The Ontario Court of Appeal (OCA) has confirmed that changes made to the Insurance Act in 2015 can apply to older matters.
According to Law Times, the OCA decided that amendments to the Act introduced in 2015 would apply to two pre-2015 car accident cases.
This means that insurance companies would pay a reduced rate on prejudgment interest for non-financial losses to plaintiffs in cases before and after the amendment.
What Amendment Was Applied?
The amendment reduced prejudgement interest. The rate was changed from 5 per cent to instead match the current bank rate at the start of the proceeding, which is generally a lower rate.
Regarding car accident cases, this affects the amounts car insurance companies would pay the plaintiff to cover losses such as bodily injury or death resulting from a car accident.
What This Means For Car Accident Claims
Whether or not this is beneficial to the defendant or plaintiff depends on the lawyer.
In one of the cases, the defending lawyers stated the reduced rate is a good idea because it would reduce delays in proceedings since there’s very little financial gain for the plaintiff on prejudgment values.
On the flipside, one of the plaintiff’s lawyers involved said the reduced interest rate makes it harder to reach an effective settlement before going to trial.
Neither of the parties involved has said whether or not they would appeal this decision.
It’s important to make sure you receive proper compensation for the damage and injuries sustained in a car accident. As some of the damage, such as bodily harm or death, is hard to quantify, it’s best advised to consult a personal injury law firm. They can help you make sure your rights and interests are protected as you pursue an outcome that is beneficial to you.
