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A Vietnam veteran sued his insurance company for cutting his monthly payment because he was also drawing monthly veteran disability benefits. A federal court originally found in favor of the insurance company, but the 8th Circuit Court of Appeals overturned that decision, according to a recent article in Forbes.
James Riley was forced to stop working due to his multiple sclerosis (MS), and his insurance policy began paying him his benefits until the insurance company realized Riley was drawing veterans' disability benefits for his MS that he developed from his Vietnam service.
After 2 years of paying benefits, Riley's insurance company proceeded to diminish the monthly amount they were paying him by the amount he was drawing in disability. Additionally, his insurance company wanted him to pay back $21,000 in payments he had already received.
According to the 8th Circuit Court of Appeals, the Veterans Benefits Act isn't the same type of benefit as either the Railroad Retirement or the Social Security acts. Both of those acts can both be used to reduce monthly insurance payments because they're federal insurance programs. On the other hand, VA benefits don't depend on "pay-ins" but rather serve as "obligatory compensation" for injured veterans.
MS is presumed to have been "incurred or aggravated" by military service if it develops within 7 years from the veterans' date of service under federal law. It's possible the 8th Circuit will be asked to review the case.
If you are a disabled veteran who has been denied disability compensation or have not yet applied for benefits from the VA, a South Florida disability attorney from LaVan & Neidenberg is ready to help. To learn if you are entitled to certain programs and benefits contact our veterans disability rights firm today - 1-888-234-5758.
Soldiers can return home with a number of conditions, injuries, and aggravated preexisting conditions. If you believe you have a service-connected physical or psychological injury you may be entitled to Veterans’ Disability Compensation.
At LaVan and Neidenberg, we are determined to secure veterans their rightful disability compensation and disability rating. We wrote this book for you! In it you will find valuable tips on how to navigate the claims process and avoid common pitfalls. Request your FREE copy today!
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