Non-Earner Benefits VS Income Replacement Benefits

Non-Earner Benefits VS Income Replacement Benefits
Accident benefits are important, which is why they are mandatory within Ontario; all insurance policies will include them. If you’ve been in a car accident that has left you unable to work or has drastically impacted you in a way that prevents you from returning to your normal life, accident benefits can help you to carry on and receive compensation for your losses.

There are two main types of accident benefits to supplement your income in Canada; they are non-earner benefits (NEB) and income replacement benefits (IRB).

Non-Earner Benefits

Non-earner benefits are generally in place for people who don’t qualify for income-replacement benefits, though they have still suffered a loss. Non-earners who are not entitled to income replacement benefits receive a weekly amount of $185 if you can show that you suffer a complete inability to carry on a normal life as a result of the injuries you sustained in the motor vehicle accident.

You can qualify for non-earner benefits if you’re a full-time student or have graduated in the last year but haven’t secured a position of employment in your field yet. You can also qualify for these benefits if you have sustained injuries that prevent you from working, and if you do not qualify for income replacement benefits.

Non earner benefit is only payable for 2 years, whereas, income replacement benefits can potentially be payable over your lifetime.

Income Replacement Benefits

Income replacement benefits are for people who are currently employed, though are unable to return to work due to injuries from their motor accident. In Ontario, the standard income replacement benefit amount is 70% (up to $400) of your gross income per week unless you purchased optional benefits and paid an additional premium to receive up to $600, $800 or $1000 per week)

Even if you weren’t employed at the time of your accident, you may be entitled to income replacement benefits if you worked 26 weeks out of the 52 weeks before the accident.

In order to qualify your injuries must cause you to suffer a substantial inability to perform the essential tasks of your employment during the first 2 years of disability. After 2 years, the test changes to whether you suffer a complete inability to engage in any employment that you are reasonably suited for by your education, training and experience.

Virk Lawyers Can Help Hamilton Residents with Accident Benefits

After a car accident, you should contact a lawyer as soon as possible, as they can help you to establish and understand what benefits you’re entitled to.

If you’ve been in an accident whether it was your fault or not that has resulted in you not being able to work or being unable to return to normal work life, Virk Lawyers can help.

We are a dedicated team of personal injury lawyers who specialize in car accident claims and accident benefit applications in and around the Hamilton area. We have a great amount of experience helping Hamilton residents with their accident benefits.

We can help explain all of the necessary qualifications and answer any questions you may have about receiving non-earner or income replacement benefits. Contact us today and find out how we can help you.