Demystifying Compensation for Past Loss of Income and Earning Capacity After a Car Accident in Ontario
Navigating the aftermath of a car accident in Ontario involves understanding various legal aspects, especially when it comes to claiming compensation for lost income and diminished earning capacity. A closer look at Section 267.5(1) of the Ontario Insurance Act can shed light on the protections and limitations it places on liability for these types of damages. Let’s break down this section to clarify what individuals can actually recover, debunking common misconceptions along the way.
Understanding Section 267.5(1)
This section of the Ontario Insurance Act is designed to limit the liability for damages related to income loss and loss of earning capacity resulting from bodily injury or death due to the use or operation of an automobile. Specifically, it outlines three key limitations:
Applying the Provisions with Examples
Example 1: Short-term Income Loss
Suppose you earn $100,000 annually and are injured in a car accident, preventing you from working for two weeks. Under Section 267.5(1):
Example 2: Long-term Reduction in Earning Capacity
Imagine your injuries result in a long-term reduction in your capacity to work, decreasing your salary from $100,000 to $75,000 annually:
According to the act, you're entitled to recover 70% of this lost earning capacity, amounting to $17,500 annually, until the trial verdict or settlement.
Section 267.5(1) of the Ontario Insurance Act doesn't preclude individuals from recovering compensation for lost income or diminished earning capacity unless the loss exceeds 70%. Rather, it specifies that 70% of such losses are compensable, subject to the act's provisions. It is important to note that the calculations above are provided as a simple example for demostration purposes only. The actual income loss claimed is also subject to regulation, which would impact the calculation and the amount recoverable by the injured party. Understanding these nuances is crucial for anyone involved in a car accident in Ontario, ensuring they are fully aware of their rights and potential compensation. If navigating these legal waters feels overwhelming, consulting with an experienced Ontario car accident lawyer can provide clarity and support through the process, ensuring that your claims are accurately addressed and maximized.
Note: This article is for informational purposes only and should not be construed as legal advice. Individuals seeking legal counsel should consult with a qualified lawyer.
Andrew Iacobelli is an experienced personal injury lawyer who established Iacobelli Law Firm with offices located in Ontario, Canada and Florida, U.S.A. Andrew restricts his practice to the representation of personal injury victims in claims involving serious injuries, Catastrophic Injuries, and wrongful death in Canada and the United States. Andrew is a lifetime member of the Million Dollar Advocates Forum, and the author of "Are You a Canadian Injured in the United States? Claim the Damages and Insurance Coverage the Right Way".
Andrew Iacobelli is an Ontario lawyer that restricts his practice to representing personal injury victims and their families. Andrew is the founder of Iacobelli Law Firm.
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