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.

For a detailed case summary, click here.