What is the maximum benefit from a loss claim according to the benefit of disability provision?

The benefit of disability provision in an insurance policy is designed to provide financial support to an insured who has experienced a loss due to disability. In this context, the correct assertion is that the maximum benefit from a loss claim will equal the insured's earnings prior to the accident. This principle is foundational in that disability benefits aim to replace lost income, ensuring that the insured can maintain a similar standard of living as they had before the disability occurred.

This alignment with the insured's pre-accident earnings serves to ensure that the coverage is adequate enough to meet their financial needs. The provision typically establishes that the benefit amount is linked to the insured's earnings to prevent excessive payouts that might not correlate with the actual financial loss experienced. Therefore, the intention is to cover lost income up to the level that was previously earned, hence providing a stable financial footing during the period of disability.

This foundational principle explains the logic behind establishing the benefit at an amount that matches prior earnings, safeguarding the insured against unaffordable living expenses resulting from their inability to work.