What’s Changing
Starting July 1, 2026, Ontario’s SABS shifts from a standardized mandatory benefit package to a consumer “opt-in” model. Only three benefits will remain automatic in every auto policy: Medical, Rehabilitation, and Attendant Care.
Everything else — including Income Replacement Benefits (IRB), Non-Earner Benefits, Caregiver, and Housekeeping Benefits — becomes optional coverage that must be selected at the time of policy purchase or renewal. IRB entitlement will no longer be a given on every file. Policies issued before July 1, 2026 will generally continue at renewal unless the policyholder actively makes changes.
Impact on the Plaintiff
Clients who do not opt into IRB coverage will have no entitlement to income replacement benefits, regardless of how serious their injuries are or how significantly their ability to work has been affected. Many will not realize this gap exists until after an accident has already occurred.
Those with variable income, self-employment, or non-traditional employment histories will be especially vulnerable, both from a coverage standpoint and in meeting the documentation standards insurers now expect. The burden on plaintiffs to substantiate their claims, financially and medically, is meaningfully higher under the new framework.
It’s also worth noting a likely shift in the composition of IRB claims. As employed individuals with standard payroll documentation are better positioned to have selected IRB coverage or to have had it selected for them through group benefits. We expect to see a relative decline in traditionally employed IRB files and a slight decline of self-employed and variable-income claims, which are inherently more complex to document and support.
Impact on Legal and Law Firms
Coverage can no longer be assumed. Confirming which benefits are actually available under a client’s policy must become a routine intake step, files built on the assumption of IRB entitlement without verification will face avoidable challenges down the line.
From a volume standpoint, the opt-in model is expected to result in a blended decrease of approximately 20% in IRB claims across the industry as fewer policies carry the coverage. For law firms, this means fewer straightforward employed-claimant IRB files and a caseload that skews toward more complex, higher-effort claims, making efficiency and early file strategy even more critical to profitability.
As accident benefits coverage narrows and more entitlement questions go unresolved, a greater volume of income loss and impairment disputes will be pushed into civil litigation and mediation. Lawyers should expect increased demand for well-supported expert evidence on the tort side, and should factor a weakened AB entitlement picture into their overall file strategy.
Key Takeaways for Lawyers
- Verify IRB coverage at intake — don’t assume it exists; confirm what was selected at the time of policy purchase or renewal
- Document income early and thoroughly, particularly for self-employed, contract, or variable-income clients where gaps are harder to remedy later
- Prepare clients for insurer examinations and build a rebuttal strategy into the file from the outset
- Anticipate more files moving toward tort — civil litigation and mediation will absorb disputes that previously resolved through the accident benefits stream
- Use advisory reports early — an independent, structured income loss analysis strengthens your positioning in both negotiation and litigation, and helps identify evidentiary gaps before they become problems.
The July 2026 reforms represent a fundamental shift in how income loss claims are structured, documented, and contested in Ontario. For legal professionals managing these files, early preparation and strong evidentiary support are no longer optional and they are essential to protecting your clients and your file.
Great Oak VFA works alongside personal injury lawyers, paralegals, and law clerks across Ontario, providing clear, defensible IRB reports and advisory services at every stage of the file.
Connect with our team to learn more about our loss of income SHORT report by emailing info@greatoakvfa.ca