The TAC can pay income benefits to accident victims. Income support can continue for three years after an accident.
Loss of Earnings (LOE)
An “earner” will be eligible to income benefits if they cannot work due to their injuries.
Loss of earnings (LOE) benefits are paid in the first 18 months. LOE benefits are calculated at 80% of pre-accident earnings less tax. Currently, the maximum payable for LOE is $1,490.00 per week. Such benefits can continue for 18 months from the date of the accident.
Income support is not paid for the first 5 working days off work.
A partial LOE benefits can be paid to a claimant who cannot return to full time employment but can work part time.
Loss of Earning Capacity (LOEC)
Income benefits are still paid if a claimant remains incapacitated at the 18 month anniversary. However, the nature of the entitlement alters. 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 $ 1,290.00 per week. These benefits can be paid for a further 18 months. Many accident victims will receive income support for a total of 3 years.
Sometimes an accident victim will receive income benefits past 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.