Proposed Change To Auto Insurance Could Diminish Benefits For The Catastrophically Impaired
Be aware of the proposed Changes to Accident Benefits which impacts all of us (including our loved ones) when injured in a car crash.
If you or a loved one is injured in a car accident you are entitled to certain benefits which you will rely on for your recovery. These Accident Benefits are paid by you and regulated by the Ontario Government.
In 2010 the Ontario Government permitted insurance companies to dramatically cut these benefits for all accident victims. Now the government is proposing more changes to auto insurance that will significantly reduce the benefits available to those who have been catastrophically impaired.
Finance Minister Charles Sousa recently announced the following proposed changes to the standard benefit level:
-$1 million coverage for medical and rehabilitation benefits and $1 million for attendant care benefits for catastrophically impaired persons (Quadriplegic, paraplegics, amputations, severe brain injuries, etc.) to be cut in half and combined. The average medical and attendant care costs for a quadriplegic eclipses $10 million. Why victimize these individuals further by taking away their dignity and independence.
-Non-catastrophic benefits to be reduced from $86,000 to $65,000.
-Medical and rehabilitation benefits for non-catastrophically injured persons will be available for only 5 years instead of 10.
-Non-earner benefits (available for students or recent graduates) limited to two years.
We encourage you to write your local MPP, Charles Sousa and Premier Kathleen Wynne with your opposition to these changes.
Interesting Facts to Consider
-The government’s own researchers from York University’s Schulich School of Business (Professors Lazar and Prisman) recently reported in a study for OTLA that consumers likely overpaid by $840 million in 2013 alone because of runaway profits.
-They also reported that insurers made on average 17.5% return on equity in 2013 alone. Why should the insurance industry be given preferential treatment and be permitted to profiteer at the expense of the injured and all premium paying policyholders?
-In 2010 the government reduced benefits to minor injuries and since then, the Return of Equity to the average insurance company has increased.
-In April 2016 a new system is being implemented to reduce significant procedural and administrative costs within the system. It is estimated that this will provide significant savings within the system and drive premiums down. If that is the case, then why move ahead with the largest and most significant benefit reduction against the most vulnerable people in the system?
-Catastrophic claims represent a small fraction of those injured in motor vehicle accidents.
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