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ARTICLE · 29 NOVEMBER 2021

The Threshold Test & Statutory Deductible In Motor Vehicle Accident Claims

Devry Smith Frank LLP
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In every motor vehicle accident, an individual may claim general damages. General damages is commonly referred to as non-pecuniary losses, non-economic damages, or quite simply damages for pain and suffering.

CanadaLitigation, Mediation & Arbitration
Devry Smith Frank LLP
Devry Smith Frank LLP
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Defining General Damages

In every motor vehicle accident, an individual may claim general damages. General damages is commonly referred to as non-pecuniary losses, non-economic damages, or quite simply damages for pain and suffering. These are damages that are not economic in nature, yet still, affect a person's lifestyle and quality of life. They cannot be calculated or quantified like lost income or medical bills, rather they compensate for things like pain and suffering, loss of quality of life, and emotional or psychological distress.

The Threshold

In Ontario, in order for an individual to recover general damages (i.e. damages for pain and suffering, also known as non-pecuniary losses) in a motor vehicle accident lawsuit, the individual must first satisfy the "Threshold Test" 1 by proving on a balance of probabilities that their injuries are both permanent and serious:

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