Understanding the Statutory Threshold and Statutory Deductible in Motor Vehicle Claims

Last week, we discussed how the court calculates damages for pain and suffering, or general damages. In most personal injury cases, this is how a victim’s compensation will be decided, in addition to any special damages they can prove through evidence.

In motor vehicle accident claims, however, Ontario law operates to limit a victim’s compensation where their injuries do not meet a certain “statutory threshold” set out in legislation. A victim’s compensation is also subject to a “statutory deductible” which is applied to the court’s final assessment of damages.

What does the statutory threshold mean in motor vehicle accident claims?

In order to obtain any compensation for pain and suffering, a motor vehicle accident victim must show that their injuries are permanent and serious.

If your injuries do not meet the threshold test, you also cannot claim damages for medical and rehabilitation expenses associated with those injures.

What is the statutory deductible and how is it applied?

Even where a plaintiff shows that they have suffered a permanent and serious injury, and receives an award of general damages, this amount may be reduced by a deductible amount established by legislation, sometimes called the statutory deductible.

In cases where general damages are assessed below $124,616.21, a deductible of $37,385.17 is applied. This means that if the court awards you $100,000 for pain and suffering, your actual damages will be $63,614.83.

These amounts are set for 2017, and increase every year with inflation.

Personal Injury Lawyers for Motor Vehicle Accident Claims

If you have been injured in a motor vehicle accident and are not sure whether your injuries meet the “serious and permanent” threshold, our dedicated personal injury team can review your case with you to determine whether you should advance a tort claim.

Even if your injuries do not meet the threshold, our lawyers can provide advice regarding your eligibility for accident benefits, which are available if you are injured in a motor vehicle accident.

Contact us online or call 416-847-3580 to make an appointment. We can meet new clients at convenient locations in Toronto.