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Auto Insurance: Understanding the Income Replacement Indemnity with Autopac

Accidents can happen when we least expect them, and being prepared for the unexpected is crucial. Manitoba Public Insurance's (MPI) Personal Injury Protection Plan (PIPP) is designed to provide peace of mind to Manitoba residents involved in automobile accidents. One of the key components of PIPP is the Income Replacement Indemnity (IRI) benefit, which ensures that your financial well-being remains intact during challenging times.

What is the Personal Injury Protection Plan?

The Personal Injury Protection Plan (PIPP) offered by MPI is a comprehensive insurance package that provides coverage for individuals injured in automobile accidents. This coverage encompasses medical expenses, rehabilitation costs, and various benefits to help you recover and regain control of your life.

Understanding the Income Replacement Indemnity Benefit

The Income Replacement Indemnity benefit is a vital aspect of PIPP that aims to safeguard your financial stability if you are unable to work due to accident-related injuries. This benefit provides you with 90% of your lost yearly net income, helping you cover your essential expenses while focusing on your recovery. One important thing to note is that the IRI benefit is subject to a yearly maximum, which means high income earners may have insufficient coverage.

Maximum Benefit Payable and the Importance of Additional Coverage

It's important to be aware of the maximum benefit payable under the Income Replacement Indemnity benefit. The maximum insurable gross income for 2023 is $110,500 with this amount indexed annually for inflation. If your income falls below this threshold, you have nothing to worry about. However, what if your income exceeds this limit? This is where purchasing additional coverage becomes a wise choice.

For individuals with incomes above the yearly limit threshold, it's highly recommended to consider buying extra coverage. This ensures that your higher income is adequately protected in the event of an accident. By opting for supplementary coverage, you can bridge the gap between your actual income and the capped benefit, granting you greater financial security during your recovery period.

Peace of Mind for a Secure Future

When accidents disrupt your life, the last thing you should worry about is your financial stability. Manitoba Public Insurance's Income Replacement Indemnity benefit offers a safety net that ensures you can focus on healing without the added burden of financial stress, however it is important to be aware of the limits imposed for higher income earners. Your Autopac insurance broker is your best resource to ensure that you have the appropriate coverage for your unique situation.


Teresa Matskiw, CAIB
Love & Persson Group - Insurance Broker