Financial Services Commission of Ontario issues important decision regarding post-accident income deductions for self-employed insureds

August 18, 2017

Perth and Surani Appeal Order P16-00022

On August 18, 2017, the Financial Services Commission of Ontario (FSCO) issued an important decision concerning deductions of post-accident income for self-employed individuals. The appeal confirmed that a self-employed insured’s post-accident business income is deductible from their income replacement benefits for the purposes of paragraph 7(3)(b) of the Statutory Accident Benefits Schedule – Effective September 1, 2010, O. Reg. 34/10. Delegate Evans overturned the Arbitrator’s decision which permitted the deduction only if the self-employed claimant remained ‘actively-engaged’ in the business post-accident.

This decision has important implications for the insurance industry because, had the Arbitrator’s decision prevailed, insurers would have paid out significant amounts of income replacement to self-employed insureds whose businesses were still operating and paying them income.

Helen D.K. Friedman and Ashleigh Leon of Miller Thomson represented Perth Insurance Company in this successful appeal.

Detailed case summary