If you were an earner before the accident, and you are unable to work on account of your injuries, TAC has an obligation to pay benefits for loss of income (“income benefits”). Income benefits are calculated at 80% of your pre-accident income less income tax, up to a maximum of $1,260.00 per week. This entitlement lasts for a period of 18 months from the date of the accident. In this first 18 month period the entitlement is known as Loss of Earnings (LOE) benefits.
TAC does not have to pay LOE benefits for the first 5 working days during which a claimant is unable to return to work. If you are unable to return to full time employment but can work part time you may be entitled to receive a partial LOE payment during the initial 18 month period.
At the 18 month anniversary of the accident, if you are still unable to work, TAC still has a liability to pay income benefits but the nature of the entitlement alters somewhat. In the second 18 month period the entitlement is known as Loss of Earning Capacity (LOEC) benefits. The LOEC benefit is calculated in a different fashion to the LOE benefit. The maximum payable for LOEC is $ 1,070.00 per week. This benefit is paid for a further 18 months thereby providing a total period of 3 years income protection for most accident victims.
Some accident victims, whose level of permanent impairment is determined by TAC at 50% or more, have an entitlement to receive LOEC benefits until retirement age subject to some conditions.