You may have heard people talking about “the $2,500.00 deductible” when they are involved in an accident. But what does it mean, and where does it come from?
Under the Automobile Insurance Act there is a series of regulations, one of which is the Automobile Insurance Regulations. This regulation outlines that claims of pain and suffering shall be reduced by $2,500.00. The regulation refers to pain and suffering as non-pecuniary loss, which essentially means that it is a loss for which an exact quantum cannot be determined. Non-pecuniary loss and pecuniary losses are a bit different.
Imagine if you cut your finger. The pain and suffering you experience will likely be different from my experience. This would be a non-pecuniary loss, which means that there is no set dollar amount for compensation. But if you and I both go to the local pharmacy and buy bandages, we both have the same loss in terms of out of pocket payments. These quantifiable amounts are referred to as pecuniary losses in the legislation.
The guiding legislation in Newfoundland & Labrador also sets out other deductibles that sometimes apply to motor vehicle accidents, for example, failing to wear a seatbelt results in a reduction of 25% unless specific proof is provided.
It can be complicated, which is why you need a dedicated team on your side to guide you through the process. We’ve been there before. Make it our fight, and our experience will guide you through it too.