The income replacement benefit in Ontario is optional for many policies issued or renewed after July 1, 2026, rather than automatically included in every policy. Whether it is available depends on the applicable coverage and facts. This guide explains the benefit, forms, policy review and claim questions.
Key takeaways: Check the policy and renewal documents, ask about the OCF-10 election, preserve employment records and confirm whether income-replacement coverage was selected.
What the income replacement benefit is
The IRB is a weekly benefit under the Statutory Accident Benefits Schedule (SABS), Ontario Regulation 34/10. It is designed to replace part of the income an injured person loses because they cannot work as a result of a car accident. It is paid by the injured person’s auto insurer regardless of fault.
What changed on July 1, 2026
For policies entered into or renewed on or after July 1, 2026, income replacement, non-earner, caregiver, other-expense, death and funeral benefits are optional under O. Reg. 34/10, s. 2(1.0.1). On renewal, existing benefits continue unless the named insured agrees in writing to decline or change them under s. 2(1.0.2). See https://www.ontario.ca/laws/regulation/100034.
On renewal, existing benefits continue unless the named insured agrees in writing to decline or change them. Check the policy documents and renewal materials. See O. Reg. 34/10, s. 2(1.0.2): https://www.ontario.ca/laws/regulation/100034.
How much is the IRB?
The IRB is calculated under the SABS. Where the benefit was purchased, it is generally 70% of gross weekly income under s. 7(2), is not payable for the first week under s. 6(2)(a), and after 104 weeks requires complete inability to engage in any suitable employment under s. 6(2)(b). See https://www.ontario.ca/laws/regulation/100034.
Who may qualify
The income test
In general terms, the IRB is intended for people who were employed or self-employed at the time of the accident, or who meet other qualifying work-history criteria set out in the SABS. Proof of income is usually required, such as pay stubs, tax returns or business records.
The disability test
To receive the IRB, an injured person must also meet a disability test. The test looks at how the injuries affect the person’s ability to work, and it can become stricter the longer benefits continue. The exact wording of the test and the time periods are set out in the SABS and should be confirmed for each claim, because many disputes about the IRB turn on this test.
Pedestrians, cyclists and people without a car
Before the reforms, a pedestrian or cyclist struck by a car could often claim IRB through their own policy, a household member’s policy, or the policy of the vehicle that struck them. That remains possible, but because IRB is now optional, whether income replacement is available depends on what coverage the responding policy includes. Priority rules determine which policy responds first.
Forms you may need
• OCF-1 Application for Accident Benefits: the main application form.
• OCF-2 Employer’s Confirmation Form: completed by your employer to confirm your employment and earnings.
• OCF-3 Disability Certificate: completed by a health practitioner describing how your injuries affect your ability to work.
• OCF-10 Election of Income Replacement, Non-Earner or Caregiver Benefit: in some cases, a claimant who qualifies for more than one of these benefits must choose one.
Missing or incomplete forms are a common cause of delay. Keep copies of everything you submit and note the dates.
How the IRB interacts with other income sources
The IRB may be reduced by certain other income replacement benefits, such as some employment insurance or disability benefits, depending on the policy and the SABS rules. Since July 1, 2026, auto insurance generally pays first for medical and rehabilitation expenses, but income replacement coordination with workplace disability plans follows its own rules. Ask your insurer how other benefits will be treated.
Income loss may also be claimed in a lawsuit against an at-fault driver. In motor vehicle cases, the Insurance Act limits pre-trial income loss recoverable in a lawsuit, and accident benefits received may be deducted. Coordinating the IRB and a tort claim matters.
What to do now
• Check your auto policy, and any household member’s policy, for income replacement coverage.
• If you are renewing a policy, consider whether to keep or add income replacement coverage.
• After an accident, apply promptly and ask your employer to complete the OCF-2.
• Keep records of your earnings, missed work and medical appointments.
• If your IRB is denied or stopped, ask for written reasons and get advice.
Conclusion
The income replacement benefit in Ontario turns on the policy election and the claim facts. Contact Booni Law at admin@boonilaw.com or +1 (226) 271-1751 to discuss your coverage documents. No outcome is promised.
Frequently Asked Questions
Is income replacement still available in Ontario after July 1, 2026?
Yes, but only as optional coverage. Whether you have it depends on your policy. Many renewed policies kept prior coverage unless the policyholder declined it in writing.
How much is the income replacement benefit?
The pre-July 2026 standard limit was up to $400 per week, with optional increases available. Current amounts depend on the coverage purchased.
What is the OCF-10?
It is an election form used where a claimant qualifies for more than one of the income replacement, non-earner or caregiver benefits and must choose one.
I was a pedestrian. Can I claim IRB?
Possibly, through a policy that responds to your claim, but only if that policy includes income replacement coverage.
Can I also claim lost income from the at-fault driver?
Potentially, through a tort claim, subject to Insurance Act limits and deductions for benefits received.
Questions about income replacement after an accident?
If you are unsure whether you have income replacement coverage, or your claim has been denied or reduced, Booni Law can review your policy and the documents you have received. Email Booni Law at admin@boonilaw.com or call +1 (226) 271-1751. Outcomes depend on the policy terms and the facts.
Disclaimer: This article is provided for general informational purposes only and does not constitute legal advice. Reading this article does not create a solicitor-client relationship between you and Booni Law. The information in this article may not reflect the most current legal developments and should not be relied upon as a substitute for professional legal advice tailored to your specific circumstances. If you require legal advice, please contact Booni Law.
