An injured person is not the only one who may benefit from insurance benefits as a result of a settlement or court case. People who help that injured person may also be entitled to payment compensating for economic loss as a result of an injury. According to section 3(7)(e)(B) of the Statutory Accidents Benefits Schedule, an economic loss is incurred, “…as a result of providing the goods or services to the insured person.”
Until recently, this idea of economic loss has remained “fuzzy” for many and its meaning left to the discretion of an arbitrator or the Court. This is why it’s so important to gain the assistance of a personal injury lawyer in these instances, to both understand and protect your rights.
In Henry V. Gore Mutual Insurance Co., the Ontario Court of Appeal decided that the size of an economic loss was irrelevant to the amount of entitlement, but questions about what might constitute such a loss remained unanswered. A recent arbitration decision, however, has given much needed precision and clarification.
The ruling from the Financial Services Commission of Ontario (Futrell v. State Farm Mutual Automobile Insurance Co.) has found that any financial outlay by a service provider can qualify as an economic loss within the meaning of the definition of “incurred.” At issue in this case was whether parking and mileage expenses incurred by a retired husband, in providing needed attendant-care services to his injured wife, counted as an “economic loss”. According to this decision, such expenses would be considered as an “economic loss” and thus covered by the accident benefit scheme of the insurer.
This decision opens the door to reimbursement of expenses by the insurance company to not only the insured, but to family members, housekeepers, and any others who render service or care to the injured person.