An accident resulting in injury can have a major impact on your finances. Social security often provides a basic safety net, but how does this interact with a personal injury claim? This article addresses the relationship between personal injury and benefits, specifically for residents of Rijswijk.
Types of benefits in personal injury cases
In the event of injury due to an accident, various social security schemes may apply, depending on your situation.
Overview of relevant benefits
| Type of benefit | When applicable | Responsible authority |
|---|---|---|
| Sickness Benefits Act (ZW) | No employer or after contract ends | UWV |
| Work and Income (Capacity for Work) Act (WIA (WGA/IVA)) | Long-term work incapacity after 2 years | UWV |
| Youth Disability Act (Wajong) | Work incapacity from young age | UWV |
| Unemployment benefit (WW) | Dismissal and fit for work | UWV |
| Social assistance (Participation Act) | No other sources of income | Municipality of Rijswijk |
Relationship between benefits and compensation
Both benefits and compensation payments aim to compensate for loss of income. This can lead to overlap and questions about allocation.
Offsetting of benefits
Benefits received are often deducted from the compensation for loss of income, to prevent double compensation.
Practical example
Suppose your annual loss of income is €50,000 and you receive €30,000 in WIA benefit. Then €20,000 remains as residual damage, to be compensated by the liable party.
Subrogation rights of authorities
Authorities such as the UWV can recover paid amounts from the party liable for your injury.
Overview of subrogation rights
| Authority | Legal basis | What is recovered |
|---|---|---|
| UWV | Art. 99 WIA, art. 52a ZW | ZW and WIA benefits |
| Health insurer | Art. 83b HIA | Costs of care |
| Employer | Art. 6:107a CC | Continued salaries |
| Municipality of Rijswijk | Art. 62 Participation Act | Social assistance benefits |
WIA process and personal injury claims
After two years of work incapacity, you must apply for a WIA benefit, which is separate from your personal injury case.
Key points
- The WIA assessment by UWV is independent of personal injury
- UWV applies its own assessment criteria
- The WIA percentage does not always correspond to disability
- Objection to a WIA decision may be necessary
Impact on social assistance in Rijswijk
A received compensation payment can affect your entitlement to social assistance, depending on your assets.
Regulations
- Social assistance serves as the last safety net with an assets test
- Assets exceeding the exemption threshold must first be used
- Pain and suffering compensation up to €15,000 is exempt
- Municipality of Rijswijk may exempt non-material compensation
Consequences for allowances
Compensation payments can affect your entitlement to allowances from the Tax Authorities.
Effect on allowances
| Type of allowance | Impact of compensation |
|---|---|
| Healthcare allowance | Income counts, assets partly not |
| Rent allowance | Both income and assets play a role |
| Childcare allowance | Income is relevant |
| Child-related budget | Income and assets are taken into account |
Tax rules for personal injury
In general, personal injury compensation is tax-free, but there are exceptions.
Tax treatment
- Pain and suffering: no tax due
- Loss of income: compensation on net basis, hence tax-free
- Yield on assets: taxable in box 3
Practical advice for Rijswijk
- Inform benefits authorities about your personal injury case
- Be aware of subrogation rights of UWV and others
- Request exemption for pain and suffering from Municipality of Rijswijk
- Consult an expert in personal injury and social security
- Take into account effects on allowances and tax
Local support in Rijswijk
For legal assistance, you can go to the Juridisch Loket Rijswijk. In addition, cases often fall under the jurisdiction of the District Court of The Hague.