Calculation of Income Replacement Benefits for claimant involved in a motor vehicle accident in August 2020
What is required?
1. Client’s filed income taxes for 2019 and 2020
2. Calculation of IRBs under s. 7(2) of the SABS
3. Post-accident bank deposit
Under s. 7(2) of the SABS, Income Replacement Benefits were calculated as follows: $100K (gross employment income during 52 weeks before the accident) Multiply by 70% = $70K Divided by 52 weeks for weekly IRB, which results in $1,346.15 per week of base income.
Section 7(3)(a) of SABS permits the insurance company to deduct 70 percent of any gross employment income received by the insured person after the accident and during the period in which the insured person is eligible to receive IRBs.
