Income Replacement Benefits on the Average Claim for a Car Accident

By Mark
Edited by Admin
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Though the average claim for a car accident might not involve a serious personal injury which leaves the victim with permanent impairments, motor vehicle accidents causing personal injury are still extremely common in Canada. Over the last ten years, the Canadian roadways have averaged nearly 150,000 automobile collisions that caused nearly 200,000 personal injuries.


Income Replacement Benefits


Income replacement benefits (or IRBs) are one of the six benefits guaranteed by law in any Ontario insurance policy, as any experienced Toronto personal injury lawyer knows. An IRB is essentially a weekly payment designed to replace the income that the injured party would have earned had their injury not prevented them from working. IRBs are, however, subject to certain stipulations.


Limits on IRBs


  • Time: An injured person is only allowed to receive an IRB from their insurer for a maximum of 104 weeks (i.e. two years from receipt of the first benefit payment). The average claim for a car accident involves injuries far less severe than two years of missed employment, however.
  • Amount of Payment: With a standard minimum insurance plan, IRB payments are capped at 70 per cent of the injured person’s gross income or a maximum flat value of $400 per week (there is also a minimum flat value of $185 per week).


There are also limits on certain soft tissue injuries that commonly represent less time off from employment, such as whiplash injuries. If you suffer whiplash, you can only claim IRBs for 12 to16 weeks.


If you believe your income replacement benefits are inadequate, contact a Toronto personal injury lawyer to get the compensation you need.