Compensation for loss of income in motor vehicle accident claims is limited to 80% of net income from one week after the accident to the date of a trial. Thereafter, compensation is awarded on the basis of 100% of gross income loss. Any amounts paid as statutory accident benefits for loss of income, as well as any “collateral” benefits payments are deducted from any amount payable for loss of income by the at fault party. Other payments that could be deducted include sick leave, short term disability plans, and long term disability plans. Social assistance payments are not included, and typically these types of payments must be refunded to the agency making the payment upon completion of the case. Similarly, Employment Insurance payments are not included and must be refunded to the Employment Insurance Agency upon completion of the case.
This governs the calculations up to the date of a trial. Compensation for loss of future income is usually discounted to account for investment earnings and “contingencies”. In addition, if statutory accident and other collateral benefits are payable beyond the date of trial, the injured person must assign any interest in these future benefits to the tortfeasor.