Majority of the injury benefit programs provide coverage for what you may know, but there are also certain things not usually covered by normal insurance policies. It’s advisable to know your rights before you file a claim. As a guide, here are 5 things you probably weren’t aware of about injury benefit programs like QCARE.
1. A Big Percentage of Payouts Cover Actual Losses
The only part of the compensation that’s not intended to reimburse actual losses is the general damages, often called ‘pain and suffering’. The remaining portion of the payout is usually to cover the past as well as future economic losses, care, and medical and rehabilitation expenses.
2. Most Payouts Aren’t Taxed
Most injury benefit payouts are not taxed. Besides, you don’t have to disclose the payout in your income tax return. But, due to how it is used, it can attract tax. A good example is when the payout is invested and it earns interest. You will have to pay tax on the interest.
3. Some Benefits Are Not Accessible Until a Year Following An Injury
The aim of injury benefit payouts is to compensate an individual for losses they sustained not just from the time of the injury to the settlement date, but also in the future. But the problem that often arises is that it’s not easy to predict the future. Doctors are only able to tell how an injury might pan out after it has stabilized. This might take as much as one year after the injury. You will have to wait until this time for your lawyer to advise you on the amount you are likely to get as compensation.
4. Some Injuries May Not Be Covered
There are certain types of injuries that are beyond the scope of injury benefit programs. For instance, the following types of injuries may not be compensated by the program:
- Self-inflicted injuries
- Injuries that occurred during a commission of a crime
- Work-related injuries that occurred when a person was not on the job
- When a person violated a public policy or a company’s policy.
5. You Could Be Entitled To a Part of Your Legal Expenses
For injuries caused by motor vehicle accidents, a portion of the injury benefit may be set aside to cater to the legal expenses of the injured person. This often varies according to the injury date.
The point here is that you need to thoroughly read the terms and conditions of injury benefit programs so that you know what is covered and what’s not. Some of the details you may consider as minor can make a great difference when you file or apply for an injury benefit program. For instance, you should be aware of the benefits that are payable as well as the right steps to take when an injury occurs. Besides, it is important to understand the tax implications of the benefits as well as the interactions of other benefits with the injury benefit program.