Why Am I Getting Less in My Case?

In motor vehicle accident claims, there is a deductible applied that automatically reduces any settlement or award amount. Unlike the deductible for a property damage claim, this deductible is not paid out of pocket.

Instead, the insurer of the at-fault party keeps the deductible amount for your damages for pain and suffering. It is a savings to the insurance company.

Effective January 1, 2021, the statutory deductible for pain and suffering damages has increased from $39,556.53 to $39,754.31. This deductible increases every year subject to annual indexation.

There is also a monetary threshold. This monetary threshold in 2021 totals $132,513.28. This means if you settle your claim above this threshold, you will get 100% of your pain and suffering but if you fall below the threshold the deductible is applicable and you get less.

For example, in a settlement of $130,000, less the deductible of $39,754.31, the total net damage award for pain and suffering would be $90,245.69.

Unfortunately, most Ontarians do not know about the threshold and deductible, and if your claim goes to trial and it is in front of a jury, your lawyer cannot advise the jury of the deductible or the threshold. This means when they are awarding damages for pain and suffering, they don’t know that you will get almost $40,000.00 less if they award less than $132,513.28 for pain and suffering.