An accident resulting in injury can have a major impact on your financial situation. Social security provides support, but how does this work together with a personal injury claim? This article discusses the relationship between personal injury and social benefits in the Westland region.
Key Social Benefits
In case of personal injury, you may be eligible for various benefits under social security.
Overview of Relevant Benefits
| Type of Benefit | Application | Authority |
|---|---|---|
| Sickness Benefits Act (ZW) | In the absence of an employer or after termination of contract | UWV |
| WIA (WGA/IVA) | Work disability longer than 2 years | UWV |
| Wajong | Work disability from a young age | UWV |
| Unemployment Act (WW) | Dismissal, provided fit for work | UWV |
| Social Assistance (Participation Act) | No other source of income | Municipality of Westland |
Relationship between Benefits and Compensation
Both benefits and compensation are intended to cover income loss, raising questions about overlap.
Offsetting of Benefits
Received benefits are often deducted from the compensation for income loss to prevent double compensation.
Practical Example
Suppose your annual income loss is €50,000 and you receive €35,000 via a WIA benefit. Then €15,000 remains as claimable damage from the liable party.
Subrogation Rights of Authorities
Benefit authorities have the option to recover paid amounts from the liable party.
Overview of Subrogation Rights
| Authority | Legal Basis | Recovered Costs |
|---|---|---|
| UWV | Art. 99 WIA, art. 52a ZW | ZW and WIA benefits |
| Health Insurer | Art. 83b HIA | Costs for medical care |
| Employer | Art. 6:107a CC | Continued salary |
| Municipality of Westland | Art. 62 Participation Act | Social assistance benefits |
WIA Application in Personal Injury
If you have been work disabled for longer than 2 years, you must apply for a WIA benefit via the UWV.
Key Considerations
- The WIA assessment is independent of your personal injury claim
- The UWV applies its own assessment criteria
- The WIA percentage does not always correspond to the degree of disability
- Objection or appeal against a WIA decision may be necessary
Impact on Social Assistance in Westland
A received compensation may affect your entitlement to social assistance via the Municipality of Westland.
Regulations
- Social assistance applies as the last safety net and includes an assets test
- Assets above the exemption threshold must first be used
- Pain and suffering compensation up to €15,000 is exempt
- Non-material compensation may be exempted by the municipality
Effect on Allowances
Compensation may also affect allowances you receive.
Overview of Impact on Allowances
| Type of Allowance | Effect of Compensation |
|---|---|
| Healthcare Allowance | Income counts, assets up to threshold do not |
| Rent Allowance | Both income and assets count |
| Childcare Allowance | Income counts |
| Child-Related Budget | Income and assets count |
Tax Implications
In general, personal injury compensation is tax-free, but there are exceptions.
Tax Rules
- Pain and Suffering: fully exempt
- Income Loss: compensation for net loss is non-taxable
- Return on Assets: taxable in box 3
Practical Advice
- Inform benefit authorities about your personal injury claim
- Be alert to possible subrogation claims from UWV or others
- Request the Municipality of Westland for exemption of pain and suffering compensation
- Consult an expert familiar with social security and personal injury
- Take into account the impact on allowances and tax obligations