ICBC’s website says: “If your injuries have prevented you for working after the first seven days (of a motor vehicle accident injury), you may be eligible for the income replacement benefit. This benefit can replace your lost wages up to 90% of your typical net income, based on a maximum amount of $113,000 in annual gross income. If you earn more than this, you have the option of buying additional income top up coverage”.
Pretty clear, right? Wrong! Section 80 (1) of the Insurance (Vehicle) Act clearly only covers a disabled victim up to the applicable maximum amount in section 2 of Schedule 3, which limits ICBC’s total payment for income replacement benefits under s.80 to $740 per week, or $38,480 per year. What happened?
Honestly, it is hard to explain. Different legislation, The Enhanced Accident Benefits Regulation is the source of the confusion. Under s. 2, the maximum income replacement payable by ICBC is determined by multiplying $100,000 by the ratio between a) the sum of the industrial wage average for each of the 12 months before October 1 of the year proceeding (the accident year) and b) the same sum for each of the 12 months before October 1, 2020. Full time wage earners can look to s. 4 to help with the calculations, which for self-employed people, means finding the gross yearly earnings under a comparable trade in “Table 1”, a long list of occupations, or the gross yearly income the applicant actually earned. Section 3 adds to the confusion, as it provides “an income replacement benefit determined under this regulation other than this section” as long as it is not more than “$740 per week”.
None of this confusion is necessary. An applicant is entitled to receive 90% of his or her income, up to a maximum of $740 per week. Period. To translate the above: if you are totally disabled from your job or any job for which you are suitable to do, you are entitled to 90% of your weekly income up to a maximum of $113,000 per year, but not to exceed $740 per week or $38,480 per year, less any other wage replacement benefits you are entitled to under a plan you may have through your work. (So if you are covered for income replacement through your work, ICBC has to pay you nothing).
Is politics at play? The ICBC website does not contain much of the above information. Injury victims who can’t work are going bankrupt. And, accident victims are not getting much value for the premium they pay if they are assuming they are entitled to 90% of their income up to $113,000 per year.
The lesson here is to make sure you purchase, either through your employment or through a private insurer, enough actual income replacement insurance to cover your expenses for the duration of your disability.
Confused about ICBC’s income replacement benefits? DBM Law team with offices in Coquitlam and Vancouver can provide clarity and guide you through your options. Contact us today for expert legal advice to protect your rights and ensure you get the support you deserve.