered under this plan. The insurance that replaces the comparable coverage is effective on the date that the comparable coverage stops. If you request the dependant coverage more than 31 days after the comparable coverage stops, you are considered a late entrant and you must submit evidence of insurability for each dependant to Sun Life. The insurance that replaces the comparable coverage is effective on the date that Sun Life approves the evidence of insurability. If Sun Life does not approve evidence of insurability required, the insurance will not be effective. Termination of Insurance Your insurance terminates on the date that you no longer meet all of the conditions for Eligibility. Your dependant insurance terminates on the date he no longer meets all of the conditions for eligibility for dependant insurance. If you, due to disease or injury, no longer meet all of the conditions, your insurance may be continued, subject to approval from Schenker of Canada Limited, until the date of termination of the insurance that is specified by Schenker of Canada Limited. Your insurance terminates on the date a work stoppage begins unless Schenker of Canada Limited has made special arrangements with Sun Life before that date to continue some or all of the insurance. However, your Long Term Disability Insurance will be continued during the notice period for termination of employment as required by relevant legislation. If you fail to tell Sun Life every fact material to your insurance or misrepresents those facts, that insurance is voidable. Statements made on your enrolment form or on an evidence of insurability form that are fraudulent or a misstatement of age may be contested at any time. Other statements are incontestable 2 years after the statements are made. General Information (bf13v) F-3

14 G bg02v013 Basic and Optional Life Insurance Provision for Employees Benefit The amount of benefit will be paid to your beneficiary upon your death. If no beneficiary has been appointed or if the beneficiary has predeceased you, payment will be made to your estate. A minor cannot personally receive a death benefit under the plan until reaching the age of majority. If you reside outside Québec and are designating a minor as your beneficiary, you may wish to designate someone to receive the death benefits during the time your beneficiary is a minor. If you reside outside Québec and have not designated a trustee, current legislation may require Sun Life to pay the death benefit to the court or to a guardian or public trustee. If you reside in Québec, the death benefit will be paid to the parent(s)/legal guardian of the minor on the minor s behalf. Alternatively, you may wish to designate the estate as beneficiary and provide a trustee with directions in your will. You are encouraged to consult a legal advisor. If you become totally disabled before age 65, your Life Insurance may be continued. Premiums for the continued insurance will be waived after you have been totally disabled from the same or related causes for six continuous months or, if you are also insured for group Long Term Disability Insurance with Sun Life, when you begin receiving group Long Term Disability payments. Claims A death claim must be received by Sun Life within 6 years of the date of death. The claimant must submit proof of the claim and the right to receive the benefit to Sun Life. If you become totally disabled and are also insured for group Long Term Disability Insurance with Sun Life, you must submit a disability claim along with your claim under the group Long Term Disability Insurance to Sun Life. If you become totally disabled and are not insured for group Long Term Disability Insurance with Sun Life, you must submit a disability claim to Sun Life after you have been totally disabled continuously for 6 months but not beyond 12 months after the date you became totally disabled. Limitation period for Ontario: Every action or proceeding against an insurer for the recovery of insurance money payable under the policy is absolutely barred unless commenced within the time set out in the Limitations Act, Limitation period for any other province: Every action or proceeding against an insurer for the recovery of insurance money payable under the policy is absolutely barred unless commenced within the time set out in the Insurance Act or other applicable legislation of your province or territory. Exclusion No benefit is payable for any amount of Optional Life Insurance that has been in force for less than 2 years if death is due to suicide while sane or insane. At Termination If your Life Insurance ends for any reason other than your request, you may apply to convert the group Life Insurance to an individual Life policy with Sun Life without providing evidence of insurability. The request must be made within 31 days of the reduction or end of the Life Insurance. There are a number of rules and conditions in the group policy that apply to converting this insurance, including the maximum amount that can be converted. Please contact your employer for details. Basic and Optional Life Insurance Provision for Employees (bg02v013) G-1

15 H bh01v009 Basic and Optional Dependant Life Insurance Provision Benefit The amount of benefit will be paid to you upon the death of your insured dependant. For Optional Spouse Life Insurance, if you have appointed a beneficiary, the amount of benefit will be paid to the beneficiary upon the death of your insured spouse. If you become totally disabled, your Dependant Life Insurance may be continued without payment of premiums as long as your Member Life Insurance premiums are waived. Claims A claim must be received by Sun Life within 6 years of the date of death. You must submit proof of claim and the right to receive the benefit to Sun Life. Limitation period for Ontario: Every action or proceeding against an insurer for the recovery of insurance money payable under the policy is absolutely barred unless commenced within the time set out in the Limitations Act, Limitation period for any other province: Every action or proceeding against an insurer for the recovery of insurance money payable under the policy is absolutely barred unless commenced within the time set out in the Insurance Act or other applicable legislation of your province or territory. Exclusion No benefit is payable for any amount of Optional Dependant Life Insurance that has been in force for less than 2 years if death is due to suicide, while sane or insane. At Termination If your Dependant Life Insurance for your spouse terminates due to the termination of your Member Life Insurance, your spouse may convert the amount of the dependant insurance terminated to an individual policy on his life. Your spouse must apply and pay the premium to Sun Life within 31 days after termination of insurance. Where necessary in order to comply with applicable legislation: If the dependant insurance for a child terminates due to the termination of your insurance, you may convert the amount of the dependant insurance terminated to an individual policy on the child s life without submitting evidence of insurability. The conditions that apply to the Conversion Privilege for the member's insurance will apply to the Conversion Privilege for the dependant insurance. If your Dependant Life Insurance terminates and the dependant dies within 31 days after termination of insurance, we will pay you the amount of insurance which could have been converted to an individual policy on the dependant life s through the Conversion Privilege of this provision, or the amount stipulated in any applicable legislation, if greater. Basic and Optional Dependant Life Insurance Provision (bh01v009) H-1

16 I bi01v009 Basic and Optional Accidental Death and Dismemberment Insurance Provision for Employees Benefit The amount of death benefit will be paid to your beneficiary upon your death. If no beneficiary has been appointed or, if the beneficiary has predeceased you, we will pay your estate. The amount of dismemberment benefit will be paid to you. A minor cannot personally receive a death benefit under the plan until reaching the age of majority. If you reside outside Québec and are designating a minor as your beneficiary, you may wish to designate someone to receive the death benefits during the time your beneficiary is a minor. If you reside outside Québec and have not designated a trustee, current legislation may require Sun Life to pay the death benefit to the court or to a guardian or public trustee. If you reside in Québec, the death benefit will be paid to the parent(s)/legal guardian of the minor on the minor s behalf. Alternatively, you may wish to designate the estate as beneficiary and provide a trustee with directions in your will. You are encouraged to consult a legal advisor. If a claim is submitted for Repatriation, we will pay your estate. If a claim is submitted for Occupational Training for Spouse, we will pay your spouse. If a claim is submitted for Education Benefit for Dependant Child, we will pay your dependent child. Depending on the loss suffered by you, the amount of benefit is limited to the percentage shown in the Schedule of Losses. Schedule of Losses Loss of Life 100% Hemiplegia 200% Paraplegia 200% Quadriplegia 200% Loss of Both Hands, Both Feet or Sight of Both Eyes 100% Loss of One Hand and One Foot 100% Loss of One Hand and Sight of One Eye 100% Loss of One Foot and Sight of One Eye 100% Loss of Speech and Hearing 100% Loss of Use of Both Hands or Both Feet 100% Loss of Use of One Hand and One Foot 100% Loss of One Arm or One Leg 75% Loss of Use of One Arm or One Leg 75% Loss of One Hand, One Foot or Sight of One Eye 67% Loss of Use of One Hand or One Foot 67% Loss of Speech or Hearing 50% Loss of Hearing in One Ear 50% Loss of Thumb and Index Finger of One Hand 33% Loss of Four Fingers of One Hand 33% Loss of All Toes of One Foot 25% If you suffer more than one of the losses listed above as a result of one accident, Sun Life will pay the amount of benefit for only one loss. That loss will be the highest of the losses suffered by you. When proof is received by Sun Life that you have suffered any of the losses due directly to bodily injury caused solely by an accident, the amount of benefit will be paid, provided all of the following conditions are met: The accident must occur while you are insured under this provision. The loss must occur within 365 days of the date of the accident. If you become totally disabled, your Accidental Death and Dismemberment Insurance may be continued without payment of premiums as long as your Member Life Insurance premiums are waived. Basic and Optional Accidental Death and Dismemberment Insurance Provision for Employees (bi01v009) I-1

17 Repatriation If you suffer loss of life, we will pay the reasonable and customary expenses, limited to a maximum of $10,000, for the preparation and transportation of your body from the place of the accident to your place of permanent residence. The accidental death must occur at a distance of 150 kilometres or more from your place of permanent residence. Rehabilitation If you suffer any of the losses, we will pay the reasonable and customary expenses, limited to a maximum of $10,000, to train you for active employment in an occupation for which you would not have engaged except for those injuries. The expenses must be incurred within 2 years of the date of the accident. No payment will be made for room or board or other ordinary living, travelling, or clothing expenses. Occupational Training for Spouse If you suffer loss of life, we will pay the reasonable and customary expenses, limited to a maximum of $10,000, to enrol your spouse in an accredited occupational training program to qualify him for active employment in an occupation for which he would not otherwise have sufficient qualifications. The expenses must be incurred within 3 years of the date of the accident. No payment will be made for room or board or other ordinary living, travelling, or clothing expenses. Education Benefit for Dependent Child If you suffer loss of life, we will pay the reasonable and customary tuition expenses to enrol your dependent child as a full-time student at a post-secondary institution provided 1. your dependent child is enrolled as a full-time student at a post-secondary institution at the time of the accident, or 2. your dependent child is a student at the secondary school level and, within 365 days of the date of the accident, he enrols as a full-time student at a post-secondary institution. The maximum amount of benefit payable for each year that your dependent child is enrolled as a full-time student at a post-secondary institution will be the lesser of: 1. 5% of your amount of benefit, or 2. $5,000. The amount of benefit will be paid each year, up to 4 consecutive years, after we receive proof that your dependent child is enrolled as a full-time student at a post-secondary institution. No payment will be made for: 1. tuition expenses incurred before the date of the accident. 2. room or board or other ordinary living, travelling, or clothing expenses. A post-secondary institution includes any accredited university, colleges d'enseignement general et professionnel, trade school, community college, or private college that provides an education above the secondary school level. Claims A death claim must be received by Sun Life within 6 years of the date of death. A claim for a loss must be received by Sun Life within 3 months of the date of the loss. All other claims must be received by Sun Life within 3 months of the date that the expense is incurred. The claimant must submit proof of claim and the right to receive the benefit to Sun Life. Limitation period for Ontario: Every action or proceeding against an insurer for the recovery of insurance money payable under the policy is absolutely barred unless commenced within the time set out in the Limitations Act, Basic and Optional Accidental Death and Dismemberment Insurance Provision for Employees (bi01v009) I-2

18 Limitation period for any other province: Every action or proceeding against an insurer for the recovery of insurance money payable under the policy is absolutely barred unless commenced within the time set out in the Insurance Act or other applicable legislation of your province or territory. Exclusions No benefit is payable for a loss directly or indirectly due to 1. suicide, while sane or insane, 2. self-inflicted injuries, while sane or insane, 3. disease, 4. civil disorder or war, whether or not war was declared, 5. full-time service in the armed forces of any country, 6. injuries received while riding in, or on, or boarding or alighting from an aircraft if, when the injuries were received, a. you were operating, learning to operate or serving as a member of a crew of any aircraft, or b. the aircraft was being used for crop dusting, crop spraying, seeding, sky-writing, racing, testing, exploration or any other purpose except transportation. Basic and Optional Accidental Death and Dismemberment Insurance Provision for Employees (bi01v009) I-3

19 J bj01v006 Optional Accidental Death and Dismemberment Insurance Provision for Spouse Benefit The amount of benefit will be paid to you. For Optional Spouse Accidental Death and Dismemberment Insurance, if you have appointed a beneficiary, the amount of benefit payable as a result of your spouse's death will be paid to the beneficiary. Depending on the loss suffered by your insured dependant, the amount of benefit is limited to the percentage shown in the Schedule of Losses. Schedule of Losses Loss of Life 100% Hemiplegia 200% Paraplegia 200% Quadriplegia 200% Loss of Both Hands, Both Feet or Sight of Both Eyes 100% Loss of One Hand and One Foot 100% Loss of One Hand and Sight of One Eye 100% Loss of One Foot and Sight of One Eye 100% Loss of Speech and Hearing 100% Loss of Use of Both Hands or Both Feet 100% Loss of Use of One Hand and One Foot 100% Loss of One Arm or One Leg 75% Loss of Use of One Arm or One Leg 75% Loss of One Hand, One Foot or Sight of One Eye 67% Loss of Use of One Hand or One Foot 67% Loss of Speech or Hearing 50% Loss of Hearing in One Ear 50% Loss of Thumb and Index Finger of One Hand 33% Loss of Four Fingers of One Hand 33% Loss of All Toes of One Foot 25% If your insured dependant suffers more than one of the losses listed above as a result of one accident, Sun Life will pay the amount of benefit for only one loss. That loss will be the highest of the losses suffered by your insured dependant. When proof is received by Sun Life that your insured dependant has suffered any of the losses due directly to bodily injury caused solely by an accident, the amount of benefit will be paid, provided all of the following conditions are met: The accident must occur while your dependant is insured under this provision. The loss must occur within 365 days of the date of the accident. No benefit is payable for any loss suffered by an insured dependant if the loss occurs before he reaches the age of 2 years. If you become totally disabled, your Dependant Accidental Death and Dismemberment Insurance may be continued without payment of premiums as long as your Member Life Insurance premiums are waived. Repatriation If your dependant suffers loss of life, Sun Life will pay the reasonable and customary expenses, limited to a maximum of $10,000, for the preparation and transportation of your dependant's body from the place of the accident to his place of permanent residence. The accidental death must occur at a distance of 150 kilometres or more from your dependant's place of permanent residence. Optional Accidental Death and Dismemberment Insurance Provision for Spouse (bj01v006) J-1

20 Claims A death claim must be received by Sun Life within 6 years of the date of death. A claim for a loss must be received by Sun Life within 3 months of the date of the loss. All other claims must be received by Sun Life within 3 months of the date that the expense is incurred. The claimant must submit proof of claim and the right to receive the benefit to Sun Life. Limitation period for Ontario: Every action or proceeding against an insurer for the recovery of insurance money payable under the policy is absolutely barred unless commenced within the time set out in the Limitations Act, Limitation period for any other province: Every action or proceeding against an insurer for the recovery of insurance money payable under the policy is absolutely barred unless commenced within the time set out in the Insurance Act or other applicable legislation of your province or territory. Exclusions No benefit is payable for a loss directly or indirectly due to 1. suicide, while sane or insane, 2. self-inflicted injuries, while sane or insane, 3. disease, 4. civil disorder or war, whether or not war was declared, 5. full-time service in the armed forces of any country, 6. injuries received while riding in, or on, or boarding or alighting from an aircraft if, when the injuries were received, a. your insured dependant was operating, learning to operate or serving as a member of a crew of any aircraft, or b. the aircraft was being used for crop dusting, crop spraying, seeding, sky-writing, racing, testing, exploration or any other purpose except transportation. Optional Accidental Death and Dismemberment Insurance Provision for Spouse (bj01v006) J-2

21 Short Term Disability Insurance Provision Underwritten by: Schenker of Canada Ltd. Benefit Short term disability benefits are provided by the Schenker Short Term Disability Plan when you are temporarily unable to perform the normal duties of your occupation because of an illness or injury. In the case of mental stress, you will only be entitled to recover these benefits for mental stress that does not result from an injury for which you are otherwise entitled to compensation, when that mental stress: a. is an acute reaction to a sudden and unexpected traumatic event arising out of and in the course of your employment, b. is diagnosed by a physician as a mental or physical condition that is described in the most recent American Psychiatric Association s Diagnostic and Statistical Manual of Mental Disorders at the time of the diagnosis, and c. is not caused by a decision or action on the part of Schenker of Canada relating to your employment, including, without limiting the generality of the foregoing, a decision or action to change the terms and conditions of your employment or the work to be performed by you, to discipline you, or to terminate your employment. Schenker s short term disability plan will maintain your salary (or a percentage thereof) for a period of time determined by the disability benefit credits to which you are entitled. Credits are awarded according to the length of service with the Company according to the following schedule: Years of Service Full Salary Followed by 66 2/3% 3 months 1year 02 weeks 24 weeks 1 year to 3 years 04 weeks 22 weeks 3 years to 5 years 06 weeks 20 weeks 5 years to 7 years 08 weeks 18 weeks 7 years to 9 years 10 weeks 16 weeks 9 years to 10 years 12 weeks 14 weeks 10 years or more 15 weeks 11 weeks If you return to work on a full time basis and have a recurrence of the same or related disability within three months, sick pay will be determined as if the disability was continuous with no return to work. After three months, sick pay will be determined as if there had been no previous disability. If you return to work on a full time basis and become disabled again after one month due to causes unrelated to the previous disability, sick pay will be determined as if there had been no previous disability. Medical Certification of Disability To recover short term disability benefits for an absence in excess of 3 days, your application must be supported by a note from your doctor describing the nature of your illness or injury and confirming that you are totally disabled from working because of it. The company reserves the right to also ask for such documentation when you have been absent for less than 3 days, but in frequent intervals accumulating 5 days absence in one month. To recover short term disability benefits for an absence in excess of 2 weeks, an evaluation by our insurance company will be performed. As a result, your application must be supported by a formal written report from your doctor and any specialist being consulted detailing the nature of your illness or injury, confirming that you are totally disabled from working because of it and providing a prognosis on the date that you will likely be able to return to work. With those report(s), there must be included, copies of the clinical notes showing the dates of your visits to the doctor(s), the treatments prescribed and any consultation reports or test results prepared. At the request of the insurance company, we may require you to undergo an independent examination by a physician of our choice at our expense to verify the nature and extent of your disability. Short Term Disability Insurance Provision K-1 December 1, 2007

22 Subrogation Subrogation is a legal principle which gives Schenker the right to be reimbursed for benefits it pays to you when another person has caused your illness or disability. Schenker s right of subrogation not only entitles it to be repaid the short term disability benefits which it has paid when you recover damages from such a third party, but to pursue your legal rights and remedies against such third party in your name if it chooses to do so. Let s assume another person has caused you to be disabled from working, and is required to compensate you for your losses. If Schenker has paid or is paying you short term disability benefits, you may receive more income while disabled from work than you would have earned if not disabled. In that case, the principle of subrogation requires you to reimburse Schenker for the loss of income benefits Schenker has paid. If you receive money from a third party for future loss of income, that amount recovered would reduce the amount of future short term disability benefits to be paid by Schenker. If subrogation applies to your claim for benefits, you must keep Schenker fully advised of the incident which gives rise to the illness or disability, and the steps you take or could take to recover the loss from a third party. As a condition of paying you the benefits, Schenker will require you to sign an undertaking to reimburse Schenker for any amount recovered from the third party or their insurer which exceeds 100% of the income or expenses which you would have lost but for the Schenker benefit program. Before agreeing to settle your claim against the third party, you must obtain Schenker s approval and consent. Short Term Disability Insurance Provision K-2 December 1, 2007

23 L bl02s019 Long Term Disability Insurance Provision Qualifying for Monthly Disability Benefits You qualify for benefits when Sun Life receives proof that: 1. you are absent from active work because you are totally disabled, 2. you are totally disabled for as long as the qualifying period, and 3. you are under the active and continuous care of a physician whom Sun Life considers to be appropriate to your total disability and you are following the treatment prescribed by that physician. Your Monthly Disability Benefit Your monthly disability benefit is calculated as shown on the Summary of Insurance at the front of this booklet. Income to which you are entitled under a government plan will reduce your monthly disability benefit unless Sun Life receives proof that the initial application and an appeal, or a later re-application required by Sun Life, have been declined. Increases in the disability income payable under a government plan may occur because of an automatic adjustment in the cost of living. These increases will not further reduce your monthly disability benefit. The total income you receive from all sources will not be less than your monthly disability benefit. Your monthly disability benefit will not be reduced by any disability or retirement income you receive from the following sources: 1. a policy which is solely an individual disability income policy. 2. a disability attachment to an individual life insurance policy. 3. a retirement income plan providing income that becomes payable before you become totally disabled. Rehabilitation If your total disability prevents you from returning to work, Sun Life may be able to assist you by providing a rehabilitation program that will help you return to the workforce. A rehabilitation program is limited to one or more of the following: 1. assessment, 2. counselling, 3. vocational retraining or an educational program, 4. trial work, part-time or modified work. If, after qualifying for benefits, you are receiving income from an approved rehabilitation program, your monthly disability benefit is reduced by 50% of that income. Your monthly disability benefit is further reduced so that the total income from all sources does not exceed 100% of your gross monthly earnings in force on the date you became totally disabled, if the benefit is subject to income tax, or net monthly earnings, in force on the date you became totally disabled, if the benefit is not subject to income tax. Example: Assume you are earning $2,000/month and have a 66 2/3% LTD benefit ($1,334.00). Rehabilitation income from your employer is $1,000/month. There is no income from other sources. Rehabilitation Income + (Monthly Disability Benefit - 50% of Rehabilitation Income) = $1,000 + ($1, {50% of $1,000}) = $1,000 + $ = $1, Since the benefit ($1,834.00/month) does not exceed your pre-disability monthly earnings ($2,000/month), there will be no reductions due to the 100% all source maximum. Long Term Disability Insurance Provision (bl02s019) L-1