The claimant was earning the annual income of $150,000.00 during the last fiscal year before the subject motor vehicle accident.
$150,000.00 (gross employment income –> a self-employed person may designate his gross employment income from the last fiscal year of the business that ended before the accident as his “gross annual employment income.”)
– $50,000 (loss from self-employment has to be subtracted –> the loss could come from hiring a worker to replace the claimant’s active participation in the business.)
= $100,000.00
Multiply by 70% equals $70,000.00 (if the claimant has earned any income after the accident, that amount can be deducted from $70K.)
This amount is then divided by 52 weeks to come to a weekly income replacement benefit of $1,346.15. The claimant shall be entitled up to $400.00 per week unless his optional benefits were purchased.
Amount of weekly income replacement benefit
7. (1) The weekly amount of an income replacement benefit payable to an insured person who becomes entitled to the benefit before his or her 65th birthday is the lesser of “A” and “B” where,
“A” is the weekly base amount determined under subsection (2) less the total of all other income replacement assistance, if any, for the particular week the benefit is payable, and
“B” is $400 or, if an optional income replacement benefit referred to in section 28 has been purchased and applies to the person, the amount fixed by the optional benefit. O. Reg. 34/10, s. 7 (1).
(2) For the purposes of subsection (1), the weekly base amount in respect of an insured person is determined as follows:
1. Determine whichever of the following amounts is applicable:
i. 70 per cent of the amount, if any, by which the sum of the insured person’s gross weekly employment income and weekly income from self-employment exceeds the amount of the insured person’s weekly loss from self-employment, if the weekly income replacement benefit is for one of the first 104 weeks of disability, or
ii. the greater of the amount determined for the purposes of subparagraph i and $185, if the weekly income replacement benefit is for a week for which the person is entitled to receive an income replacement benefit after the first 104 weeks of disability.
2. To the amount determined under paragraph 1, add 70 per cent of the amount of the insured person’s weekly loss from self-employment that he or she incurs as a result of the accident. O. Reg. 34/10, s. 7 (2).
(3) The insurer may deduct from the amount of an income replacement benefit payable to an insured person,
(a) 70 per cent of any gross employment income received by the insured person as a result of being employed after the accident and during the period in which he or she is eligible to receive an income replacement benefit; and
(b) 70 per cent of any income from self-employment earned by the insured person after the accident and during the period in which he or she is eligible to receive an income replacement benefit. O. Reg. 34/10, s. 7 (3).
