Accidents and Income Replacement Benefits
2 Minute read from Car Accident Lawyer Hamilton
If you or a loved one has been hurt in a motor vehicle accident and can’t work, you are entitled to an income replacement benefit from your own insurance company or if you don’t have insurance – from any vehicle that was involved. The payment of income replacement benefits (“IRBs”) can help ensure that you have some financial assistance while you start to concentrate on your rehabilitation. You are only entitled to an income replacement benefit if you have been hurt in a wreck involving a vehicle – and not a slip and fall type accident. Your insurance company will pay you, if you are eligible, an income replacement benefit for the first two years after the accident on a weekly basis if you suffer a substantial inability to perform the essential tasks of the job you were doing before the accident.
How is my income replacement benefit calculated?
Your insurance company will typically look at what you made in the last 4 weeks before the accident or, if you were not working at the time of the accident, will base the amount it on the last 26 of 52 weeks before the accident.
When and how long can I get an IRB for?
You insurance company is not required to pay an income replacement benefit to you for 1) the first 7 days after the accident or 2) after the two year mark, unless, as a result of the accident, you’re suffering a complete inability to engage in any employment or self-employment for which he or she is reasonably suited by education, training or experience. The amount of IRB changes when you turn 65. If you are receiving an income replacement benefit immediately before your 65th birthday, the weekly amount of the IRB will be ramped down over four years.
How much income replacement benefit am I entitled to?
Your insurance company will pay you up to a maximum of $400.00 per week. If your income losses are in excess of $400/weekly, you would need to make up that income in a lawsuit against the at-fault driver that caused your injuries. You are only entitled to receive up to 70% of your gross income that you made prior to your injury. If you purchased optional benefits, your income replacement could then be increased to a weekly maximum of $600, $800 or $1,000, or whatever amount you selected when you purchased your policy.
Questions or concerns about your income replacement benefit?
However, far too often, insurers cut-off IRB’s despite a lack of proper rationale for their decision. Insurers all too often take a trigger-happy approach to adjusting, which aims to save insurers money instead of providing much needed assistance to injured individuals. If you or a loved one has been critically hurt and you need assistance in applying for an income replacement benefit please do not hesitate to contact us. We would be happy to provide you with a free consultation and provide you and your family with the best options for your current situation. Please call us at 905-333-8888 or chat with our live operator who will be happy to help you set up an appointment.