Self-Employed Income Replacement Benefits
Everyone at Azimi Law wishes to extend their thanks to those who watched and participated in our videos on Facebook and Instagram. We would like to take this opportunity to answer two important questions that were raised.
The first question is: “I am a self-employed individual and was injured in a MVA and am unable to return to work. My insurance company told me that I am eligible for income replacement benefits. If this true?” Yes, it is true. Individuals are eligible for up to $400 per week in income replacement benefits (or IRBs). For employed individuals, an OCF-2 (“Employer’s Confirmation Form”) is completed by their employer and the insurance company uses the information in that document to calculate the amount of the weekly benefit. If self-employed, the individual can either provide their own estimate of their self-employment income or hire a third party to do so.
The third party who is asked to prepare such an estimate is usually an accountant. Section 7(4) of the Statutory Accident Benefits Schedule, a regulation made under the Insurance Act, provides that the insured may be eligible to have the costs, of asking an accountant to prepare an estimate, covered by their insurance company. However, for the expense to be eligible to be covered, the accountant must be a member of a designated body under the Public Accounting Act, 2004 and the expense must be reasonable and necessary.
The second question is: “When will I receive my first payment?” For self-employed individuals, the process takes longer. Factors that make the process longer: the individual getting an accountant report; the insurance company getting theirs; the insurance company reviewing the case; and settling any dispute. It could take 1-2 months or longer, depending on the complexity of the case. For self-employed individuals, the benefit is usually paid in one lump-sum payment.