What is the cap for the Income Replacement Benefit without increases?

The Income Replacement Benefit typically serves to provide financial assistance to individuals who are unable to work due to injuries sustained in an accident. This benefit plays a pivotal role in ensuring that individuals can manage their living expenses while they recover.

The correct answer reflects the specific limit set out by regulations, which states that the cap for the Income Replacement Benefit without increases is $400 per week. This amount is designed to offer a basic level of financial support, taking into consideration factors such as the average earnings of the population and the overall objectives of the insurance scheme in providing adequate support during recovery periods.

Understanding the exact cap helps in assessing the financial planning required for individuals who may rely on this benefit. The stipulated amount also interacts with other elements of coverage, such as the potential for increases based on various conditions set within the insurance policy. This foundational knowledge is important for any insurance broker, as it impacts both the advice given to clients and the management of claims.