At Bergeron Clifford, we understand the financial strain that personal injury victims often endure. For those injured in motor vehicle accidents, navigating Ontario’s Insurance Act can feel overwhelming. One critical but underutilized provision in the Act is Section 258.5, which governs advance payments from insurers. Here is what you need to know about this legal tool, how it can help you, and how our firm can advocate for your rights.

What Are Advance Payments?

Under Section 258.5(2) of the Insurance Act, if an insurer admits liability for all or part of a claim for income loss, they must make payments to the injured party before the full claim is settled. This can provide much-needed financial relief for victims struggling with lost income, medical bills, and ongoing rehabilitation costs.

However, these payments are not automatic. They hinge on an insurer’s willingness to admit liability – something insurers are often reluctant to do. This reluctance underscores the importance of having an experienced legal team like Bergeron Clifford in your corner.

Why Insurers Avoid Advance Payments

Insurers typically hesitate to admit liability early in the claims process. Admissions often come with conditions, such as a cap on claims to the policy limits. For those with significant injuries or claims exceeding these limits, this approach leaves victims without the financial support they need.

Even when insurers admit liability, they may still deny advance payment requests. While frustrating, these denials can have strategic value in your case, as they may bolster claims for interest penalties or demonstrate the insurer’s unwillingness to assist in mitigating your financial hardship.

How Advance Payments Can Strengthen Your Case

Requesting an advance payment – even if denied – can serve multiple purposes:

1. Demonstrating Financial Hardship: Evidence of financial strain can support higher cost or interest awards at trial.
2. Highlighting Mitigation Efforts: Requests for payments covering vocational training or continued treatment can demonstrate your commitment to reducing losses.
3. Building Leverage for Negotiation: Insurers facing potential interest or cost penalties may be more inclined to settle expeditiously.

How Bergeron Clifford Advocates for You

At Bergeron Clifford, we take a proactive approach to ensure insurers meet their obligations. Here is how we leverage Section 258.5 for your benefit:

• Strategic Requests: We submit carefully documented requests for advance payments that highlight the insurer’s duty to act in good faith.
• Paper Trail Creation: By meticulously documenting every interaction, we create a compelling record that can be used to pursue additional cost or interest awards if the insurer fails to comply.
• Court Representation: If necessary, we take insurers to task in court for failing to meet their statutory obligations, ensuring you receive the compensation you deserve.

Why Choose Bergeron Clifford?

Navigating personal injury claims in Ontario requires a deep understanding of the law and a firm committed to fighting for your best interests. At Bergeron Clifford, our decades of experience and client-focused approach mean you can trust us to pursue every available legal avenue to maximize your compensation.

If you have been injured in a motor vehicle accident, do not wait for financial relief. Contact us today to learn how we can use the tools provided under the Insurance Act – including Section 258.5 – to secure the support you need.

At Bergeron Clifford, your recovery is our priority. Contact us for a free consultation and let us help you get back on your feet.