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What Loss of Earnings Does TAC Pay?

1. TAC is not required to make any payment for any lost earnings sustained in the first five days from the date of the transport accident, except in cases of acute financial hardship.

2.  Medical certificates stating that you were unable to work must be supplied to the TAC.

3. If you are unable to work as a result of injuries, TAC will pay 80% of your pre­accident weekly earnings. If a partial loss of earnings is sustained, TAC will pay 85% of the difference between pre-accident and post-accident earnings. All payments are taxable and subject to a statutory maximum amount.

4. The calculation of your pre-accident earnings will depend on your particular circumstances:

  • (a) If you were continuously employed or self-employed for 12 months prior to the car accident, the TAC will assess your pre-accident weekly earnings based on your gross earnings for the 12-month period averaged over 52 weeks.
  • (b) If you were in continuous employment or self-employed for less than 12 months up to the date of accident, then the calculation will be based on gross earnings for the period averaged over the number of weeks worked.
  • (c) Different methods of calculation apply if your earnings significantly increased during the 12 months before the accident and depending on circumstances loss of earnings may be assessed from the date of increased earnings.
  • (d) If you were unemployed at the date of the transport accident but have been employed for some period in the 12 months before the accident, TAC will calculate the weekly average over 52 weeks of all earnings received during the 12-month period.
  • (e) If you had entered into an employment arrangement prior to the transport accident but had not started, all previous earnings will be disregarded and your average weekly earnings will be based on what you expected to earn in your new job.

 

5.    After 18 months, TAC will review eligibility and where incapacity exists, make payments for loss of earning capacity. The amount paid is not taxable and is calculated on the difference between your pre-accident earning capacity and post-accident earning capacity. The payment is subject to a statutory maximum.

6.    Loss of earning capacity benefits cease three years after the accident, unless you have an impairment of 50% or more. If so, payments can continue until retirement age or unless common law damages are paid for loss of earning capacity.

 

Galbally & O’Bryan can advise on claims.