Deductibles for general damages in personal injury claims arising from motor vehicle accidents

November 25, 2015

On August 1, 2015, amendments to Ontario’s Insurance Act took effect, changing the deductibles that apply to general damages awarded to victims of motor vehicle accidents who have suffered permanent serious disfigurements or impairments. General damages are those amounts awarded to an individual for their pain, suffering and loss of enjoyment of life.

For a person injured in a motor vehicle accident, the general damages award will now be reduced by $36,540 if the award is under $121,799.  For awards over that amount, there is no deductible. (Previously, this deductible was $30,000 and only applied to general damages awards under $100,000.) The new deductible and threshold amount to which it applies will from now on be revised each January to account for inflation.

Awards made to family members of a person injured or killed in in a motor vehicle accident to compensate for a loss of “care, guidance and companionship” will also now be subjected to a deductible of $18,270 if the award is under $60,899. (The deductible was previously $15,000, and applied only to damages awards under $50,000.) As most awards are relatively minimal, this deductible may well erradicate many family law act claims. These amounts will also be revised yearly for inflation. 

For more information, contact Caroline Failes at 613.566.2849 or [email protected]