Every day on average, there are over 600 automobile accidents in Ontario. If you are injured in one and cannot work, your auto policy provides an income replacement benefit to partially replace the income you have lost.
The policy will pay 80% of your net income based on your pre-accident employment earnings. Net income is essentially your take home pay (gross pay less employment insurance premiums, CPP payments and income tax deducted). The maximum payment is $400 per week.
Increasing Your Lost Income Insurance Coverage
For most people, this amount is adequate. However, if your income is above average, you should consider purchasing increased benefit coverage from us. It is important to note that any payments made from other sources (such as your employer or any private disability plan) are deducted from the amount payable.
Here’s How It Works
If you are injured in an automobile accident, you may be eligible to receive a payment every two weeks to partially replace the income you have lost. You may qualify if you suffer physical or psychological injuries within two years of an accident. The first seven days of your disability are not covered by this plan.
Payments will begin within 14 days after the company has received your completed benefits application form and if your disability continues, a payment will follow at least every two weeks.
You may require a certificate from a qualified medical person and the insurance company will pay for this certificate. Also, you are expected to participate in rehabilitation or treatments that are reasonable, and if you refuse, benefits can be reduced by 50%.
There are lesser income benefits available to caregivers (such as full-time homemaker who looks after dependent children) and non-earners (such as a full-time student). If this describes your situation, we can explain the various benefits available.
We urge you to consider your own situation and minimum income needs in the event you became disabled in an automobile accident. Benefit coverage beyond the $400 weekly maximum is available at a reasonable cost. Contact us for more information.