What Insurers Need to Know About Foreign Income and IRBs

An occasional question in accident benefit claims is whether foreign income can create an Income Replacement Benefit (“IRB”).

The recent Licence Appeal Tribunal (LAT) decision Azarcon v Wawanesa Mutual Insurance Company (ONLAT 24-014100/AABS) provides clarification.

In this decision, the Claimant was earning Philippine pesos performing online writing services for a Singapore-based company while in Canada under a visitor’s visa at the time of the accident.

The Respondent asserted that, among other issues, the Claimant’s work was “unauthorized” and “irregular” and, as such, the Claimant should not be considered employed or self-employed for Statutory Accident Benefits Schedule (“SABS”) purposes.

The Adjudicator disagreed stating that “s. 4(5) and s. 4(6) of the [SABS] both indicate that income tax legislation of ‘another jurisdiction’ outside Canada may be taken into account in calculating the quantum of an IRB. In my view, the [SABS] contemplates that income may be from another jurisdiction.”

In other words, the Adjudicator confirmed that the SABS allows for income earned outside Canada to be considered when assessing IRB entitlement.

Read the full decision here: Azarcon v Wawanesa Mutual Insurance Company (ONLAT 24-014100/AABS)