The Ontario government released its budget on April 23, and with it has come a host of changes to the current auto insurance scheme.
As discussed in one of our past blog posts, there has been increased pressure on the government to reduce automobile insurance premiums. A recent poll in Law Times has shown that many people are divided as to who is to blame since there are many factors at play.
Some argue that these changes reduce the benefits available to accident victims. They claim that the government had not been diligent in consulting with stakeholders to consider other ways to reduce premiums that do not negatively impact the benefits available to those who have been injured. Others argue that the government did not investigate the issue adequately by looking at the profit made by insurance companies.
According to the Law Times article which references the budget, the modifications included several reductions. These include reductions in the benefit maximums in non-catastrophic impairment claims from the current total maximum of $86,000 to a combined total of $65,000, a reduction in the duration of eligibility for non-earner benefits from life to a maximum of two years, and a reduction in the maximum medical and care benefits available to catastrophically-impaired people from $2 million to a total of $1 million.
Tort deductibles have also been indexed to inflation since 2003, which means that those with a valid claim for pain and suffering will face “an inflated deductible of roughly $37,000 instead of the current $30,000 unless their pain and suffering award is assessed at more than the inflated vanishing deductible of roughly $123,000. While this change is arguably an attempt to adjust the previous deductibles to the level intended in 2003, it’s notable that the accident-benefit limits have all remained unchanged by inflation for the last 20 years.”
The government also tried to revise the definition of catastrophic impairment in an effort to include only the most seriously injured persons. This change will thus create a narrower designation for catastrophic impairment, making it more challenging to identify who fits within the definition.
It is yet to be seen if these changes will resolve the auto insurance problem and who will benefit the most from these changes: the government, the consumer, or the insurance industry.
Regardless of these factors, the best way to ensure that you receive fair care and compensation after an accident is to speak with an experienced personal injury lawyer who can assist you in making claims and building a solid case.
