Bodily Injury & Fatalities

Calculating Your Income Replacement

Income replacement is 90 per cent of your net income.

This amount will be paid to you every two weeks, until:

  • you return to work
  • your income replacement is adjusted for reasons discussed in other parts of this guide
  • you're eligible for a Retirement Income Benefit
  • you're no longer eligible for income replacement

However, there are certain situations in which other amounts you're paid from other programs will be subtracted from your income replacement. For example, if you receive a disability benefit from the Canada Pension Plan because of the accident, your income replacement will be reduced accordingly.

We'll never use an amount higher than the maximum insurable Gross Yearly Employment Income amount when calculating your income replacement. PIPP Benefits provides more information on this year's maximum and other basic PIPP benefits.

Walter is a highly-skilled heavy equipment operator who works overtime regularly. For the last three years, his income has been over $85,000 a year. In August 2011, Walter was hit by a car. He was off work for four months. During that time, he received income replacement based on a yearly income of $83,000, the maximum coverage in 2011.