Critical Deadlines
- Municipal property accident: serve written notice within 10 days (Municipal Act, s. 44(10))
- Tort claim: commence action within 2 years of accident or discovery (Limitations Act, 2002)
- SABS claim: notify your insurer within 7 days of accident
- SABS: submit OCF-1 Application within 30 days of accident
Ontario's Two-Track System
Every Ontario motor vehicle accident triggers two separate legal tracks simultaneously:
Track 1: SABS (No-Fault)
- From your own insurer
- No fault determination
- Income replacement, rehab, attendant care
- Limited to SABS Schedule amounts
- Dispute goes to LAT (Licence Appeal Tribunal)
Track 2: Tort (Negligence)
- Against at-fault driver/party
- Fault must be proven
- Pain and suffering, income loss, care costs
- Threshold test for general damages
- Action in Ontario Superior Court
Statutory Accident Benefits (SABS) — Key Amounts
| Benefit | Non-Catastrophic | Catastrophic |
|---|---|---|
| Income Replacement | Up to $400/week (70% of gross income) | Up to $400/week or enhanced optional benefits |
| Medical & Rehabilitation | $65,000 (minor injury: $3,500) | $1,000,000 |
| Attendant Care | $36,000 (total with med/rehab: $65,000) | $1,000,000 |
| Caregiver | Not available (unless pre-approved optional) | $250/week first dependant + $50 additional |
| Death Benefit | $25,000 to spouse + $10,000 each dependant | Same |
| Funeral Benefit | Up to $6,000 | Same |
Note: Minor injury guideline (MIG) applies to sprains, strains, and whiplash associated disorders — limited to $3,500 for medical/rehab unless the insured has a pre-existing condition that was documented before the accident.
The Tort Threshold
Ontario's Insurance Act (s. 267.5) creates a threshold that must be met before a plaintiff can claim general damages (pain and suffering) in a motor vehicle accident tort action. The plaintiff must establish:
Permanent serious disfigurement
Visible, significant, and long-lasting physical change — burns, scarring, or amputation are typical examples.
Permanent serious impairment of an important physical, mental, or psychological function
The impairment must be permanent (not just long-lasting), serious (causes substantial inability to perform important tasks), and affect an important function of daily life.
Plaintiffs who do not meet the threshold can still claim economic losses — past and future income loss, medical expenses — but cannot recover pain and suffering damages.
Tort Damages Available
General damages (pain and suffering)
Threshold requirement applies; subject to $44,866.15 deductible (2026 approximate) for claims under $147,843.24
Loss of income (past)
Full recovery less SABS income replacement received
Loss of income (future)
Expert evidence typically required; subject to tax deduction adjustments
Health care expenses (past)
Amounts not covered by SABS or provincial health care
Health care expenses (future)
Expert evidence required; future care cost report typical in serious cases
Family Law Act claims
Spouse, children, parents can claim loss of care, guidance, and companionship
The Personal Injury Process: 7 Steps
1. Immediate notification
Notify your own insurer within 7 days of the accident (or as soon as practicable). Failure to provide timely notice can prejudice SABS claims.
2. Open SABS claim
Submit OCF-1 (Application for Accident Benefits) to your own insurer. The insurer must respond within statutory timeframes. This runs concurrently with the tort claim.
3. Investigate tort liability
Obtain police report, photographs, witness statements, and medical records. Determine fault allocation (Ontario uses modified contributory negligence).
4. Serve notice on municipality (if applicable)
If the accident involved a road or municipal property defect, notice must be served within 10 days under the Municipal Act, s. 44(10). This is a critical and often-missed deadline.
5. File Statement of Claim within 2 years
Commence the tort action within 2 years of the accident or discovery. Most actions are filed in the Ontario Superior Court of Justice.
6. Mediation (mandatory)
Under Rule 24.1, parties in Toronto, Ottawa, and Windsor (and optionally elsewhere) must attend mandatory mediation before trial. Most PI cases settle at or before mediation.
7. Trial or settlement
The vast majority of motor vehicle accident claims settle before trial. Plaintiffs must produce the threshold evidence at discovery or risk having their general damages claim dismissed.
Frequently Asked Questions
What is the limitation period for a personal injury claim in Ontario?
The basic limitation period for tort claims (including motor vehicle accidents) is 2 years from the date the claim was discovered under the Limitations Act, 2002. However, for Statutory Accident Benefits claims, the limitation periods are different and arise at the time of denying or reducing specific benefits. Missing the 2-year tort deadline permanently bars the claim.
What is the threshold test in Ontario motor vehicle accident claims?
Under the Insurance Act, s. 267.5, plaintiffs in Ontario motor vehicle accidents can only sue for general damages (pain and suffering) if they have sustained a permanent, serious disfigurement or a permanent serious impairment of an important physical, mental, or psychological function. This is called the tort threshold. Claims that do not meet the threshold are limited to economic losses only.
What are Statutory Accident Benefits (SABS) in Ontario?
SABS are accident benefits payable from your own automobile insurer regardless of who was at fault. Under the SABS Schedule, you can claim income replacement benefits, medical and rehabilitation benefits, attendant care, caregiver benefits, and death/funeral benefits. SABS apply to all Ontario automobile accidents.
What is catastrophic impairment in Ontario?
Catastrophic impairment (CAT) is a designation under the SABS Schedule that unlocks significantly enhanced benefit limits. Catastrophic impairment includes paraplegia/tetraplegia, loss of limb, brain injury resulting in GCS score of 9 or less, and other severe impairments. CAT accident victims receive up to $1,000,000 for medical/rehab and $1,000,000 for attendant care, versus $65,000 non-CAT.
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