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While we never want to think about being involved in a motor vehicle accident, the reality is that they can happen. If you ever find yourself in this situation, it’s important that you know what you’re entitled to. Being Canada’s largest personal injury law firm, Diamond and Diamond has the expertise necessary to help guide you through the aftermath of a motor vehicle accident. Nastassia Ivanova, the Director of Diamond Law’s Accident Benefits Department, discusses a few things that you need to know about income replacement benefits after an accident:
What are Income Replacement Benefits?
“One of the most common things we’re asked about is what happens when you’re unable to return to work as a result of a motor vehicle accident,” says Nastassia Ivanova. The reality is that your accident benefit provider may need to compensate you with 70% of your gross loss to a maximum of $400 per week depending on your insurance policy (whichever is less). In order to be eligible for income replacement benefits, the individual’s injuries sustained from their accident must prevent them from being able to go back to work. In addition to this, the individual must be over the age of 16, employed, self-employed, or not employed* (but was formally employed for at least 26 weeks within a 52-week period before the accident).
Are There Any Alternatives to Income Replacement Benefits if You’re Deemed Ineligible?
“While the answer to this will vary from case to case, the reality is that there are options if you’re not eligible for income replacement benefits,” says Ivanova. For example, even if you were not employed prior to your accident, you could be eligible for non-earner benefits. The non-earner benefit pays an individual $185 a week. To qualify, the insured person must be totally unable to live an everyday life due to injuries sustained in a motor vehicle accident.
Additional Frequently Asked Questions
Question: Are income replacement benefits taxable?
Answer: Under the Income Tax Act enacted by the Government of Canada, income replacement benefits are not subject to tax.
Question: How long are you eligible for income replacement benefits?
Answer: an individual may be eligible for income replacement benefits up to a maximum of 2 years, or 104 weeks. After this, you will need to speak with your lawyer about what benefits you’re eligible for.
If you’ve been involved in a motor vehicle accident, it’s important to speak with an expert who can help you through the next steps. Contact Diamond and Diamond today at 1-800-567-HURT to schedule a free consultation.
About Jeremy Diamond
Jeremy Diamond is a lawyer and member of both Ontario and Florida Bars. Jeremy practices in the area of Plaintiff personal injury litigation. Click here to learn more about Jeremy Diamond.
