Any victim of a personal injury will be happy to see their claim settle. After all, a fair settlement of your personal injury case means that you and the other party will avoid the expense and time of a court trial and other costly steps needed to ensure the completion of a contested personal injury claim.
Unfortunately, many victims of personal injury aren’t familiar with the specific steps for successful settlement negotiations or what happens after the involved parties agree on a settlement amount. That’s why you need an experienced personal injury lawyer to ensure the settlement funds are distributed correctly and your claim can be closed.
Personal Injury Claims
If you suffered injuries due to someone else’s negligence or wrongdoing, you can legally seek personal injury compensation through a lawsuit in accordance with the personal injury law. In Ontario, personal injury lawsuits often arise from different situations such as slip and fall accidents, car accidents, medical malpractice, product liability, and more.
To successfully secure compensation for the damages you suffered, you must prove that the other party owed you a duty of care, they breached it, and caused your injury. You must file your personal injury claim within the specified limitation period, often two years, though some cases require quicker notice. Work with a personal injury lawyer to avoid missing critical deadlines.
In addition, you need credible evidence, such as medical records, accident reports, and witness statements, to support your claim. While many cases settle out of court, having an experienced lawyer improves your chances of a fair outcome.
How Are Personal Injury Settlement Amounts Calculated?
Over 90% of personal injury claims in Ontario are settled before a court trial. However, your willingness to settle a claim shouldn’t force you to accept a personal injury settlement amount that’s below the damages you suffered. You need a knowledgeable lawyer to handle your financial compensation calculations.
The value of a personal injury settlement in Ontario depends on the type and severity of your injuries, which should be supported by medical and factual evidence. Courts consider two main categories of damages, which include pecuniary and non-pecuniary. Pecuniary damages are financial losses with a set value, such as medical bills, rehabilitation costs, and lost income (wages lost). Non-pecuniary damages cover pain, suffering, and loss of enjoyment of life.
In Canada, the upper limit of non-pecuniary damages is capped at $340,000 and is reserved for severe, permanent injuries like paralysis or major disfigurement. For auto accidents, you must meet specific legal thresholds, such as permanent disfigurement, death, or permanent impairment, to qualify for non-pecuniary damages. Once both damage types are calculated, they are combined to determine your total settlement amount.
Factors that Affect Personal Injury Settlement Amounts
During the calculation of your personal injury settlement amount, several factors will influence the final compensation amount. Personal injury lawyers and insurance companies consider different elements to ensure you (the injured individual) get fair compensation that covers economic and non-economic damages. These elements include:
Severity of Your Injury
Many serious injuries, like traumatic brain injury, generally lead to higher settlement amounts than minor injuries. For instance, catastrophic injuries (like spinal cord injury), permanent disabilities, or conditions that cause chronic pain or require long-term medical care significantly increase compensation amounts.
Impact on Your Daily Life
If an injury affects your ability to work, perform household responsibilities, or enjoy hobbies, it should be reflected in your claim settlement value. After all, chronic pain, mental anguish, and reduced quality of life are also considered when calculating compensation.
Pre-existing Health Conditions
Existing health issues can complicate the calculation of your personal injury settlement amount. Insurers may argue that the accident was not the sole cause of the current injuries. A skilled personal injury lawyer can help gather and present credible evidence to show how the accident caused new injuries or worsened the pre-existing condition.
Liability and Fault for the Accident
Settlement amounts are higher when the other party is entirely at fault for the incident that caused your injuries. If you (the injured person) share responsibility or fault, the compensation is reduced according to your percentage of fault.
Insurance Policy Limits
The at-fault party’s insurance coverage plays a role in the final compensation amount. When liability is clear, insurers may offer settlements close to insurance policy limits to avoid trial. Let an experienced accident lawyer help assess whether the insurer’s settlement offer is fair before you accept it.
Long-Term Medical Care and Future Costs
Severe injuries often require ongoing care, such as physical therapy, medical treatment, surgeries, or medical equipment. If the injury prevents you from securing future employment or limits your earning potential, this loss must be factored into the final personal injury settlement amount.
Types of Damages in Personal Injury Claims
As a personal injury victim, you can legally claim different damages to compensate for the harm you suffered. Note that courts in Ontario can award both compensatory damages and non-compensatory damages, such as punitive and aggravated damages.
Pecuniary Damages
Pecuniary damages, also called economic damages, cover measurable financial losses linked to your injury. These include medical expenses, rehabilitation costs, lost wages, reduced future earnings, and property damage. Out-of-pocket expenses such as travel, medication, or assistive devices also qualify. Accurate records such as receipts, pay stubs, and invoices can help calculate your pecuniary damages.
Non-Pecuniary Damages
Also called general damages, non-pecuniary damages compensate for the emotional and psychological effects of an injury. These may include pain and suffering damages, loss of enjoyment of life, emotional distress, or loss of companionship.
Unlike economic losses, these damages are harder to quantify and often rely on testimony, medical assessments, and expert opinions. They reflect the broader impact of car accidents and other causes of personal injuries on daily life and long-term well-being.
Punitive Damages
Punitive damages are awarded not to compensate the victim, but to punish the defendant for severe misconduct. These non-compensatory damages target behaviour that is malicious, reckless, or deliberately harmful, depending on the nature of the case involved.
In Ontario, such personal injury awards are rare and reserved for exceptional cases. Unlike compensatory damages, the additional financial penalties could help discourage similar conduct in the future and reinforce legal accountability.
The Role of a Personal Injury Lawyer
If you’re seeking compensation in a personal injury claim, don’t accept any settlement offer without consulting your lawyer first. You could be eligible for higher compensation than what the insurance provider is offering. Here’s how an experienced motor vehicle accident lawyer can help.
Calculating Injury Settlement Amounts
After an injury-causing accident, expenses can add up quickly. That means treatment costs, lost income, and future care needs should be factored into your claim. A personal injury lawyer can help secure fair compensation by thoroughly assessing your losses. This includes past and future medical expenses, lost wages, property damage, and pain and suffering damages.
Your lawyer can also account for ongoing care, rehabilitation costs, and other financial costs that may arise in the future. By considering both current and future expenses, your lawyer can ensure your settlement amount reflects the full scope of your damages and protects your long-term financial stability.
Gathering Evidence for Personal Injury Claims
Strong evidence is the foundation of a successful personal injury case. A skilled lawyer can evaluate your case and identify the evidence needed to support it. This may include medical records, photographs of the accident scene, accident reports, witness statements, and physical evidence from the accident scene.
The lawyer can coordinate with medical experts, investigators, and other professionals to build a compelling case. Each piece of evidence is analyzed to strengthen your position and counter any challenges from the opposing party. Working with an experienced lawyer may help you (the injured party) get the accident benefits you are entitled to and compensation from the at-fault party.
Determining Liability for Personal Injuries
Establishing liability is often one of the most complex parts of a personal injury case. Your lawyer or legal team can help assess whether contributory negligence, statutory liability, or product liability applies.
The lawyer’s goal is to prove who is legally responsible and the extent of the damages suffered. This process may involve expert testimony, accident reconstruction, and careful review of legal precedents, especially in the Supreme Court.
Understanding Canadian tort law is essential, as liability disputes can significantly affect settlement outcomes. A skilled lawyer can present strong arguments and evidence to secure fair compensation for you while protecting your legal rights.
Contact Our Lawyers to Maximize Your Compensation
If you have suffered an injury in Ontario, seeking reliable legal help can make a significant difference in your case settlement. Knowledgeable vehicle accident lawyers understand how to calculate your losses, gather credible evidence to support your case, and establish liability.
Schedule a free consultation and discuss your case with a personal injury lawyer.
