Injured in a Car Accident? What You Need to Know About Collateral Benefits
If you have been injured in a car accident, you may receive help from third parties like extended health benefits through your workplace or statutory accident benefits (SABS). Any money or benefit you receive from these sources is known as collateral benefit.
If you sue the at-fault driver, knowing that these benefits may be deducted from your final compensation is important. This is because Ontario’s compensation system intends to provide you with the total amount of your losses and not a nickel more.
The general rule is that past and present benefits will be deductible, and future benefits must be held in trust or assigned to the at-fault party.
Past and Current Benefits
Not all benefits are treated equally; some are deductible, and others are not.
Deductible
- Income Replacement Benefits
- Long-Term Disability
- Canada Pension Plan-Disability
- Ontario Works
- Medical and Rehabilitation Benefits
- Extended Health Care Benefits
*You may be required to pay ODSP or EI back to the government.
Future Benefits
Future benefits are a bit trickier. To help illustrate, if you are awarded $50,000 at trial for future care costs and are to receive $10,000 from SABS for future physiotherapy sessions. The at-fault party must be repaid the $10,000 from SABS. This can be handled in one of two ways.
- Trust: As you get the money from SABS for your treatment session, you “hold it in trust” and pay it to the defendant until the $10,000 is paid.
- Assignment: The money gets paid from SABS directly to the at-fault party (the defendant) as you get treatment until the $10,000 is paid.
Remember, this is a simplified and general explanation; specific legal details and exceptions may apply. If you have been injured in a car accident, it is important to talk to a lawyer to understand how collateral benefits might impact your case and ensure that you receive fair and full compensation.
If you need support, contact Legate Injury Lawyers
