When it comes to calculating Income Replacement Benefits (IRB) for a claimant, we need to look at every financial aspect of the claim, including collateral benefits.
But what, exactly, constitutes a collateral benefit and when is it a factor in calculating the IRB payable?
This post relates to the post-September 2010 legislation. For our blog on the pre-September 2010 legislation, you may find it here.
Under the post-September 2010 legislation, collateral benefits are received by an insured as a result of a prior incident, meaning an incident which occurred prior to the automobile accident.They are deductible from the amount payable for IRBs and Non-Earner benefits (NEB), only if they are being received by the insured and considered temporary when the insured first qualified for the IRB or NEB.