Insurance deductible for pain and suffering nears eye-popping $40,000

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Kotak said there are several reasons why this deductible is not known, including legal rules prohibiting a jury from being informed of this amount.

“When a jury thinks pain and suffering is worth $ 35,000, they don’t know the person is getting zero and they can’t be informed,” he added. “So I think it’s a secret for juries that decide on awards. It is a secret to the general public that pays premiums. And it’s a secret, I think, from most politicians who don’t know about it. “

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To make a claim for pain and suffering, drivers must demonstrate that they have suffered a permanent and serious injury that affects the quality of the rest of the life.

The deductible was first introduced in 1993 in order to stamp out minor claims for damages. In turn, a no-fault conflict of laws law enabled insurance companies to offer more generous benefits for injury treatment and income replacement.

The initial deductible was set at $ 10,000 for any premium up to $ 100,000 and would be waived above that amount. It then rose 50% to $ 15,000 in 1996.

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In October 2003, the deductible doubled to $ 30,000 and stayed there until a new formula came into effect in August 2015 under the Liberal government of Kathleen Wynne to further reduce costs for insurance companies.

At that point, the deductible rose 22% to $ 36,540.

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And since 2015 the deductible has had to increase with the inflation rate.

Kotak questions how benefits have remained flat since the late 1990s, noting that injury premiums have not increased with inflation.

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