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Loss of Income Benefits

The aftermath of an accident can disrupt an individual’s ability to work, whether temporarily or permanently, impacting their financial stability.

Table of Contents

Overview

The repercussions of a car accident extend beyond physical injuries, often giving rise to the economic strain caused by the loss of income.

Victims may face challenges in meeting everyday expenses, including medical bills and rehabilitation costs, exacerbating the stress associated with recovery. This loss of income is particularly significant for those whose livelihoods depend on their ability to perform physical tasks or maintain a consistent work schedule.

Navigating the complex landscape of insurance claims and legal proceedings becomes not only a pursuit of justice but also a crucial avenue for recovering the financial losses incurred due to the inability to work. The ripple effect of income loss underscores the multifaceted impact of car accidents, emphasizing the need for comprehensive support systems to help individuals rebuild their lives and financial security in the wake of such traumatic events.

Key Points

Benefits are potentially available through EI, your motor vehicle insurance, or other types of insurance

Loss of Income Benefits with motor vehicle insurance

Most motor vehicles in New Brunswick are covered by the Standard Owner’s Automobile Policy. This means that if you are involved in an accident and injured while driving an automobile, a motorcycle, a snowmobile, an ATV, or another type of motor vehicle, or you are a cyclist or pedestrian that was injured by a motor vehicle, you may be entitled to medical and loss of income benefits.

Read more: Section B: Loss of Income Benefits

Loss of Income Benefits for Seasonal Workers

Section B of your motor vehicle insurance policy provides no-fault benefits. These are meant to assist people who have been injured in car accidents. They include coverage for medical and rehabilitation expenses and loss of income.

Insurance companies have interpreted the “employed” condition to exclude seasonal workers from loss of income benefits in the past. Luckily, the courts have the last word on interpretation. Courts have stated that the answer to whether a seasonal employee is “employed” is based on the facts of every situation.

Read more: Loss of Income Benefits for Seasonal Workers

Employment Insurance (EI) Sickness Benefits

Employment Insurance sickness benefits can provide you with up to 15 weeks of financial assistance if you can no longer work for medical reasons.

Typically, you would be eligible for these benefits, following your accident, if your normal weekly earnings have decreased by more than 40% for at least one week and you have accumulated 600 hours of insurable employment in the 52 weeks before you started your claim, or since the start of your last claim.

Read more:

Employment Insurance Sickness Benefits

How does the extension of EI Sickness benefits impact my Personal Injury Claim?

CPP Disability Benefits

The Canada Pension Plan (CPP) disability benefit is a monthly payment you could be receiving from the Government of Canada if you are under 65 years old and you are unable to work because of a mental or physical disability.

Your disability needs to be severe and prolonged for you to qualify for CPP disability benefits. You also need to have made enough contributions into the CPP during your working life. These contributions are usually taken off your paycheck automatically if you’ve worked for an employer in the past.

Read more: Are you Entitled to CPP Disability Benefits?

Undeclared Income and Insurance Claims

If you are unable to work after an accident and have lost income, your lawyer needs to first show that you were making money before the accident. Income tax returns are one of the best ways to prove an earning history, so when they are available, we look at several years of tax returns from before the accident.

People are often nervous to disclose that they have earned income and not declared it to Revenue Canada. It is important to tell your lawyer so that they can advise you on how that will affect the two main claims following a motor vehicle accident and how to handle undeclared income in that context.

Read more: Undeclared Income and Insurance Claims

More posts about insurance benefits

What you need to know about your insurance company – Section B

What are no-fault benefits? In New Brunswick, the Standard Owner’s Automobile Policy is regulated by law. That means that every car insurance policy is basically the same. In the event of a car accident, different parts of your insurance will kick in … Read More

Section B: Medical Expenses

Have you been injured in a motor vehicle accident and do you require medical treatment, but you can’t afford to pay for it on your own? No problem. It’s highly likely that your auto insurance company will cover the entire cost of … Read More

Fidelis insurance lawyers

Don’t let your insurance company take charge of your recovery and take advantage of your vulnerability and lack of legal knowledge. Only lawyers experienced in personal injury claims such as those at Fidelis Law Droit can effectively protect your legal interests and rights. When you choose Fidelis Law Droit, you’re getting an entire team on your side. You can count on us to uphold your interests diligently, firmly, and decisively. If necessary, your lawyers at Fidelis Law Droit will not hesitate or shy away from taking legal action against your insurer to protect your rights. We’ve seen it all, and we won’t back down.