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, the onset of injury or death to file a compensation claim with 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 corresponds to 90% of net annual income, calculated on the basis of a gross annual income of up to $72,500. 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 imprisoned because you were convicted of a Criminal Code driving offence, the SAAQ may reduce the amount of your income replacement indemnity for the duration of your incarceration. 

If you were employed on a part-time or temporary basis

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. 

If you were 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. 

You may be entitled to an income replacement indemnity during the first 6 months that follow the accident if, as a result of the accident, you are unable to hold employment you would have held or you are deprived of Employment Insurance benefits. 

If you are still unable to work 6 months after the accident, we will begin paying you an income replacement indemnity based on a potential employment. These terms do not apply if you were aged 65 or older at the time of the accident. 

Duration of the income replacement indemnity

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

Your income replacement indemnity is paid for as long as we determine that you are unable to work. Starting on your 65th birthday, however, the indemnity will be reduced by 25%. It will then be reduced by 50% on your 66th birthday and by 75% on your 67th birthday, and will end completely on your 68th birthday. 

If you were 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 date of the accident, by 50% as of the 3rd year, and by 75% as of the 4th year. Payment of your indemnity will cease completely at the end of the 4th year after the date of the accident.

If you are under 16 years of age and held or would have held employment

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.

If you are a student aged 16 or older and were attending an educational institution on a full-time basis and you held or would have held employment

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. 

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, social programs or benefits paid by other entities, such as the Commission des normes, de l’équité, de la santé et de la sécurité du travail, the Ministère du Travail, de l’Emploi et de la Solidarité sociale, the Régime québécois d’assurance parentale or the Régime des rentes du Québec.
  • They are subject to garnishment for spousal or child support payments.
  • They are indexed every year.