Defining Permanent Serious Impairment or Injuries in a Personal Injury Case

Published: August 9, 2021 | Last Reviewed: October 14, 2026

Not every injury from a car accident heals the same way. Some fade with treatment and time. Others leave a person permanently changed, and it’s the second kind that Ontario law treats very differently from the first.

That’s because a plaintiff can’t automatically recover pain and suffering or other non-pecuniary damages just because an accident hurt them. The law sets a threshold, and only impairments that are permanent, serious, and affect an important physical, mental, or psychological function qualify, with even those awards subject to a statutory deductible once they do.

That threshold was put to the test in 2021, when a defendant in an Ontario Superior Court of Justice case argued that the plaintiff’s injuries simply weren’t permanent enough to count (see: Persaud v. Bascom, 2021 ONSC 4398).

Keep reading to learn what the threshold actually requires, how courts decide whether an impairment is permanent, important, and serious, and what Persaud v. Bascom shows about how that test plays out in practice.

Key Takeaways

• In Ontario motor vehicle claims, a plaintiff generally must show a permanent serious impairment of an important physical, mental, or psychological function, or a permanent serious disfigurement, to recover non-pecuniary damages such as pain and suffering.
• Courts look at whether the impairment is permanent, whether the affected function is important, and whether the impairment is serious, with the plaintiff carrying the burden of proving each part of the test.
• Meeting the threshold does not necessarily mean the plaintiff receives the full amount awarded. In 2026, statutory deductibles can still reduce non-pecuniary damages unless the award exceeds the applicable monetary threshold.
• Courts consider the real-world impact of the injury, including effects on employment, career training, personal care, daily activities, pain, mobility and sleep.
• Medical evidence, treatment records and observations from family members or others can help show how the impairment has affected the injured person’s functioning over time.

What Is the Permanent Serious Impairment Threshold in Ontario?

Section 267.5(5) of Ontario’s Insurance Act sets out the rule: a defendant in a personal injury claim arising from a motor vehicle collision is only liable for non-pecuniary damages if the plaintiff sustained a permanent, serious disfigurement or a permanent, serious impairment of an important physical, mental, or psychological function.

To determine whether a plaintiff is entitled to pursue these damages, courts apply a three-part test enumerated in Meyer v. Bright. The following sequential questions must be answered in the affirmative:

• Has the injured party sustained permanent impairment of a physical, mental or psychological function?
• If yes, is the permanently impaired bodily function an important one?
• If yes, is the bodily function’s impairment serious?

This test can be ambiguous for a few reasons.

The plaintiff carries the burden of proof and must present evidence showing that their injuries meet each requirement. To do so, the plaintiff may be required to present expert testimony from a physician regarding the nature and permanence of their impairment and the specific bodily function that has been impaired.

Meeting this threshold only clears the first hurdle, though. Even where a court finds that a plaintiff’s injuries qualify, their award for non-pecuniary damages is still reduced by a statutory deductible, unless the award exceeds a separate monetary threshold.

Both figures are published annually by the Financial Services Regulatory Authority of Ontario (FSRA) and adjusted for inflation. As of January 1, 2026:

• General damages (pain and suffering): a deductible of $47,913.01 applies to any award below the $159,708.71 monetary threshold.
• Family Law Act claims (for loss of guidance, care, and companionship): a deductible of $23,956.52 applies to any award below the $79,853.70 monetary threshold.

In practice, this means a plaintiff who clears the Meyer v. Bright test and is awarded, say, $100,000 in general damages would still have the deductible subtracted, since $100,000 falls below the $159,708.71 threshold, leaving roughly $52,000. The deductible does not apply if the award exceeds the monetary threshold, or if the claim involves a fatality.

How Do Courts Decide if an Impairment Is Permanent, Important, and Serious?

Ontario’s Insurance Act and regulations set out the factors used to determine whether an impairment meets the threshold for a tort claim.

An impairment is considered permanent if it has been continuous since the accident, is expected to continue into the indefinite future, and is not expected to substantially improve.

This is different from a catastrophic impairment designation under the Statutory Accident Benefits Schedule, which uses separate criteria and determines access to accident benefits rather than damages in a tort claim.

Whether an impaired function is important depends on the role it plays in the injured person’s life. Courts may consider how necessary that function is to the person’s employment, career training, personal care, or usual activities of daily living.

An impairment is considered serious if it substantially interferes with the person’s ability to continue their regular employment despite reasonable accommodation, prevents them from continuing necessary career training, or substantially interferes with most of their usual activities of daily living.

Seriousness is therefore not determined by the diagnosis alone. Courts look at the real-world effect of the impairment. A person may still be able to work or complete everyday tasks, for example, but experience significant pain, reduced mobility, sleep disruption, or other limitations that materially affect how those activities are performed.

Medical evidence is an important part of that assessment. Physicians may provide evidence about the nature and permanence of the impairment and its effect on the injured person’s functioning. Evidence from family members or others who have observed changes in the person’s abilities and daily activities may also help demonstrate how the impairment has affected their life.

What Did Persaud v. Bascom Show About the Threshold?

In Persaud v. Bascom, the defendant brought a motion arguing that the plaintiff’s car accident injuries weren’t serious enough to meet the threshold. The Court dismissed the defendant’s motion. Because the defendant conceded that the plaintiff’s impairment was permanent, the Court focused on whether it was “important” and “serious.” It found that the plaintiff’s injuries kept him from everyday activities that mattered to him, including housekeeping, home maintenance, playing with his grandchildren, going to the park, and walking in his neighbourhood. His medical expert testified that his pain continued despite daily medication and extensive therapy. That pain limited many of the activities he did before the accident, reduced his driving, and led him to withdraw from other people. His wife, daughter and son-in-law confirmed these limitations. His wife estimated that his overall functioning fell from about 60% before the accident to 30–40% after, a drop the Court called “significant.” The plaintiff had significant health problems before the accident, but the Court still found the threshold met because of how much his day-to-day functioning declined after the collision.

The case shows how the statutory definitions play out in practice and what kind of evidence courts look for. Medical opinion evidence carried weight, and so did testimony from family members who saw the changes firsthand. The case also shows why accident victims should keep their medical records, attend prescribed appointments, follow their plan of care, track their pain levels, and keep notes on which daily tasks they can and can’t do. This is the evidence that ultimately supports a threshold claim.

Contact The Ontario Personal Injury Lawyers At Preszler Injury Lawyers

If you were injured in a motor vehicle accident and are unsure whether your injuries meet Ontario’s permanent serious impairment threshold, getting legal advice can help you understand what evidence may be required and what damages may be available.

These claims often depend on more than the diagnosis itself. Medical evidence, the long-term effect of the impairment, and the way your injuries interfere with work, training, and daily activities can all play an important role in determining whether the threshold is met.

Preszler Injury Lawyers has decades of experience representing people injured in motor vehicle accidents and other personal injury claims. If you would like to discuss your situation, call 1-888-608-2111 or complete our online contact form to request a free consultation.

We’re here to help.