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Reconsideration Excludes CERB from Pre-Accident Income

January 29, 2024

In the recent Licence Appeal Tribunal (LAT) decision, Coto v Intact Insurance (21-006930/AABS – R), Adjudicator Grant accepted the applicant’s request for reconsideration.

In the initial decision, adjudicator Grant considered that the Canada Emergency Response Benefit (CERB) received by the applicant should be considered as pre-accident income when calculating their income replacement benefits (IRB) payable.

The respondent submitted that adjudicator Grant reconsider his prior decision and exclude CERB from the applicant’s pre-accident income.

The respondent argued that the Statutory Accident Benefits Schedule contains a single definition of “gross employment income” under s. 4(1), which must be interpreted consistently under both sections 7(2) and 7(3).

Adjudicator Grant accepted the applicant’s request for reconsideration stating, “On reconsideration, I find that an error of law was made in finding that the CERB payments would be considered “gross employment income” under s. 7(2).  Specifically, the CERB payments should not be added to the calculation of IRB quantum, as was determined at first instance…in consideration of the CERB mandate set out by the Government of Canada, I find the correct interpretation is that CERB is not to be considered income that is included in the calculation of IRB quantum.

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

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