Wyatt Dowling Insurance Brokers

Income Replacement Indemnity (IRI) Coverage and Extension

July 12, 2022

If you’re injured in an auto accident, Income Replacement Indemnity (IRI) replaces your income if you can’t go back to work due to your injuries.

IRI has a cap and if you’re a higher income earner making over $108,000 this year, you should consider an extension to your IRI coverage to help replace your income.

At Western, we take pride in exceeding expectations by delivering the right insurance solution at every opportunity. Because we care.

To ensure you and your family are protected in the event of an injury, let’s review the basics of IRI Coverage and IRI Extension.

How does IRI help me if I can’t go back to my full-time job?

Income Replacement Indemnity replaces 90% of your net income, up to a maximum amount, if you have a disabling injury that prevents you from returning to your permanent full-time job.

Payments begin after a seven-day waiting period and they continue for as long as you can’t go back to work due to your auto accident injury.

What if I am a temporary or part-time worker?

You will receive 90 per cent of your net income, up to a maximum amount, for the first 180 days after an accident that prevents you from working. Note that if your injuries prevent you from working after 180 days, you will get IRI based on the employment that you were capable of doing right before your injury, as if you had been employed full-time.

For other employment and non-employment situations involving IRI, check with your Wyatt Dowling insurance expert.

IRI is part of Manitoba Public Insurance (Autopac)

Income Replacement Indemnity is part of the Manitoba Public Insurance’s Personal Injury Protection Plan (PIPP) benefits.

All residents of Manitoba who are hurt in auto accidents in Canada or the United States and can’t go back to work due to disabling injuries are entitled to PIPP benefits.

What is an Income Replacement Indemnity (IRI) Extension?

It’s optional coverage that is an extension to your IRI. You should consider an IRI Extension if you will earn more than $108,000 in 2022 and you don’t have disability insurance through your employer, or any other type of disability insurance. (The maximum was $103,500 in 2021.)

With IRI Extension coverage, you would get 90% of your net income if you have a disabling injury from the auto accident you were in. The seven-day waiting period still applies.

What are other benefits from an IRI Extension?

Fatality payments: IRI Extension coverage will mean higher payments to your spouse or common-law partner, or to your dependents if you're a single parent, if you are killed in a motor vehicle accident. The payments are calculated using your extended IRI coverage, rather than PIPP's limit.

Retirement Income Benefit: If you qualify for a Retirement Income Benefit, your payments may be greater because the calculation uses your extended IRI coverage rather than PIPP's limit.

How do I get IRI Extension coverage?

You can get IRI Extension coverage by contacting your Wyatt Dowling insurance expert.

You can buy it in increments of $10,000. The cost is $20 per increment, with a minimum policy premium of $50. You can buy up to $200,000 over the PIPP limit.

But you need to remember: Your income replacement is still based on actual income you've lost. Speak to your Wyatt Dowling insurance expert about it.