You probably might be eligible for income replacement benefits after being involved in a car accident and unable to work. The amount of your loss of income and the extent of your injury will determine whether you qualify for compensation. Please find out more about Income Replacement Benefits, or IRBs as they’re colloquially known.
Income Replacement Benefits: What Are They?
IRBs pay weekly compensation to people injured in car accidents, including workers, students, children, retirees, and the unemployed. To qualify for an IRB, you must have “substantial difficulties carrying out the essential functions of your employment” (including self-employment) due to your car accident. Several factors determine if a person meets these criteria to receive an IRB. These include:
- Having a job or being self-employed when the crash occurred
- Having worked for 26 or more weeks out of the 52 leading up to the crash
- Being covered by employment insurance at the time of the accident
- When the collision occurred, you must be unemployed and at least 16 years old.
How Much Will You Be Compensated For Your Lost Income?
Depending on your gross weekly income, you may receive up to 70 percent. The amount will depend on your employment history before the crash. For the first seven days following an accident, income replacement benefits are also not payable. To calculate your benefits, you will need to provide the following if you were working when the accident happened:
- Gross income for the 52 weeks preceding the crash; or
- Taking the gross income in the four weeks before the collision and multiplying it by 13
In addition, if you receive another source of income replacement, they will reduce your benefit amount. For example, if you receive income assistance from your employer or another insurance policy.
How Soon Do Income Replacement Benefits Begin?
Insured persons may receive income replacement benefits seven days after the accident if they qualify. The sooner you file a claim following an accident, the better your chance of receiving compensation to replace the lost income because of your time away from work. It can be challenging to apply for benefits or deal with an insurance company. In light of the complexity of this Insurance Act and its regulations, Fincrew Insurance can assist you with navigating the system.
Is There a Deadline On When I Can Receive An IRB?
You would be eligible for IRB for a minimum of 2 years after an accident as long as you meet the criteria above. The criteria for qualifying for an IRB change after two years and become more challenging to meet. The new measures include:
- Suppose you lose your ability to work because of the accident. In that case, you cannot engage in any job for which you are reasonably qualified due to education, training, or experience.
- If you qualify for an IRB, you will usually be examined by a doctor of your insurance company’s choice.
For more information on all your options and to protect yourself against unfair assessments and refusals to pay your IRB, speak with a Fincrew Insurance agent to help you out.
Documents Needed To Apply For Income Replacement Benefits
Within seven days of the accident, notify your insurer of your injuries. If you wish to receive income replacement benefits, you must submit your initial application 30 days after the accident. You must also submit the following forms:
- Your boss must provide a copy of the Employer’s Confirmation Form (OCF-2) unless you are self-employed. To complete this form, you will need to provide information about your salary, weekly income, tips, and any other compensation you receive.
- To add, Disability Certificate (OCF-3), you will need to complete an OCF-3 detailing your inability to work due to your accident.