Ontario Accident Benefits: Income Replacement Benefits
Are you entitled to Income Replacement Benefits?
If you suffer personal injury and are unable to work, you may be entitled to income replacement benefits through your Ontario accident benefits. Income replacement benefits in Ontario are partial compensation and are only available if you cannot fully return to work because of the injuries caused by the accident.
What are the criteria for income replacement benefits?
Income replacement benefits are only available to accident victims who were employed at the time of the accident or depending on the circumstances, during the year before the accident. Typically, these benefits are paid out every 2 weeks and partially cover any lost income as the result of an Ontario accident. IRBs are typically paid up to 104 weeks after it is identified that the injury has prevented a return to work.
What must be established to receive income replacement benefits?
To receive income replacement benefits in Ontario, it must be established that the injured suffered physical or psychological impairments as a result of the accident and that they are unable to work. You must also establish that you were employed or self-employed at the time of the accident or that you worked at least 26 of the 52 weeks prior to the accident. In certain cases, income replacement benefits can also be collected if the injured was collecting Employment Insurance (EI) benefits at the time of the accident.
When can you start collecting benefits?
After the first week of your disability, you can begin to be compensated.
How are income replacement benefits calculated?
Income replacement benefits are calculated by taking 70% of your gross income, minus income replacement assistance payable from other sources (employer) to a maximum of $400 per week. If you continue to qualify for income replacement benefits after 104 weeks, your minimum weekly income replacement benefit then drops to $185.
Is there extra coverage for income replacement benefits?
Hopefully, you opted for additional coverage. Yes, this is an added expense, but an expense that pays off, should you need it. Additional income replacement benefits pay up to $600, $800 or $1,000 per week, depending on when you purchased your additional coverage.
Can I receive income replacement benefits if I am self-employed?
If you were self-employed at the time of your accident, income replacement benefits are based on 70% of your weekly net self-employed income earned in the past 52 weeks; or the last fiscal year completed prior to the accident.
Can I receive income replacement benefits if I am unemployed?
If you were unemployed at the time of the accident and receiving Employment Insurance benefits, or had been working at least 26/52 weeks before the accident, the income replacement benefits are based on income earned in the 52 weeks before the collision inclusive of your Employment Insurance benefits.
Can I receive benefits if I am over 65 years old?
If you are over the age of 65, income replacement benefits are paid up to 208 weeks. If you turn 65 while receiving income replacement benefits, the benefit is converted to a lifetime pension at a reduced rate.
The laws surrounding income replacement benefits in Ontario can be confusing. It is always best to consult a personal injury lawyer to answer any questions you may have.