The TAC can pay income benefits to injured accident victims. Income support can continue for three years after an accident.
Loss of Earnings (LOE)
An “earner” before the accident will be eligible to income benefits if they cannot work on account of their injuries.
Loss of earnings (LOE) benefits are paid in the first 18 months and are calculated at 80% of pre-accident earnings less tax. The maximum payable for LOE is $1,430.00 per week. LOE benefits can continue for 18 months from the date of the accident.
LOE benefits are not paid during the first 5 working days off work.
A claimant who cannot return to full time employment but can work part time may be entitled to receive a partial LOE payment.
Loss of Earning Capacity (LOEC)
At the 18 month anniversary of the accident income benefits remain payable if a claimant remains incapacitated. The nature of the entitlement alters and in the second 18 months the entitlement is to loss of earning capacity (LOEC) benefits.
LOEC benefits are different to LOE benefits. The maximum payable for LOEC is $ 1,230.00 per week. These benefits can be paid for a further 18 months and many accident victims will receive income support for a total of 3 years.
In some instances, accident victims receive income benefits beyond the three years. A claimant whose permanent impairment is determined at 50% or more, is entitled to receive LOEC benefits until retirement age. But this entitlement is subject to some conditions.