TAC has an obligation to pay income benefits to an injured accident victim. Income support typically continues for up to three years. after the accident.
Loss of Earnings (LOE)
If you were an earner before the accident and you are unable to work on account of your injuries you are eligible to income benefits. In the first 18 months the entitlement is known as Loss of Earnings (LOE) benefits. LOE benefits are calculated at 80% of your pre-accident earnings less income tax. LOE benefits can be paid up to a maximum of $1,390.00 per week. This entitlement lasts for a period of 18 months from the date of the accident.
TAC does not have to pay LOE benefits for the first 5 working days that 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.
Loss of Earning Capacity (LOEC)
At the 18 month anniversary of the accident 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. LOEC benefits are calculated differently to LOE benefits. The maximum payable for LOEC is $ 1,190.00 per week. This benefit is paid for a further 18 months. Many accident victims will receive income support for a total period of 3 years.
Some accident victims will receive income benefits beyond the three years. Those whose permanent impairment is determined at 50% or more, are entitled to receive LOEC benefits until retirement age. This entitlement is subject to some conditions.