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Enhanced Care + Income Replacement

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Enhanced Care + Income Replacement

On May 1, 2021, ICBC introduced a new insurance scheme known as Enhanced Care. All persons injured in an auto accident in BC now have a new, increased benefit plan available to them whether they are at-fault or not at-fault for their injuries.

Here is what you need to know about your Income Replacement benefits.

Income Replacement benefits are available to all BC residents who are working and are injured as a driver, passenger, cyclist, pedestrian or anyone involved in a car accident.

Income Replacement benefits facts:

  1. Income Replacement benefits are an individual Enhanced Care benefit
  2. You do not need to have a vehicle to qualify or purchase Income Replacement Top-Up coverage
  3. The Income Replacement benefit will provide 90% of your net income up to $100,000 of your annual gross income
    1. The maximum amount payable under Income Replacement benefits (without Top-Up) is $1,288 per week
  4. An Income Replacement Top-Up policy is available for higher income earners
    1. Income Replacement Top-Up is available in 10K increments up to an additional $100,000 in coverage
    2. When purchasing Income Replacement Top-Up, you do not need to show proof of income level. You will do this at claim time
  5. Income Replacement benefits are indexed for inflation annually
  6. The maximum amount of Income Replacement benefits payable with Top-Up coverage is $200,000
    1. $100,000 as part of your Enhanced Care Income Replacement benefit
    2. $100,000 with Income Replacement Top-Up coverage if purchased

Do you need to consider Income Replacement Top Up?

Examples:

  • Ed earns $60,000 a year and is hurt in a vehicle accident and cannot work
    • His net income is approximately $48,000 after taxes
    • His income replacement benefit would be approximately $43,200
    • No need to purchase an Income Replacement Top-Up policy
  • Bob earns $150,000 per year and is hurt in a vehicle accident
    • His net income is approximately $120,000 after taxes
    • Bob did not purchase Income Top-Up
    • His Income Replacement benefit would be approximately $72,000
    • However, Bob would only receive the weekly maximum of $1,288 for income replacement
    • Bob should consider getting an Income Replacement Top-Up policy
  • Ali earns $150,000 per year and is struck by a vehicle crossing the street
    • Her net income is approximately $120,000 after taxes
    • Ali did purchase Income Replacement Top-Up coverage
    • Her Income Replacement benefit would be approximately $108,000

These numbers are for illustration purposes only.

Check out ICBC to learn more at: https://enhancedcare.icbc.com/care-and-coverages#income-replacement-benefits

Make sure you are not left with a gap in your coverage as a result of this new change. Call your Allwest ICBC Expert today to learn more about how the Enhanced Care ICBC system and Income Replacement coverage can work best for YOU!

Terms and conditions apply