Public Automobile Insurance Plan

Income Replacement Following a Traffic Accident

The income replacement indemnity paid by the SAAQ compensates the income lost by a person who can no longer work as a result of a traffic accident.

Warning

You have a maximum of 3 years as of the date of the accident to file a compensation claim to the SAAQ.

What you should know

The income replacement indemnity is an amount paid to a person who can no longer work as a result of a traffic accident.

Amount of the income replacement indemnity

The income replacement indemnity is calculated on the basis of the employment the person held at the time of the accident.

It represents 90% of the person's net annual income, up to a maximum indemnity of $71,500. The maximum amount of the indemnity is indexed every year.

No income replacement indemnity is paid for the first 7 days that follow the accident. After this period, it is paid every 14 days.

Warning

If you are convicted of an offence under the Highway Safety Code or the Criminal Code, the SAAQ may reduce the amount of certain indemnities.

If you are a part-time or temporary worker

The income replacement indemnity you receive will be re-evaluated 6 months after the accident. At that time, it will be calculated on the basis of full-time employment.

If you are unemployed

As of the 181st day after the accident, if you are still unable to work, we will begin payment of an income replacement indemnity based on potential employment, i.e., employment that you could have held.

Duration of the income replacement indemnity

If you are under 64 years of age at the time of the accident

The income replacement indemnity is paid for as long as we determine that you are unable to work. Starting at age 65, however, the indemnity will be reduced by 25% every year and will end completely at age 68.

If you are aged 64 or older at the time of the accident

Your income replacement indemnity will be reduced by 25% as of the 2nd year after the accident. Payment of the indemnity ceases to be paid completely at the end of the 4th year after the accident.

If you are a student under 16 years of age and hold paid employment

The income replacement indemnity ceases to be paid at the end of the school year in which you reached the age of 16.

If you are a student aged 16 or older and hold paid employment

The income replacement indemnity ceases to be paid on the scheduled date of completion of studies at the time of the accident.

If your state of health deteriorates

In the event of a deterioration in your state of health – on condition that this deterioration is directly related to the same traffic accident–, you may request that we reassess your case.

Useful information

About income replacement indemnities…

  • They are not considered taxable income, but they may have an impact on certain tax credits or social programs.
  • They are subject to garnishment for spousal or child support payments.
  • They are indexed every year.