Injured in a Car Accident and Unable to Work?
Most people that have auto insurance do not know this fact: their auto insurance contains coverage to replace a portion of their income if they are unable to work as a result of a motor vehicle accident. The coverage comes in the form of Income Replacement Benefits (IRB). That is the good news, the bad news is that the IRB tops out at $400 per week, regardless of how much your job pays you.
The IRB is payable for as long as you are unable to engage in your own job. However, to continue to qualify for the IRB more than two years after the accident, you must be unable to engage in “any occupation” for which you are reasonably suited having regard to your education, training and experience. This post two-year test of disability is difficult to meet but for those who are disabled from working, the IRB is a valuable source of income benefits especially if they do not have Long Term Disability Coverage (LTD). The IRB is not taxable and it is payable for as long as you are disabled from working.
Although the standard IRB coverage tops out at $400 per week, everyone can increase this coverage from $400 per week to $600, $800 or even $1,000 per week by purchasing Optional Benefits coverage. For just pennies per day, you can double your IRB coverage. It is a very small price to pay for peace of mind.
Who should purchase the Optional IRB coverage? That’s easy – anyone who does not have LTD coverage. Surprisingly, we come across many clients who are seriously injured in an automobile accident and they do not have any type of LTD coverage through their employer or otherwise. For most clients, $400 per week does not even begin to cover their monthly expenses. These are the people that would benefit greatly from increasing their IRB coverage.
The vast majority of drivers have the basic IRB coverage of $400 per week. You should contact your insurer or insurance broker if you have questions about increasing your IRB coverage. The increase in IRB payable to you could make all the difference in the world should you be unable to work because of an automobile accident.
If you have any questions about receiving support after suffering a severe injury in a car accident, contact Oatley Vigmond for a free consultation.
Contributors
When Rob Durante was called to the bar in 1997, he had been articling for a year with a law firm that specialized in defending insurance companies in personal injury cases. “I developed a sense of wanting to right injustices,” he recalls. “I didn’t want to work for the insurance companies… For me, it’s all about achieving justice for clients, righting wrongs and arranging fair compensation.” Rob joined Oatley Vigmond that same year and has been advocating for seriously injured clients and their families ever since.