Question

The purpose of the Income Replacement Benefit under the Accident Benefits coverage is to provide

a) A substitute for some earnings that the insured may lose if the injury prevents him from working.
b) Payment for any medical expenses that the insured may incur
c) Punitive damages if the insured ends up suffering from total disability or dismemberment
d) The insured with temporary funds for the period of injury until such time as all of the lost earning are recovered form the responsible party

Answer 1

The Income Replacement Benefit under Accident Benefits coverage is designed to compensate insured individuals for lost wages if they are unable to work due to an injury, distinguishing it from other benefits aimed at covering medical costs or providing punitive damages.

Step-by-step explanation:

The purpose of the Income Replacement Benefit under the Accident Benefits coverage is to provide a substitute for some earnings that the insured may lose if the injury prevents him from working. This benefit is similar in nature to other forms of compensation such as disability insurance, where workers must show a long-term incapacity to work, and workman's compensation insurance, where employers fund benefits for work-related injuries. Unlike payments for medical expenses, punitive damages, or temporary funds reclaimed from the responsible party, Income Replacement Benefits specifically address lost wages due to an inability to work due to an injury.