Calculation of damages for loss of income – reductions
265.4(1)In an action for damages arising out of an accident, the amount recoverable by the plaintiff as damages for loss of income between the date of the accident and the date of the judgment shall, subject to subsection (4), be reduced by
(a)
all payments that the plaintiff received for loss of income during that period under an enactment of any jurisdiction or under an income continuation benefit plan,
(a.1)
all payments that the plaintiff received for loss of earning capacity during that period under a policy of disability insurance, and
(b)
all payments that the plaintiff received during that period under a sick leave plan arising by reason of the plaintiff’s occupation or employment, whether or not the plaintiff’s credits under that plan can be characterized as a capital asset.
265.4(2)Where payments referred to in subsection (1) are taxable as income, the amount of the reduction made under that subsection shall be the amount of the payments less the applicable income tax.
265.4(3)Notwithstanding any enactment or agreement or the terms of any plan or policy of disability insurance, but subject to subsection (4),
(a)
a person who makes a payment referred to in subsection (1) is not subrogated to the right of recovery of the plaintiff against another person in respect of that payment, and
(b)
a plaintiff who has received a payment referred to in subsection (1) and who subsequently receives an award of damages is not required to reimburse the person who made the payment.
265.4(4)Paragraph (1)(
a) does not apply to payments made under an enactment that expressly permits the person who makes the payments to recover the amount of the payments from the plaintiff or the defendant.
265.4(5)This section applies only to accidents occurring on or after the commencement of this section.
1996, c.55, s.2; 2003, c.22, s.4