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Part I: Sources of Income after Serious Personal Injury

An accident causing a permanent disability is, without question, a profound life changing experience for the injured individual and his or her family. If the resulting disability is severe enough that the individual can no longer work, the prospect of no future income becomes a major concern. There are a variety of means through which a disabled individual can obtain some form of income replacement.

The Alberta government provides income support to persons with permanent disabilities through AISH - Assured Income for the Severely Handicapped. A severe handicap is one that prevents the person from earning an income through employment. To qualify for AISH, however, there are strict limitations on the amount of assets an applicant can own and the amount of income an applicant can receive before benefits are reduced. I will discuss these in more detail shortly.

Disability insurance is the next most obvious income replacement program for those employees who have disability insurance coverage through group plans, or if self-employed, through their own privately purchased disability insurance policy. The purpose of disability insurance is to protect against the loss of income resulting from a permanent disability. Disability insurance provides income replacement benefits to workers who are “totally disabled” as defined in the policy. The key is whether the policy protects against an inability to perform the duties of one’s own occupation, or any occupation. I will discuss these distinctions in turn.

For those individuals whose injury and subsequent disability were caused by the fault of a third party, as in a car accident or medical malpractice situation, a tort claim (a lawsuit) might lead to compensation in the form of damages. A typical damages award will include a claim of general damages for pain and suffering and loss of amenities of life, but it will also include damages for future loss of income.

This is a 4 part series and part 2 through 4 will be posted over the coming weeks.