Psychological Injury Claims in Canadian Personal Injury Law: Evolution, but still a terrain of distinct challenges

November 25, 2025, Kitchener, Ontario

Posted by: Robert Deutschmann, Personal Injury Lawyer

In personal injury practice, we’re increasingly recognizing that an accident’s impact isn’t limited to broken bones or bruises. Psychological injuries—PTSD, anxiety, depression, and related conditions—are now a central part of many claims. Yet even as courts acknowledge their reality, these claims still confront unique legal and practical hurdles that plaintiffs and their lawyers must navigate.

A turning point was the shift from focusing on a formal diagnosis to examining real-world impact. The law now asks: how does the injury affect the claimant’s daily life, their ability to work, and their quality of living? An injury that disrupts functioning can be compensable even without a recognized psychiatric illness. Courts emphasize that the negligence rule treats mental and physical injuries alike, and that liability should not be precluded simply because a formal diagnosis is absent.

That said, the path to recovery is not straightforward. Foreseeability remains a key concept: the injury must be reasonably connected to the accident, and the psychological harm must be something that could reasonably follow from the event. In practice, this often means showing that the symptoms are caused by the accident and that they have a meaningful, lasting impact on the claimant’s life. While getting a formal diagnosis isn’t strictly required, having a medical explanation for the symptoms strengthens a case by establishing causation and credibility.

Another enduring challenge is the inherently subjective nature of psychological harm. Unlike a broken bone, there’s no single image or test that proves the injury. Assessments rely on expert opinion and the claimant’s self-reporting, which can invite skepticism and vigorous cross-examination. Insurers may also be more inclined to allocate lower reserves for purely psychological injuries unless the impact is clearly documented. That makes the evidence trail—medical records, treatment histories, and corroboration from family, colleagues, or friends—crucial.

Credibility often becomes a focal point. A claimant who is honest, cooperative, and credible about the disruption to life is more likely to be believed when describing symptoms like intrusive thoughts, sleep disruption, or withdrawal from activities they once enjoyed. Consistency across medical records, testimony, and everyday behavior helps counter attempts to doubt the severity or cause of the injury.

Practical steps for plaintiffs and their counsel include:

1. Build a robust evidentiary record with medical and psychological evaluations that tie symptoms to the accident.
2. Document functional impact: work performance, social relationships, hobbies, mood, sleep, and daily routines.
3. Gather corroboration from trusted witnesses who can describe changes in behavior and ability.
4. Maintain careful, contemporary symptom diaries and activity logs.
5. Be mindful of causation: clearly connect the onset and progression of symptoms to the incident, rather than to other life stressors.
6. Prepare for credibility challenges by presenting a coherent, consistent narrative supported by objective records.

Looking forward, the landscape is shifting toward equitable treatment of mental injuries, but the practical hurdles persist. For claimants, the goal is to translate subjective suffering into demonstrable, life-altering impact; for practitioners, it’s about assembling a compelling evidentiary mosaic that withstands the scrutiny of defense experts and insurers alike. If you’ve suffered an accident and notice lasting psychological effects, seek counsel experienced in psychological injury claims to navigate these nuanced waters and advocate for fair compensation.

About Deutschmann de Koning Law

Deutschmann de Koning Law serves South-Western Ontario with offices in Kitchener-Waterloo, Cambridge, Woodstock, Brantford, Stratford and Ayr. The law practice of Robert Deutschmann and Nick de Koning focuses almost exclusively in personal injury and disability insurance matters. For more information, please visit www.ddinjurylaw.com or call us at 1-519-742-7774.