Arbitrator determines quantum of income replacement benefits for self-employed applicant and awards interest on overdue payments.
The applicant was injured in a motor vehicle accident and claimed income replacement benefits (IRBs) from his insurer.
The parties disputed the quantum of the IRBs, specifically regarding the calculation of the applicant's self-employment income and post-accident business losses from two sole proprietorships.
The arbitrator rejected the applicant's accounting approach, which treated the two businesses as distinct and allocated all expenses to one, finding it would result in overcompensation.
The arbitrator determined the base IRB and awarded additional IRBs for post-accident losses during a reasonable six-month winding-down period for one of the businesses.
The arbitrator also awarded interest on overdue payments, finding the insurer failed to pay the established losses in a timely manner.
OFSCDRSOntario Financial Services Commission - Dispute Resolution ServicesOct 31, 2006
