Understanding how statutory thresholds impact your pain and suffering compensation 

Recently, the Financial Services Regulatory Authority of Ontario (FSRA) published its 2026 Automobile Insurance Indexation Amounts Guidance. This Guidance, effective January 1, 2026, establishes the amounts related to insurance claims that are subject to indexation for 2026. Indexation is tied to the Canadian Consumer Price Index (CPI) and varies year to year. 

The FSRA Guidance impacts the statutory threshold and deductible for determining “non-pecuniary” tort awards arising from the use or operation of an automobile. Such awards are usually referred to as “general” damages and are intended to compensate a collision victim for pain and suffering, loss of amenities and loss of enjoyment of life. Damages awards below the threshold amount (for 2026, this amount is $159,708.71) will be subject to a deductible. A similar threshold and deductible are applied to successful claims by family members for loss of care, companionship, and guidance under the Family Law Act (FLA). 

What Does This Mean for You? You Could Win Your Case and Receive Zero Compensation for Pain and Suffering 

The government created these thresholds with the stated goal of controlling insurance costs and reducing what they called “minor” injury claims. In theory, the idea was to keep smaller claims out of court so insurance premiums wouldn’t keep rising. 

In reality, these rules create a serious trap for injury victims. Here’s the problem: many legitimate, life-altering injuries result in general damage awards that fall below the $159,708.71 threshold. When that happens, a massive deductible gets applied and in some cases, you could win your case but walk away with nothing for your pain and suffering. 

This system essentially tells injured people: unless your pain and suffering is valued at over $159,708.71, you’ll lose a significant portion of what a jury thinks you deserve or potentially all of it. It doesn’t matter how much your injury has impacted your daily life, your ability to work, or your quality of life. If the number falls below the threshold, the insurance company gets to keep tens of thousands of dollars that a jury awarded to you. 

Who Benefits? Who Loses? 

The insurance industry benefits enormously from these thresholds. They act as a built-in discount on jury awards, allowing insurers to avoid paying full compensation even when a jury has determined an injury victim deserves it. 

Everyday people lose. The thresholds discourage many legitimate claims from ever being pursued because victims and their lawyers know that even a successful trial could result in zero compensation. Meanwhile, insurance companies continue to profit while injured people struggle with ongoing pain, lost wages, and medical expenses. 

The statutory thresholds were created to control the rising cost of personal injury litigation. In practice, they act as a deterrent to many serious personal injury claims and offer a windfall to the insurance companies. Without knowing it, if a jury awards a plaintiff or family member less than the threshold amount for a given year, that award is automatically subject to the applicable deductible amount. This means that a successful claimant could receive ZERO compensation for pain and suffering, or at least be disentitled to a significant portion of their damages on the merits of the case. 

General damages that do not meet the threshold will be subject to a $47,913.01 deductible in 2026, up from $46,790.05 in 2025. FLA damages that do not meet the threshold will be subject to a $23,956.52 deductible, up from $23,395.04 in 2025. 

Example 1: The plaintiff suffered a fractured right wrist and soft-tissue injuries to his lower back, right knee and hip. His back pain resolved after several months of physiotherapy. At trial it was determined that the ongoing right knee and hip impairment was from a pre-existing condition, not a collision-related injury. After the fracture healed, the plaintiff continued to suffer from wrist pain with mild deformity and reduced grip and pinch strength. 

At trial in 2025, the jury found that the plaintiff had suffered a permanent and serious injury to his wrist and awarded $35,000.00 for pain and suffering. However, since the award was lower than the threshold for 2025, and the deductible at that time was $46,790.05, the plaintiff received nothing for pain and suffering. 

Example 2: The plaintiff suffered from chronic neck and shoulder pain with a “frozen” right shoulder, severe daily headaches, depression and anxiety. Despite ongoing treatment, her condition did not improve, and she could not return to work. 

At trial in 2025, the jury accepted that the plaintiff’s chronic pain had impacted every aspect of her life and awarded $140,000.00 for pain and suffering. However, since the award was lower than the threshold of $155,965.54, a deductible of $46,790.05 was applied, reducing her pain and suffering compensation to $93,209.95. 

If you have been seriously injured in a car accident and have questions or concerns about your legal rights, we are pleased to offer a free consultation. 

Put the experts to work for you. Campisi Injury Lawyers, Champions with Heart!