Summary: The New SABS (O. Reg. 34/10) have introduced changes which will require continued efforts on the part of an adjuster to confirm what benefits may be considered payments for loss of income, and subsequently, what will be deductible as other income replacement assistance.
Payments for loss of income which are deductible from an IRB are outlined in paragraph 3(7)(d) of the New SABS. This paragraph is a change from the Old SABS subsection 2(9), apparently codifying previous FSCO arbitrations decisions, such as Sharma-Singh and Co-operators General (A07-000588).
For details on other income replacement assistance, we refer you to our ADS Blog.
So what changes did the New SABS bring?
Insurance Contract – The first change deals with contracts under which periodic payments of insurance are deemed to be payments for loss of income. Specifically, payments are now deemed to be payments for loss of income “irrespective of whether the contract for the insurance provides”: