Personal Injury Blog

What You Need To Know About Our Insurance Act And Car Accidents

Many of you do not know that our legal system is prejudiced against plaintiffs who are injured in car accidents.  In response to pressure from the Insurance industry, our Insurance Act has built-in relief for defendant insurance companies from paying damages to plaintiffs.  Briefly, damages under a certain amount are subject to an automatic deductible which stays in the defendant insurer’s pocket.  So, if a jury awards you $70,000 for pain and suffering, you will only receive $40,000.  The jury is not told that this happens.

Grossly unfair though this is, at least for many years the deductible amount was stable at $30,000 off the first $100,000. If your award was more than $100,000, no amount was deducted. For Family Law Act plaintiffs (loved ones, caregivers) the deductible was $15,000 off the first $50,000.

However, as a result of further lobbying by the Insurance industry, in 2015 the Insurance Act was amended to raise these amounts and to tie them to inflation, so that they increase annually.

For 2018, the deductible amount has been increased from $37,385.17 to$37,983.33, deducted from the first $126,610.07 (up from $124,616.21). For Family Law Act plaintiffs, the new deductible is $18,991.67 on awards up to $63,304.51. These amounts represent a greater than 25% increase in under 3 years!In many cases, most or even all of the plaintiffs’ pain and suffering awards are negated by the deductible, because we are not allowed to explain this crooked system to the jury.

This is yet another weapon in the arsenal of the Insurance Defence law firms that they use to intimidate and pressure you into accepting a smaller settlement than your case deserves. It highlights why, more than ever, you have to make sure that you have a committed, aggressive and capable legal team fighting for you.

Rectangle 79 (1) 3cb61dd799b78236322739172e1d220c

Have you been seriously injured in a car accident?

Put our expertise to work for you.

If you or a loved one has been seriously injured, you need a personal injury lawyer who puts client care first and who also knows how to navigate the complex legal system.

Contact Us Now

Subscribe to our newsletter

Get free insights delivered right to your inbox

 

Give us your email address and we’ll send you the latest information on updates to the legal and insurance system and learn how you can make the best recovery possible.

image 13 (1)

ACCIDENT BENEFITS UPDATE: AVIVA BEATS DEAD HORSE... TWICE!

In two recent decisions of the Licence Appeal Tribunal, released on consecutive days, Aviva mounted spirited attempts to broaden the scope of accident benefits claims under the Minor Injury Guideline or MIG. N.R. and Aviva, 2019 CanLII 51313, and the Reconsideration Decision in G.S. and Aviva,...

Accident Benefits Update: Proving Chronic Pain? - a Cautionary Tale

In S.K. v. Aviva Insurance Canada (2019 CanLII 126203) recent Reconsideration Hearing before the Licence Appeal Tribunal (LAT), the applicant S.K. argued that the LAT had erred in fact and at law by finding that her injuries were appropriately treated under the Minor Injury Guideline (MIG). As a...

Accident Benefits Update: Shades of Grey between Moderate and Marked Impairment

K.S. andTD Home and Auto Insurance Company (2019 CanLII 22189), a recent decision by the Licence Appeal Tribunal (LAT), considered the fine line for establishing catastrophic impairment (catastrophic) under s.3(2)(f) of the Statutory Accident Benefits Schedule or SABS (prior to June 2016), which...

More Posts