Long-Term Disability

Income Replacement Benefits vs Non-Earner Benefit

If you are injured in a car accident your accident benefits insurer will provide you with a couple of different options to help pay for your  day-to-day living. The two main options for injured car accident victims are the Income Replacement Benefit (IRB) and the Non-Earner Benefit (NEB). We will explain the differences between the two types of benefits.

Income Replacement Benefit

After a motor vehicle accident, you may be entitled to receive an Income Replacement Benefit (IRB) from your insurance company. If you suffered injuries that prevent you from returning to work, you may be entitled for such benefit. There are certain conditions you need to comply with prior to receiving this benefit.

The SABS (Statutory Accident Benefits Schedule) sates that you are eligible for this benefit if you:

  • were not employed but at least 16 years old and excused from attending school at the time of the accident;
  • employed at the time of the accident, but are unable to go back to work because of your injuries;
  • you were unemployed at the time of the accident, but you worked at least 26 weeks out of the 52 weeks (1 year) prior to the accident;
  • were receiving Employment Insurance at the time of the accident;

It is important to note that you will not receive IRB for the first week after the accident. The insurance company will only pay an IRB within 104 weeks of an accident if you suffer a substantial inability to perform the essential duties of your job. After 104 weeks, the insurance company will continue to pay you an income replacement benefit if you suffer a complete inability to engage in any employment for which he or she is reasonably suited by education, training, or experience.

The Income Replacement Benefit is 70% of your gross income up to a maximum of $400.00 per week. You could also pay for optional benefits and receive $600.00, $800.00 or $1000.00 per week.

Non-Earner Benefits: Financial Support After a Car Accident

If you do not qualify for the IRB you may still receive a Non-Earner Benefit. To qualify for this benefit:

  • you must suffer a complete inability to carry on a normal life, but not qualify for the Income Replacement Benefit; or
  • you must suffer a complete inability to carry on a normal life and
    • You were a full time student at the secondary or post-secondary level, or
    • if you had finished your studies less than a year before the accident but was neither employed or self employed in a capacity that reflected his or her education.

The amount of the Non-Earner Benefit is $185 per week during the time you are eligible for this benefit up to 104 weeks after the accident. There is a waiting period of 4 weeks.

It is important to know that for both benefits, you will be required to prove that you suffer a substantial or complete inability to work or to carry on a normal life. You will be required to attend medical examinations set up by your insurance company and to provide updated medical records.