Often injuries sustained in an automobile accident will prevent a person from working, or from working at their full capacity. In these situations there will be a loss of income due to the accident. You are entitled to claim that loss of income from the person at fault for the accident. With respect to a claim for loss of income, you should know the following:
- The 'meeting the threshold' principle that applies to non-pecuniary general damages does not apply to a loss-of-income claim.
- The $30,000 deductible in cases valued under $100,000 for non-pecuniary general damages does not apply to a loss of income claim.
- A person cannot receive any loss of income for the first seven days after the collision.
- A person can only receive 80% of the person's net (after-tax) loss of income for the period of time before trial (less any accident benefits which are received).
For 'future lost income' which means the income to be lost in the future, after trial, a person can receive 100% of the gross (before tax) loss of income. Most cases settle out of court without a trial and this provision in the Insurance Act does not mean that your case is necessarily going to go to trial. A way to understand this provision of the Insurance Act is to consider that an injured person can only receive 80% of net (after-tax) loss of income before trial or the date of settlement and 100% of gross loss of income after trial or the date of settlement.
- INTRODUCTION
- WHAT TYPES OF AWARD CAN WE SUE FOR?
- THRESHOLDS AND DEDUCTIBLES
- LOSS OF INCOME
- TIMEFRAME FOR BEGINNING LEGAL ACTION
- THE COURT PROCESS AND SETTLEMENT
