What is a Statutory Threshold and Deductible in all Tort Car Accident Claims against At-Fault Drivers in Canada

Motor vehicle accident claims are governed by the Insurance Act, RSO 1990, c. I.8 (“the Act”), which enumerates the kinds of claims that can be brought against the negligent party and what tests, if any, either party must meet. The injured party, or the plaintiff, who has suffered damages has to surpass the statutory threshold.
This threshold is found in section 267.5(5) of the Act, which holds that the non-pecuniary loss of an injured party must be “(a) permanent serious disfigurement; or (b) permanent serious impairment of an important physical, mental or psychological function.” This section establishes the threshold that must be met in order for a claimant to be able to recover such damages. Moreover, section 267.5(7) of the Act holds that the amounts for non-pecuniary damages will be deducted by the deductible in the regulations which is $30,000.

This means, when we take the threshold and the deductible together, an injured party has the evidentiary burden to establish that they suffered a “permanent serious disfigurement” or “permanent serious impairment of an important physical, mental or psychological function” which must amount to damages in excess of $30,000.