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Shareholder loans from a pre-accident business are not deductible as post-accident employment income from income replacement benefits.
The applicant was injured in a motor vehicle accident and received statutory accident benefits, including income replacement benefits.
The insurer sought to deduct 80 per cent of post-accident payments made to the applicant by his pre-accident business, arguing they were employment income disguised as a loan.
The arbitrator found that the payments were a genuine loan and that the applicant was not engaged in post-accident employment.
Furthermore, a shareholder benefit in the form of a loan is not considered employment income under the Schedule.
The insurer was precluded from deducting the payments from the applicant's income replacement benefits.
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