Many people in Ontario assume that if they are injured in a car accident and successfully sue the at-fault driver, they will receive the full amount a court or jury awards.
In reality, Ontario’s auto insurance laws include rules that can significantly reduce compensation for pain and suffering. Understanding these rules — and how they affect the value of a claim — is one of the reasons why many injured people choose to retain a personal injury lawyer.
Key Limitations Under the Insurance Act
Two key limitations exist under the Insurance Act (Ontario): the “serious injury threshold” and a statutory deductible. Both rules apply to most lawsuits arising from motor vehicle accidents and can greatly affect how much compensation an injured person ultimately receives. Because these rules involve legal and medical interpretation, navigating them without legal guidance can be challenging.
