Post-Accident Losses Capped

In the recent Licence Appeal Tribunal (“LAT”) decision, Adjudicator Paluch ruled that the Applicant’s post-accident losses from self-employment were to cease effective December 31, 2019.  Adjudicator Paluch gives guidance on post-accident losses from self-employment in the decision, Hanna Awadalla and Intact Insurance (20-006345/AABS).

The Applicant was involved in a motor vehicle accident on August 4, 2017 and sought income replacement benefits (“IRBs”) from the Respondent, Intact Insurance.  At the time of the accident, the Applicant was self-employed and working as an Uber driver.  The Applicant attempted to return to work during 2018, however they were ultimately unable to continue working due to the injuries sustained.

The Applicant disagreed with the quantum of the IRBs payable as calculated by the Respondent’s accountant.  Specifically, the Respondent calculated the Applicant’s IRBs during the pre-accident period utilizing the 52 weeks prior to the accident to be $14,875.  The IRB payable was calculated to be $279.00 per week up to December 31, 2019, which considered continuing post-accident self-employment expenses.

Beyond December 31, 2019, the Adjudicator ruled that the Applicant’s weekly IRB would be set at $200.00, solely considering 70% of their pre-accident income earned during the 52 weeks before the accident, and disallowing any continuing post-accident expenses.  This approach is consistent with the decision N.C. and RBC General Insurance Company (16-000282/AABS), which outlined that post-accident losses from self-employment are not payable beyond the end of the calendar year in which the business ceased operating.

The Applicant ceased their self-employment activities as an Uber driver in June 2019, as such, the post-accident losses from self-employment ceased on December 31, 2019.

Read the decision in full detail here: https://www.canlii.org/en/on/onlat/doc/2021/2021canlii93245/2021canlii93245.pdf