GET A FREE CONSULTATION

Blog

What are Income Replacement Benefits?

Embed
Scripts
If your injuries after an accident stop you from working, here’s some good news: you’re entitled to Income Replacement Benefits. It doesn’t matter who’s at fault in the accident – if you have a standard Ontario auto insurance policy, there are benefits available to you.

The Income Replacement Benefit is a benefit that partially compensates you for any loss of income if you can’t work because of your injuries. It applies to both physical and psychological injuries.

To qualify, you need to prove those injuries. Also, you are required to have been employed or self-employed at the time of the accident, or working for 26 of the 52 weeks prior to the accident. You qualify if you’re receiving Employment Insurance benefits. If you’re not employed, but are at least 16 years old or you were excused from attending school at the time of the accident, you are still eligible.

You have to inform your insurer that you want to apply for benefits within a week of the accident. A personal injury lawyer knows the various filing deadlines, as well as the maximum benefits – including Income Replacement Benefits – that you can receive after an accident.
<iframe src='http://blog.sokoloff.ca/engage-video/8148' width='650' height='390' scrolling='no' webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>

What post-accident compensation is available to workers?

 
Ontario’s Insurance Act mandates income replacement benefits for crash victims. The Income Replacement Benefits plan will partially compensate you for any loss of income you suffer as a result of your injuries. It applies to both physical and psychological damage. Because the legislation is no-fault, the benefits are available to you, provided that you have valid car insurance.
 
To qualify, you must initiate the claims process with your insurer within seven days of the accident. You need to prove your injuries, of course. Also, you have to have been employed or self-employed at the time of the accident. It is sufficient if you were previously working 26 of the 52 weeks. You even qualify if you are receiving Employment Insurance (E.I.) benefits. You are still eligible for coverage if you’re not employed but at least 16 years old – or were excused from attending school at the time of the accident.
 

Are there other forms of coverage as well?

 
In other words, coverage is broad. The benefits offered by the Insurance Act are quite comprehensive and extend far beyond income replacement. A good personal injury lawyer can help guide you through the claims process and ensure that you are compensated in any of the other categories you fall under. For example, there is an Attendant Care Benefit if you require physical assistance after your injuries. There is also assistance with medical and rehabilitation costs – and even money for funerals.
 
A cautionary note: there are deadlines to be met. Also, keep in mind that you are being compensated by your insurance company. That company may have an interest in minimizing your coverage; a personal injury lawyer will ensure that you get  the maximum income replacement benefits to which you are entitled.
 

Who are income replacement benefits for?

 
If you were employed prior to a car accident, you may be eligible for income replacement benefits. If you have lost your income for a period of time due to the accident, you may be eligible to receive a payment to replace your income every two weeks.
 

Are you eligible for income replacement benefits?

 
Your lawyer will be able to determine if you are eligible for income replacement benefits, although there are a few questions that you can answer on your own to see if you qualify.
 

If you answer "yes” to these questions, then you may be eligible for income replacement benefits:

  • Did you suffer a physical or psychological injury within two years of a motor vehicle accident and are you disabled from working as a result of this?
  • Were you employed prior to the accident?
  • Did you work for a length of 26 weeks in the last 52 weeks prior to the accident?
  • Were you receiving Employment Insurance Benefits?
If you can answer any of these questions with a "yes” answer then you might be eligible, but contact a lawyer to ensure that you receive the maximum income replacement benefits that you are entitled to.