Car Accident Settlement Question?

Question:
I live in Canada. My insurance for my car accident is ready to settle. My lawyer tells me that the government takes 30,000 off the total of the amount they are willing to give me. So after I pay the lawyer & the government takes 30,000, that leaves me with a small amount. I am just curious as to why the government gets $30,000 off my settlement as they are not the ones who pay my car insurance payment every month.
I would appreciate any input I can get on this.
Does the government always take money off your car accident settlements??
Thanks

Answers:

Can I drive my parents' car without having my name added to the insurance list in the same city?

There is something missing in this story. I have no idea why you are being told the government is taking $30,000, unless you owe $30,000. Ask your lawyer what the $30,000 is for. I am a licenced insurance broker and I have no idea.

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I live in the US, so I am not at all familiar with Canada's laws. Could it be that they are taxing the settlement as income?

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What happens when you stop paying your car payment?

Welcome to the socialist form of government.

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