Mistake #2: You agree with ICBC to an excessive reduction of your wage loss claim from Gross to Net
If you missed time from work due to your injuries, you likely have a wage loss claim. Depending on the kind of work you do, this can be simple or complicated. For example, a salaried employee vs. an hourly employee vs. a self-employed business owner or professional.
In a basic situation, ICBC will often claim that they are entitled to reduce your income loss claim by 30% to arrive at a net figure.
This reduction should usually be much less.
Why? The deduction depends on which tax bracket you would have otherwise fit into for that particular year. 30% is close to the highest tax bracket.
- Consider which bracket you actually fall into. Here is a link to the CRA site that will help: click here.
- Discuss the deduction rate that the ICBC adjuster is applying to your situation and how they arrived at their figure.
- Take an initial free consultation with an experienced personal injury lawyer, as this is often more complex.