Ontario’s provinical government has introduced legislation to reduce the prejudgment interest rate for pain and suffering damages in car acidents from 5% to 1.3%. This is yet another step that will have the effect of taking money from innocent accident victims and putting it into the pockets of large insurance companies.
In our view, if the pre-judgment interest rate is lowered there will be even less incentive for insurers to deal with motor vehicle accident claims promptly. Instead, they will choose to delay settlement and keep money as long as possible and continue to make money from investments. Insurers already make use of their resources to make the litigation process slow, expensive and painful for suffering accident victims. Big insurance companies and their lawyers understand that many plaintiffs will be tempted to settle for less than their claims are worth in order to avoid more delay and stress.
These amendments are being made without any consultation with the legal profession, or any awareness of the effect they will have on accident victims and their access to justice.
You can do a postal code search here to identify your MPP: http://www.ontla.on.ca/lao/en/members/
Our MPPs will only get the message if we send it. Find your MPP and let him or her know that innocent accident victims in Ontario deserve better.
At McNally Gervan LLP we represent the interests of innocent accident victims. If you have a question about your rights as an accident victim please contact us.