MORE REDUCTIONS IN AUTO INSURANCE COVERAGE?
We have all experienced or heard about high insurance premiums in the Ontario auto insurance system. Why does this occur? The insurance industry wants us (and the politicians at Queen’s Park) to believe that premiums are high solely because too much money is being paid out in claims. Is this really the case?
In a 2012 report by the General Insurance Statistical Agency, it was noted that the insurance industry took $3.78 billion in accident benefit premiums from Ontario drivers, but paid out only $1.67 billion in claims and adjustment expenses. Since 2010 the Ontario accident benefits regime has been changed in several ways. All of these ways help the insurance industry and reduce benefits for injured people. Some of the changes include:
• Implementation of Minor Injury Guideline which limits medical/rehabilitation coverage to $3,500 for the vast majority of all people hurt in car accidents;
• Reduction of medical/rehabilitation limit coverage from $100,000 to $50,000 for those people who do not fall into the Minor Injury Guideline and who are not catastrophically impaired;
• Elimination of housekeeping and home maintenance benefit for non-catastrophic claims;
• Implementation of the concept of “economic loss” or “incurred expense” for attendant care benefits.
The insurance industry is not satisfied with these changes. The insurers have asked for further changes including eliminating your right to sue your insurance company if it improperly denies benefits to you after an accident. There is a provincial election coming up on June 12, 2014. You should consider whether the candidates in your riding support further reduction of auto insurance benefits before casting your vote.
