Income Replacement Coverage under the OAP1 is limited to:

Income Replacement Coverage under the Ontario Automobile Policy (OAP1) specifically provides benefits to individuals who suffer loss of income due to an automobile accident. The correct statement about this coverage is that it compensates the injured person for 70% of their net weekly income, capped at a maximum of $400 per week. This structure ensures that individuals who are unable to work as a result of injuries incurred in an accident receive some financial support, helping to mitigate the economic impact of their inability to earn income during their recovery.

This coverage aims to provide a level of financial security for those who rely on their earnings, as it helps replace a portion of their lost income due to the accident. The limit imposed, both in terms of the percentage and the cap, reflects the policy's intention to balance providing assistance with controlling costs for insurers.

The other options provided do not accurately characterize the provisions of the OAP1 Income Replacement Coverage. For example, while certain eligibility criteria exist, the coverage is not exclusively for individuals who were working at the time of the accident; it extends benefits based on the injured person's income situation. Thus, the emphasis on a specific repayment structure—70% of income capped at $400—illustrates the intended financial support outlined in the