Car Accidents in Ontario: Financial Relief When You Can’t Work

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A car accident in Ontario can leave you with more than just physical injuries. The inability to work due to your injuries can create a significant financial strain. Fortunately, several avenues for financial relief exist. In this article, we will explore various sources of income available to car accident victims in Ontario who cannot work.

  1. Accident Benefits Claims (SABS):

Ontario’s Statutory Accident Benefits Schedule (SABS) provides income replacement benefits (IRBs) to individuals unable to work due to accident-related injuries. Typically, these benefits cover up to 70% of your gross income, with a maximum of $400 per week. However, this amount may not fully compensate for your lost wages.

Example:* If you earned $800 per week before the accident, you could receive up to $400 per week in IRBs.

  1. Lawsuit Against At-Fault Driver:

If another driver caused your accident, you could sue them for damages, including lost income. This option can potentially provide more substantial compensation than IRBs, but the process can be lengthy and complex.

Example:* If your injuries prevent you from working for a year, and you earned $50,000 annually, you could sue the at-fault driver for your lost wages.

  1. Ontario Works (OW):

Ontario Works provides financial assistance to individuals with low income and limited assets. However, it is not an ideal option for car accident victims because it requires active job searching and participation in employment programs, which may not be feasible for those with severe injuries.

Example:* If you apply for Ontario Works after a car accident, you may be expected to attend job interviews or workshops, even if your injuries prevent you from working.

  1. Ontario Disability Support Program (ODSP):

ODSP offers income and employment supports to individuals with substantial disabilities. If your accident-related injuries are severe and long-lasting, you may be eligible for ODSP benefits.

Example:* If you have a spinal cord injury from the accident that prevents you from working, you may qualify for ODSP.

  1. Canada Pension Plan Disability (CPP-D):

CPP-D provides monthly payments to individuals who have contributed to the CPP and become disabled. The amount you receive depends on your contributions and the severity of your disability.

Example:* If you have a long history of contributing to the CPP and your injuries are severe, you may receive substantial CPP-D benefits.

  1. Short-Term and Long-Term Disability (STD & LTD):

If you have disability insurance through your employer or a private policy, you may be eligible for STD benefits during your initial recovery and LTD benefits if your disability is long-term. The terms and benefits will vary depending on your specific policy.

Example: If your employer offers STD, you may receive a portion of your salary (e.g., 60%) for a specified period, such as six months. If your disability continues, you may then transition to LTD benefits.

  1. Bank Loans and Lines of Credit:

Securing a loan or line of credit may be an option if you have good credit and assets to use as collateral. However, this is a short-term solution, and accruing debt can add stress during your recovery.

Example:* You could use a home equity line of credit to cover living expenses while you are unable to work.

  1. Borrowing from Friends and Family:

While this option can provide immediate relief, it can also strain relationships. It’s essential to establish clear repayment terms if you choose this route.

Example:* A family member might lend you money to help with your mortgage payments while you recover.

Important Considerations:

  • Each option has eligibility requirements and limitations. Consult a personal injury lawyer or financial advisor to determine the best sources of income for your situation.
  • Start the application process for government benefits as soon as possible, as there may be waiting periods.
  • Keep detailed records of your income loss, medical expenses, and other accident-related costs.

Conclusion:

Experiencing a car accident in Ontario and being unable to work can be daunting. However, understanding the available sources of income can help you navigate this challenging time. By exploring your options and seeking professional guidance, you can secure the financial support you need to focus on your recovery.

Have questions about the article above or involved in an accident?
Click here to ask a question for free or report an accident here.