The income replacement indemnity paid by the SAAQ compensates for the income lost by a person who can no longer work as a result of a traffic accident.
You have a maximum of 3 years as of the date of the accident, the onset of injury or the death of an accident victim to file a compensation claim with the SAAQ.
The income replacement indemnity is an amount paid to a person who can no longer work as a result of a traffic accident.
The income replacement indemnity is calculated on the basis of the employment the person held at the time of the accident.
It corresponds to 90% of net annual income, calculated on the basis of a gross annual income of up to $90,500. 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.
If you are imprisoned because you were convicted of a driving-related Criminal Code offence, the SAAQ may reduce the amount of your income replacement indemnity for the duration of your incarceration.
The income replacement indemnity you receive will be re-evaluated if you are still unable to work 6 months after the accident. At that time, it will be calculated on the basis of full-time employment. This employment could be the one you held at the time of the accident or a potential employment, i.e. one that you could have held at the time of the accident.
You may be entitled to an income replacement indemnity during the first 6 months that follow the accident only if, as a result of the accident, you are unable to hold employment you would have held during this period had the accident not occurred, or you are deprived of Employment Insurance benefits.
If you are still unable to work 6 months after the accident, your situation will be reassessed based on an employment you could have held at the time of the accident, taking into account, in particular, your training and work experience. You may be entitled to an income replacement indemnity based on this employment.
As of the date that is 12 months following the date of your accident, your income replacement indemnity could be calculated based on a gross income that must not be less than the average weekly earnings of Québec workers.
The injuries and impairment granting entitlement to such an indemnity are prescribed by regulation and include the following:
Your income replacement indemnity will continue to be paid for however long we determine you are unable to work.
Starting on your 65th birthday, your income replacement indemnity will be reduced by 25%. It will then be reduced by 50% on your 66th birthday and by 75% on your 67th birthday. If you are still entitled to an indemnity on your 67th birthday, the amount will be reassessed and you may be entitled to receive an indemnity until your death.
Your income replacement indemnity will be reduced by 25% at the beginning of the 2nd year following the date of the accident, by 50% at the beginning of the 3rd year, and by 75% at the beginning of the 4th year. If you are still entitled to an indemnity at the beginning of the 4th year, the amount will be reassessed and you may be entitled to receive an indemnity until your death.
The income replacement indemnity paid until an accident victim’s death is calculated as follows:
40% × income replacement indemnity at 67 years of age or at the beginning of the 4th year after the accident1 ×
number of days during which an indemnity was received2 ÷ 14,6103
If the income replacement indemnity paid until death is greater than the indemnity to which you are entitled at 67 years of age or at the beginning of the 4th year following your accident, the income replacement indemnity paid until death is the indemnity you will receive as of age 67, or as of the 4th year following your accident.
On Violet’s 67th birthday, the SAAQ calculated the income replacement indemnity to which she would be entitled until her death, as follows:
40% × $33,556 (income replacement indemnity at 67 years of age, without the reduction) × 8,395 days (number of days during which Violet received an indemnity) ÷ 14,610
Annual income replacement indemnity payable until Violet’s death: $7,712
Violet is entitled to an annual income replacement indemnity in the amount of $7,712 from her 68th birthday until her death.
On Shane’s 67th birthday, the SAAQ calculated the income replacement indemnity to which he would be entitled until his death, as follows:
40% × $36,294 (income replacement indemnity at 67 years of age, without the reduction) × 14,610 days (maximum number of days that can be taken into consideration) ÷ 14,610
Annual income replacement indemnity payable until Shane’s death: $14,518
The income replacement indemnity to which Shane is entitled until his death is greater than the original indemnity reduced by 75%.
Shane is entitled to an annual income replacement indemnity in the amount of $14,518 from his 68th birthday until his death.
Your income replacement indemnity will be reduced by 25% at the beginning of the 2nd year after the date of the accident, by 50% at the beginning of the 3rd year, and by 75% at the beginning of the 4th year. Payment of your indemnity will cease completely at the end of the 4th year after the date of the accident.
You are entitled to an income replacement indemnity as long as that employment remains available and you are unfit to hold it because of the accident. However, the indemnity ceases to be paid at the end of the school year in which you turn 16.
You are entitled to an income replacement indemnity as long as the employment remains available and you are unfit to hold it because of the accident. However, the indemnity ceases to be paid on the scheduled date of completion of studies at the time of the accident.
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.
About income replacement indemnities…
Last update: January 10, 2023