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There are a number of ways that someone might earn interest income, be it on an investment, or as a result of late payment from a client. As with any income, interest must be reported for taxes. But, whether interest is included in the calculation of an income replacement benefit (IRB), is entirely dependent on […]

There are many factors that can affect income for an insured. Employment expenses are one piece of this puzzle. If an employee, in the course of employment, is required to pay certain expenses as a means to earn income, they could have employment expenses. These expenses may be reported on a person’s income tax return, […]

Defining a claimant’s employment status is integral in the calculation and determination of an Income Replacement Benefit (“IRB”). Whether an individual is employed, self-employed, or unemployed at the time of the motor vehicle accident is used to determine the period upon which the insured’s income is calculated as well as the actual income – both […]

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 […]

Summary: It appears the driving consideration on whether an amount is deductible is whether or not the payment is for loss of income, specifically an indemnity payment, and not how regularly payments are received by the insured, whether or not they cover the entire period of disability, or the length of the waiting period. These […]

Summary: The Insured received collateral benefits which were deemed to be of a non-indemnity nature, and as such, not payments for loss of income under an income continuation benefit plan. On this basis, they are not deductible from an Income Replacement Benefit (IRB). This decision relates to accidents which occurred from November 1996 to September […]

Summary: A new term for what was previously called collateral payments for loss of income under the prior legislation, OIRA appears to bring together s.7(1) and (2) of the Old SABS. The only significant change appears to be the addition of “gross”…but does that have an impact? An Introduction: The New SABS (O. Reg. 34/10) introduces […]

Summary: Unfortunately, this one isn’t so clear cut. Under the majority of cases, dividends are not income for IRB purposes. However, they may be a sign of other income sources. So, why do we care about dividends when calculating Income Replacement Benefits (IRB)? Let’s look first at when an individual might receive dividends. When would […]

Summary: If received, CPP disability benefits are deductible as other income replacement assistance in calculating the IRB payable. But it is important to understand the interplay with other benefits, and other components of CPP disability benefits that shouldn’t be considered. Background: This discussion must start with qualifying for the Canada Pension Plan (CPP) disability benefits. […]

Summary: Unlike CPP disability benefits, CPP child benefits are not deductible as payments for loss of income from the IRB. What is the CPP Child Benefit, and when is it paid? Let’s first look at what a qualifying child is: The natural child of the CPP contributor A child “adopted legally” or “in fact” by […]