Income Replacement Benefits Under SABS: Eligibility, Calculation, and Common Disputes

Who Qualifies for Income Replacement Benefits

Income replacement benefits (IRBs) are available to accident claimants who were employed at the time of the accident — as an employee or self-employed — and are substantially unable to perform the essential duties of their pre-accident job due to injuries. Students within 26 weeks of commencing employment in their field may also qualify.

The Two-Stage Disability Test

During the first 104 weeks, the test is whether the claimant is substantially unable to perform the essential tasks of their own pre-accident employment. After 104 weeks, the test shifts: whether substantially unable to perform the essential tasks of any employment for which reasonably qualified — a stricter standard mirroring the LTD “any occupation” definition.

Calculating Your IRB

The IRB equals 70% of average gross weekly employment income from all sources during the 52 weeks prior to the accident, subject to the applicable weekly maximum ($400 standard; up to $1,000 with optional coverage). Part-time, seasonal, and recently hired workers have specialized calculation methods under the SABS.

Common IRB Dispute Scenarios

Insurers terminate IRBs prematurely in recognizable patterns: using the 104-week definition change without adequate reassessment; file-review medical opinions without examining the claimant; disputes over pre-accident earnings; and incorrect calculation methods for self-employed individuals. Each is challengeable at FSRA or through the courts.