Year: 2015

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 […]

Cold, hard cash can be very hard to trace. This makes accounting for cash wages in Income Replacement Benefit (IRB) calculations tricky. There are any number of instances when a person might be paid in cash: tips for waiting tables, housekeeping, contractors, whether employed or self-employed, and often when working for family members. So, how […]

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 […]

The One Factor That Can Change an IRB from Nil to the Policy Limit — And You Likely Don’t Know It’s An Issue You can read the rest of our article, which appeared in the January 2015 issue of WP Magazine, here: WP Special Edition ‘A Closer Look’ Keep your eyes on the April 2015 […]

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