How do the CERB & CRB Impact the Calculation of IRBs?

How do the Canada Emergency Response Benefit (“CERB”) and Canada Recovery Benefit (“CRB”) impact the calculation of income replacement benefits (“IRBs”)?

a) Are CERB and CRB received before an accident considered pre-accident income?
b) Are CERB and CRB received after an accident deductible from IRBs?
c) How do CERB and CRB influence entitlement to IRBs, if at all?

These questions have become increasingly common and relevant for accidents occurring in 2020 and 2021.

In order to attempt to answer them, we need to understand that the CERB is included in the Employment Insurance Act (Canada), whereas, the CRB is not included in the Employment Insurance Act (Canada).  This distinction allows us to evaluate the relevant wording in the Statutory Accident Benefits Schedule (“SABS”).

Specifically, per Section 4(1) of the SABS, the determination of gross income for IRB purposes shall include “any benefits received under the Employment Insurance Act (Canada).”

Section 47 of the SABS states that the insurer may deduct temporary benefits from the amount payable to an insured person as an IRB, other than, benefits under the Employment Insurance Act (Canada).

Section 5(1) of the SABS states that a person may be paid IRBs if they were “employed for at least 26 weeks during the 52 weeks before the accident or was receiving benefits under the Employment Insurance Act (Canada) at the time of the accident.”

Therefore, as the CERB is included in the Employment Insurance Act (Canada), it appears that:

a) CERB received before an accident should be considered pre-accident income;
b) CERB received after an accident should not be deductible from IRBs; and
c) A claimant solely receiving CERB at the time of an accident should be entitled to receive IRBs.

However, as the CRB is not included in the Employment Insurance Act (Canada), it appears that:

a) CRB received before an accident should not be considered pre-accident income;
b) CRB received after an accident should not be deductible from IRBs; and
c) A claimant solely receiving CRB at the time of an accident may not be entitled to receive IRBs.

In our experience, the above have become the generally accepted considerations for the CERB and CRB by insurers for IRB purposes.  Given this, we question whether the CRB being received by a claimant at the time of an accident establishes entitlement to IRBs.

Our team would be happy to discuss this or any previous updates with you further.  Please call 519.673.3141 at your convenience.