A Manitoba government worker diagnosed with long COVID and another health issue is taking legal action against the province and Canada Life for refusing her long-term disability claim. The employee, who managed the Legislative Assembly gift shop since 2014, was part of a group disability plan managed by Canada Life on behalf of the province.
Although the insurance company denied her claim, the lawsuit alleges that the Manitoba government had the authority to overturn the decision. The employee’s medical conditions, long COVID, and chronic fatigue syndrome, were cited as reasons preventing her from fulfilling her regular job duties.
After submitting a claim for long-term disability in November 2024 due to her inability to work, the employee received a denial letter from Canada Life in April 2025. The insurer stated that based on medical information, she could still perform sedentary tasks and was not completely hindered from her role as a gift shop manager, which the court document contested.
As the manager of the gift shop, the lawsuit outlined various responsibilities such as purchasing, supplier meetings, budgeting, administration, sales, and loss prevention, highlighting that the job was not sedentary as claimed by Canada Life. The employee sought 70% of her bi-weekly earnings as disability benefits.
Despite a medical review acknowledging the employee’s fatigue-related limitations, Canada Life arranged for an independent examination by a physiatrist, who mentioned symptoms resembling Long COVID. The physiatrist suggested further assessments, which were allegedly disregarded by the defendants.
The lawsuit contended that the denial of benefits caused financial strain and exacerbated the employee’s condition, leading to stress and anxiety. Seeking approval for disability benefits from December 14, 2024, onwards, the legal action also demanded additional damages and legal costs. The plaintiff accused Canada Life and the Manitoba government of unjustly rejecting her entitlement to long-term disability benefits.
The case remains pending in court, with no defense statements filed by the defendants. While the plaintiff’s lawyer declined to comment, the Manitoba government refrained from providing a statement due to the ongoing legal proceedings. CBC News attempted to contact Canada Life Assurance Company for a response but has not received any comments regarding the lawsuit.