After a serious accident, the financial fallout can be as devastating as the physical injuries themselves. Lost wages, mounting therapy and medical bills, and the cost of ongoing care can add up quickly, creating stress at a time when you should be focused on recovery.
Understanding what qualifies as economic loss — and how it’s defined legally — is crucial to ensuring you receive full compensation for your injuries.
In this guide, we’ll explain the pecuniary definition in personal injury law, break down what counts as economic damages, and clarify the important distinction between pecuniary vs non-pecuniary loss in Ontario injury claims.
Related: Will I Be Assigned a Care Team for My Permanent Disabilities After Filing a Claim for an Accident?
What Is the Pecuniary Definition in Personal Injury Law?
Breaking Down Pecuniary Loss Meaning
The term “pecuniary” simply means “relating to money.” In personal injury law, pecuniary loss meaning refers to economic damages that have a clear dollar value — losses that can be calculated, documented, and proven with financial records and expert testimony.
Think of pecuniary losses as anything that directly impacts your wallet or bank account. These are tangible, measurable financial consequences of your injury. If you can attach a specific cost or dollar amount to it, it’s likely a pecuniary loss.
Common examples include medical expenses, lost income, rehabilitation costs, home modifications, and future care needs. These economic damages explained represent the financial burden your injury has placed on you and your family.
Why “Pecuniary” Matters in Your Claim
Understanding the pecuniary definition is essential because Ontario law treats economic losses differently than non-economic losses. Pecuniary damages are generally easier to prove because they’re supported by bills, pay stubs, receipts, and expert projections. Courts look for concrete evidence when awarding these damages.
More importantly, there’s no legal cap on pecuniary damages in Ontario. While non-pecuniary damages (for pain and suffering) are subject to a maximum amount established by the Supreme Court of Canada, your economic losses can be claimed in full, regardless of how high they climb.
For someone with a catastrophic injury requiring decades of care, this distinction means the difference between adequate compensation and financial devastation.
The Legal Framework in Ontario
Ontario’s personal injury compensation system, particularly for motor vehicle accidents, involves both tort claims (lawsuits against at-fault parties) and statutory accident benefits through your own insurance company.
Both systems recognize and compensate pecuniary losses, though they operate differently:
- Accident benefits provide immediate income replacement, medical/rehabilitation coverage, and other benefits regardless of fault
- Tort claims seek full compensation for all losses from the at-fault party, including economic damages that exceed accident benefits
At Oatley Vigmond, our team includes former insurance adjusters who understand accident benefits intimately, ensuring our clients receive every dollar they are entitled to from their accident benefits claim.
Types of Economic Damages Explained After an Accident
Lost Income and Earning Capacity
One of the most significant components of accident economic loss is the income you’ve lost — both past and future. This includes:
Past lost income: Wages, salary, bonuses, and benefits you would have earned from the accident date until your claim settles or goes to trial. This is relatively straightforward to calculate using employment records, tax returns, and pay stubs. In car accident cases, there are limitations imposed by legislation on the calculation of past income loss claims.
Future lost earning capacity: This is more complex. If your injuries prevent you from returning to your previous career, force you to work part-time instead of full-time, or require you to take a lower-paying position, you may be entitled to compensation for the difference. This calculation projects your earnings over your expected working life, accounting for promotions you likely would have received, cost of living increases, and the impact of your specific limitations.
Even if you weren’t employed at the time of the accident, you may still claim for loss of earning capacity if the injury affects your ability to work in the future.
Medical Expenses and Rehabilitation Costs
Every medical expense arising from your injury qualifies as pecuniary loss, including:
- Any medical bills not covered by OHIP
- Prescription medications
- Physiotherapy, occupational therapy, and other rehabilitation services
- Psychological counseling and mental health treatment
- Medical equipment like wheelchairs, walkers, or orthotic devices
- Travel costs to and from medical appointments
Home Modifications and Equipment Needs
Serious injuries often require substantial changes to your living environment. These modifications are significant pecuniary losses that must be factored into your claim:
- Wheelchair ramps and widened doorways
- Stairlifts or residential elevators
- Bathroom renovations (roll-in showers, grab bars, accessible fixtures)
- Kitchen modifications for accessibility
- Vehicle modifications for adaptive driving equipment
- Smart home technology to increase independence
For catastrophic injuries, these costs can easily reach six figures. Expert occupational therapists assess your needs and provide cost estimates that become part of your economic damages claim.
Future Care Costs
Perhaps the most substantial component of pecuniary damages in catastrophic injury cases is the cost of future care. This encompasses:
- Ongoing treatments and therapies
- Personal support workers and attendant care
- Nursing care
- Housekeeping and home maintenance services you can no longer perform
- Future surgeries or medical interventions
- Replacement of medical equipment over time
Calculating these costs requires life care planning experts who project your needs over your lifetime and economists who determine the present value of those future expenses. The Canadian Life and Health Insurance Association provides resources on understanding long-term care costs that factor into these calculations.
Pecuniary vs Non-Pecuniary Loss: Understanding the Difference
What Non-Pecuniary Loss Covers
While pecuniary losses are financial and measurable, non-pecuniary losses compensate for intangible harms that don’t have inherent dollar values. These include:
- Pain and suffering
- Loss of enjoyment of life
- Emotional distress and mental anguish
- Loss of companionship or consortium
- Reduced quality of life
The distinction between pecuniary vs non-pecuniary loss is fundamental in Ontario personal injury law. Non-pecuniary damages acknowledge that serious injuries affect more than your bank account — they diminish your ability to experience joy, pursue hobbies, maintain relationships, and live life as you did before the accident.
How Courts Calculate Each Type Differently
The calculation methods for these two types of damages couldn’t be more different:
Pecuniary losses are calculated by:
- Adding up actual expenses already incurred
- Projecting future costs based on expert evidence
- Using economic formulas to determine present value
- Relying on concrete documentation and factual evidence
Non-pecuniary losses are calculated by:
- Considering the severity and permanence of your injuries
- Assessing how the injury affects your specific life circumstances
- Applying judicial discretion within the legal framework
According to the Supreme Court of Canada’s trilogy of cases from 1978, non-pecuniary damages are capped (currently around $465,000, adjusted for inflation), while pecuniary damages have no limit.
Why Both Matter in Personal Injury Compensation
A comprehensive personal injury compensation claim must address both types of losses. Focusing only on financial damages ignores the human cost of your injury. Conversely, emphasizing only pain and suffering without properly documenting economic losses leaves money on the table.
At Oatley Vigmond, we ensure both aspects of your claim are thoroughly developed and presented. Our lawyers work with medical experts, economists, life care planners, and vocational specialists to build complete pictures of both the financial and human impact of your injuries.
How Accident Economic Loss Is Calculated
Documenting Your Financial Damages After Accident
Proper documentation is the foundation of proving pecuniary loss. Start documenting from day one:
Medical expenses:
- Keep every receipt, invoice, and explanation of benefits from insurers
- Create a spreadsheet tracking dates, providers, services, and costs
- Photograph prescriptions and save pharmacy receipts
- Document mileage to medical appointments
Lost income:
- Obtain letters from your employer confirming missed work
- Gather pay stubs, T4s, and tax returns showing pre-accident earnings
- Document lost overtime, bonuses, or commission opportunities
- Keep records of used sick days or vacation time
Other expenses:
- Save receipts for assistive devices and home modifications
- Document costs of hiring help for tasks you can no longer perform
- Track childcare expenses if your injury prevents you from caring for your children
- Keep records of any accident-related expense, no matter how small
Your lawyer will organize this documentation into a compelling presentation of your financial damages after accident, but the quality of that presentation depends entirely on the quality of your record-keeping.
Protect Your Right to Full Economic Compensation with Oatley Vigmond
Understanding the pecuniary definition and what qualifies as economic loss is your first step toward securing the compensation you need to rebuild your life after a serious accident.
These financial damages — from medical bills and lost wages to future care costs and lost earning capacity — form the foundation of your claim and ensure you’re not left bearing the financial burden of someone else’s negligence.
At Oatley Vigmond, we’ve spent decades helping seriously injured Ontarians recover full compensation for both their economic and non-economic losses. Our team of experienced personal injury lawyers works with leading medical, economic, and vocational experts to build comprehensive claims that account for every dollar of your loss — today and in the years to come.
We work on a contingency fee basis, meaning you pay nothing unless we win your case. If you or a loved one has suffered a serious injury, don’t wait to understand your rights and options.
Contact us today to discuss your case and how we can help you secure the compensation you deserve.
