What are income replacement benefits?
If you have been in an accident in Ontario and have suffered a personal injury, you are most likely eligible for Ontario accident benefits. Ontario accident benefits can partially compensate you for any losses of income if you are unable to work because of your injuries. You are only eligible for income replacement benefits if you were employed at the time of the accident or, subject to certain conditions, during the year prior to the accident.
You may be eligible to receive income replacement benefits every two weeks to partially replace lost income due to your motor vehicle accident. This includes motorcycle accidents, boating accidents, ATV accidents, etc… If you are unable to perform your job, you may receive income replacement benefits for up to 104 weeks following the onset of your disability. You may qualify for income replacement benefits:
- Did I suffer physical or psychological impairments as a result of a motor vehicle collision and, as a result, am I unable to work?
- Do any of the following statements apply to you?
- Were you employed or self-employed at the time of the motor vehicle accident?
- Have you worked for at least 26 of the 52 weeks prior to your accident?
- Were you receiving Employment Insurance (EI) benefits at the time of your accident?
- Were you unemployed but were at least 16 years of age or excused from attending school at the time of your accident?
If you answered “yes” to the above questions and qualify for income replacement benefits, you may also be eligible and elected to receive a non-earner benefit or caregiver benefit instead. In this case, you will be disqualified from receiving income replacement benefits. If you are unsure of which benefits to elect, contact a personal injury lawyer so they can best advise you as to which accident benefits will be best for you.
How much do you receive for income replacement benefits?
If you are eligible to receive income replacement benefits, you will receive a payment at least once every second week of 70% of your gross income salary minus any income replacement assistance paid by other sources, such as your employer, to a maximum of $400 per week. If you continue to qualify for income replacement benefits after 104 weeks, your minimum weekly benefit will be $185. The first week of your disability is not covered.
When you purchased your car insurance, you may have opted to purchase additional income replacement benefits from your insurance company which may pay up to $600, $800 or $1,000 per week depending on how much additional insurance coverage you purchased. If you are unsure whether or not you are entitled to additional income replacement benefits, contact your lawyer. They can help answer that question once they have reviewed your insurance policy.
Your gross income is your income before any deductions and taxes. The gross income amount you receive will be calculated on the information you put down on your application form. In general, income replacement benefits are calculated as follows:
- If you are employed at the time of the accident, income replacement benefits are based on your gross income either: in the 52 weeks before your accident or in the 4 weeks before your accident multiplied by 13.
- If you were self-employed at the time of your accident, income replacement benefits are based on actual income earned in the last 52 weeks or in the last fiscal year completed before the accident.
- If you were not working at the time of your accident but you were receiving EI benefits or had worked at least 26 weeks of the 52 weeks before your accident, the income replacement benefits will be based on income earned in the 52 weeks before your accident including your EI benefits.
- If you are over the age of 65, income replacement benefits are payable for up to 208 weeks and are gradually reduced.
- If you are 65 years old and are receiving income replacement benefits, your income replacement benefits are converted to a lifetime pension at a reduced rate.
We work day in, day out, with Ontario insurance claims and know how to ensure that our clients are receiving all the Ontario accident benefits they are entitled to. Do yourself a favour and take a free consultation from a personal injury lawyer.
