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CERB to be Included in Pre-Accident Income

September 18, 2023

In the recent Licence Appeal Tribunal (LAT) decision, Coto v Intact Insurance (21-006930/AABS), Adjudicator Grant found that the Canada Emergency Response Benefits (CERB) received prior to the accident should be included when calculating the applicant’s income replacement benefits (IRB) payable.

On July 30, 2020, the applicant was involved in a motor vehicle accident.

The applicant submits that Intact failed to include the CERB she received when she was not working due to COVID-19 when calculating her IRB quantum.  The applicant relied on the decision Hordo and Hordo v CAA Insurance Company, 2022 CanLII 84691 in support of her position.  In this decision, the insureds both received the CERB as a result of work stoppage due to COVID-19.  The requirements to qualify for the CERB included earning a minimum of $5,000 (before taxes) in 2019 from employment income, self-employment income or benefits relating to maternity or parental leave.  Adjudicator Grant found the applicant’s situation similar to the Hordo decision.

Intact Insurance argued that the applicant’s gross annual income is based entirely on self-employment and does not include the CERB payments as the CERB does not meet the definition of “income” per Section 4(3) of the Statutory Accident Benefits Schedule.

Adjudicator Grant found that the applicant’s IRB quantum should be calculated based on the 52 weeks before the accident, including the CERB payments received, as it was the income earned when she was unable to work due to COVID-19.

Read the decision in full detail here: Coto v Intact Insurance (21-006930/AABS)

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