An Income Replacement Benefit is a type of post-accident compensation provided to motor vehicle accident victims in Ontario by the Insurers as per O. Reg. 34/10 Statutory Accident Benefits Schedule. In order to be eligible for this benefit the claimant should be employed/self-employed/receiving Employment Insurance (EI) benefits at the time of the accident or employed for at least 26 weeks out of the 52 weeks prior to the accident. Weekly IRB entitlement amount is generally calculated by multiplying pre-accident weekly income by 70% and is currently capped at $400 per week unless the client has an upgraded policy.
Actual IRB payable amounts often differ from the calculated entitlement as they also depend on the claimant’s post-accident income or loss. In some cases, calculations of IRBs are straightforward and are handled directly by the insurer. However, in many other cases, calculations can get quite complex and require an accountant’s involvement. Insurers often prefer to hire accountants on their own when required, however, this approach potentially introduces inherent unfavorable to the claimant bias in calculations.
According to section 7(4) of O. Reg. 34/10 claimants are able to retain an independent accountant of their choice to calculate the IRB entitlement and payable amounts. This section also requires insurers to cover the cost of such reports to a specified amount, which allows us to provide our IRB quantification services at no cost to claimants.
Economic Loss (EL) Report for Tort Claimants
An Economic Loss Report identifies the past and future income loss that a self- employed or employed claimant has incurred as a result of the accident. The report is usually completed for claimants that have not been able to return back to work or have returned back to work but suffered financial losses but incurred economic losses due to impact of injuries sustained in the accident. Extensive research and statistical analysis are often used to provide support for loss quantifications. We incorporate financial documents, vocational reports and rehabilitation reports to determine past and estimate future economic losses.
Future Care Cost (FCC) Report
A Future Care Cost Report provides a systematized and concise plan for future care needs and the associated costs that the claimant who is suffering from chronic pain and/or catastrophic injuries may incur. We conduct research, analyze supporting documentation and evaluate prior assessments that have been completed by experts and doctors in order to get the accurate evaluation of the claimant's future care costs. Future care costs can include physiotherapy, attendant care, medication, housekeeping, caregiving, occupational therapy, etc.
Critique Letter to Dispute IRB Accountant's Report and/or Request from Other Parties
In many cases, insurance companies hire vendors of their choice to complete IRB reports for claimants. If necessary, S&T Accounting can review, answer and critique such reports and additional information request letters prepared by the insurer or their retained accountants. When retained, we ensure that only relevant and necessary information and documentation as per O. Reg. 34/10 provisions are provided to the insurer to expedite the process.
Present Value (PV) Report
A Present Value Report is prepared to calculate present value of income that the claimant would have potentially earned until the date of retirement and/or present value of various past and potential future benefits owed to the claimant.