Life is full of surprises and unforeseen occurrences, some of which can severely impact our ability to live our lives. When a person receives a severe injury in an accident, they may no longer be able to work to the same extent as before.
In some instances, such as car accidents or accidents at work where another party may have responsibility for injuries, the victim may be able to gain compensation for lost income during the rehabilitation phase or loss of future earnings where their ability to work in the future has been impaired.
To gain compensation, the victim must provide the details of their earning capacity and prove that this potential has been compromised through injury. Experienced personal injury lawyers are available to help them through this process.
Gaining compensation for injuries
If you’ve been injured in an accident that wasn’t your fault, you may be liable to gain compensation for any losses.
Where the accident and injuries were caused by negligence or someone else's fault, financial ‘damages’ may be claimed through a personal injury claim against the party at fault. Damages are usually split into one of two categories:
- Pecuniary damages: These damages are quantifiable and can include medical bills, past income loss, and future earning potential.
- Non-pecuniary damages: These damages are not financially quantifiable but include compensation for physical and mental pain and the negative impact on your quality of life.
If you were involved in a motor accident, your car insurance will offer access to accident benefits in line with Ontario’s State Accident Benefits Schedule (SABS). Among these benefits available to victims is compensation for lost income. If a third party was at fault, you can still investigate whether you can seek further damages via a personal injury lawsuit.
How can you gain benefits?
Car accidents are among the most common sources of serious injuries nationwide, with thousands injured yearly. Often, they cannot work and seek income replacement from their insurance providers to cover loss of earnings.
Personal injury lawyers often help with these cases to gain the maximum possible payouts. You must meet one of the following thresholds to gain income replacement benefits:
- Employed or self-employed at the time of your accident
- Worked for 26 or more weeks during the year preceding your accident
- Receiving Employment Insurance (EI) at the time of your accident
- At least 16 years old AND excused from attending school if you were unemployed at the time of the accident.
In addition, you will need to prove that you were unable to work or work to the same level as before the accident because of the physical injuries or emotional impact of the accident.
What level of compensation can you expect?
Once your eligibility for income replacement benefits has been confirmed, your insurance provider will begin to determine the level of compensation you can expect.
Recipients can receive up to 70% of their weekly gross income up to a maximum of $400 per week. Benefits can last up to 104 weeks (almost two years) and are paid to recipients every fortnight. Reduced benefits may be received after this initial period if your ability to work is still impaired.
Loss of future earnings in personal injury cases
When involved in a car accident, you can only claim for loss of earnings sustained due to your injuries or mental damage while recovering. In personal injury cases, you may be able to claim damages for all lost income, including future earnings, beginning from the date of the accident.
It is essential to employ a personal injury lawyer in these cases, as calculating lost future earnings in a personal injury case is controversial and a point of contention between the contending parties. Expert analysis is required of the victim’s injuries, their career prospects, and the impact of the injuries on their ability to receive pay raises, promotions, or move into better jobs.
The victim’s age also feeds into the calculation, with a 25-year-old graduate likely to receive far more compensation for future lost income than someone in their sixties approaching retirement.
You will need to provide your lawyer with the following to help them determine the appropriate level of compensation for you:
- Pay slips, tax records, and bank statements for a certain period before your accident
- Correspondence from your employer confirming the accident has contributed to lost earning opportunities
- Medical proof of disability, physical impairment, or the long-term mental impact of the accident
- Doctors’ notes and medical records
Barbeau v Ruchetta (June 2012)
Ontario personal injury lawyers Boland Romaine LLP represented Nancy in a case where a truck driver struck her as she walked a crosswalk. She sustained a fractured left tibia and fibula that required emergency surgery. Three additional surgeries, including a fusion, were needed to allow her to return to her administrative job.
Nancy continued to battle pain throughout her return to work but was reluctant to give up work as she loved her job. The defendant’s insurer refused to acknowledge that she would have lost income, so the case went to court after calling on Nancy’s orthopedic surgeon and family physician to testify to the ongoing impact of her injuries on her ability to perform her professional duties.
The jury-driven verdict awarded Nancy damages that allowed her to continue working but on reduced hours until her retirement.
Determine what compensation you are due
Being involved in an accident is a traumatic experience, mainly where you are not at fault. If you’re incapacitated due to physical injuries or mental stress due to a car accident or personal injury, there’s no reason to miss out on earnings as you recover. Indeed, in cases where your future earning potential has been impaired, you can receive damages to cover the potential loss of future income.
If you’ve been involved in an accident, contact a personal injury lawyer to find out what compensation you are due to cover your loss of earnings.