The Financial Services Regulatory Authority of Ontario (FSRAO) recently announced a change in the general damages deductible for individuals injured in car accidents in Ontario, effective January 1, 2024. If the assessment is $153,509.39 or less, the deductible will be $46,053.20, marking an increase of approximately $1700 compared to the 2023 deductible, or a decrease of $1700 for most car accident victims.
In the upcoming year, the Family Law Act damages for family members of Motor Vehicle Accident (MVA) victims will face a deductible of $23,026.61 if assessed at $76,754.06 or less.
It’s important to note that these deductibles directly favor insurers, as they are entitled, by statute, to reduce the compensation paid to accident victims by the deductible amount, unless the general or Family Law Act damages exceed the specified threshold amounts. Deductibles play a significant role in negotiating settlements for personal injury claims arising from MVAs.
Interestingly, during trials of personal injury cases resulting from MVAs in Ontario, juries are not informed about these deductibles. Consequently, insurers often prefer jury trials for these cases, strategically increasing risk for car accident victims.
It’s worth mentioning that deductibles do not apply to MVA claims when family members of a person killed in a car accident file claims under the Family Law Act.
To clarify, the deductibles outlined above exclusively pertain to claims arising from motor vehicle accidents and do not impact any other type of personal injury claim. Understanding these changes is crucial for individuals navigating the legal landscape of motor vehicle accident-related compensation in Ontario.
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