There is no deductible for FLA damages where a fatality has occurred

November 04, 2015, Kitchener, Ontario

Posted by: Robert Deutschmann, Personal Injury Lawyer

There have been a number of car accidents involving fatalities over the past 7 days.  2 people died in a car accident just outside of Elmira in Woolwich Township.  Another two people died in a car accident involving multiple cars when one of the cars attempted to pass another and then struck an oncoming car head on.  In the most recent accident, two vehicles collided at the intersection of Spragues Road and Shouldice Road in North Dumfries Township.  These accidents have occurred during periods of good weather so it is difficult to suggest that weather conditions would be a factor.  Many accidents will occur when people fail to take their time, show patience and/or avoid driving in a risky manner or taking risks when driving. 

Under Ontario’s automobile legislation, the insurer for the at-fault party is entitled to a deductible where damages do not exceed a certain level.  The level is called a vanishing threshold.  The deductible had remained the same for several years.  That amount was $30,000.00 for pain and suffering damages that did not exceed $100,000.00.  Recently the Ontario government passed legislation that altered those two amount for inflation.  The deduction has now been increased to $36,540.00.  However, the deductible will not apply to damages in excess of $121,799.00.  These amounts will change every year based on the rate of inflation.  

It should be noted that in the event of a fatality, where someone has died in a car accident, then the deceased’s spouse, children, grandchildren and siblings are entitled to make a claim for losses under the Family Law Act.  The most common claim is for the loss of care, guidance and companionship.  The claim can also include the loss of the contribution to the family income and also the loss of services provided in the home.  With respect to the claim for damages under the Family Law Act, where the party involved in the accident survives, then any claim under the Family Law Act will also be subject to a deductible.  That amount of the deductible was $15,000.00 for any damage award under $50,000.00.   This was also changed recently.  The deductible was increased to $18,270.00, but the deductible vanished where the Family Law Act damages exceed $60,899.00.  However, where the claim arises because the person involved in the car accident has died, then the damages are not subject to any deductible.   The general view is that the surviving family members are punished twice.  The first time obviously is with the passing of a loved one.   The second time is when the insurer then takes a deductible from any damages for the loss of a loved one due to their insured’s negligence.  

About Deutschmann Law

Deutschmann Law serves South-Western Ontario with offices in Kitchener-Waterloo, Cambridge, Woodstock, Brantford, Stratford and Ayr. The law practice of Robert Deutschmann focuses almost exclusively in personal injury and disability insurance matters. For more information, please visit www.deutschmannlaw.com or call us at 1-519-742-7774.

The opinions expressed here, while intended to provide useful information, should not be interpreted as legal recommendations or advice.