Blogs » Law and Legal Services » Deutschmann Personal Injury & Disability Law - PERSONAL INJURY & DISABILITY LAW BLOG
 

Blogs

Deutschmann Personal Injury & Disability Law - PERSONAL INJURY & DISABILITY LAW BLOG
Car Accident Victim Benefits Continue to Erode - Find out where the parties stand before you vote
Return to Blog 

The Car Insurance and personal injury and accident benefits in Ontario are prescribed by the government, which should work with the direction of the public and the insurance companies to deliver a balanced formula of reasonable premiums and reasonable benefits. This Balance has been out of whack for some time now, and injured motorists and pedestrians are the ones suffering from the imbalance.

In Ontario car insurance is mandatory. Almost all Ontarians have the same policy that is bought from one of hundreds of insurers in the country. While there are a few ‘optional’ benefits like increased coverage for certain claims, almost all drivers carry the exact same policy. The benefits have been slowly eroded since the 1990s while the premiums and insurance company profits have been on a steady increase. In Ontario we pay 50% more than the national average for our policies.

The history of eroding benefits goes back to 1990 when the Ontario government passes a ‘no fault’ hybrid insurance regime which insured all drivers providing coverage for claims regardless of fault. This was intended to resolve the situation where car accident victims were forced to sure for benefits. These lawsuits cost insurers a lot.

In 1994 Bill 164 again moved us closer to a no fault style of insurance. It removed a victim’s right to sue for lost income, out of pocket expenses, or the cost of cares. It established a ‘deductible’ for pain and suffering damages in which the first $10,000 of pain and suffering awards went from the injured person’s pocket into that of the insurance company. In exchange the government created an accident benefits system that allowed the injured person to receive prescribed benefits from their own insurer.

In 1996 the complications of Bill 164 were acknowledged, and Bill 58 came into effect which allowed injured people to make claims for all damages including economic losses against the at-fault driver. A new $15,000 deductible was established for pain and suffering awards, and the money would go back to the insurer. Lost income was allowed up to 80% of net income. In exchange for the right to sue the government severely curtailed the accident benefits injured parties were entitle to. Many auto insurers complained that the cost of healthcare under this plan was too high.

In 2003 the law was again changed resulting in victims who claimed pain and suffering having to repay $30,000 to their insurers. This was done to increase insurance company profits and reduce costs.

In 2010 the government again made changes. This time they were major and included an overhaul of the statutory accident benefits. It established Minor Injuries which would have a maximum of $3500 in medical and rehab benefits. For those who suffered broken bones or neurological injuries a $50,000 cap was established. Housekeeping benefits were eliminated, and attendant care limits were cut in half. Catastrophically impaired victims faired the worst in this change. These changes were all justified by promising a reduction in the cost of premiums that was never achieved.

2015 saw yet another major change limiting the punishments that could be doled out to insurers who improperly denied claims. We have now found a system that encourages insurers to delay or deny payments of benefits as they cannot be punished for doing so.

2016 saw yet another reform which once again reduced accident benefits to satisfy the insurers cry that the system is too expensive. The changes drastically reduced medical benefits to individuals with serious injuries and created limits to the time they may be claimed. Benefits available to catastrophically impaired people were cut in half. For those who require 24 hour care the benefit money may well run out long before their life ends. The deducible for pain and suffering is now at $40,000 and it continues to rise for inflation. The benefits to injured people are not indexed to inflation. These changes again serve the insurers not the injured.

Find out where the parties stand in the upcoming provincial election. Ask your candidate about the state of car insurance in Ontario. Consider purchasing additional benefits for your car insurance policy so that you are better covered in the event of a serious accident.

 

 

Posted on Sunday, May 06, 2018 - 09:27:00 AM EST
 Comments  (0) Post a Comment 
   By Deutschmann Personal Injury & Disability Law (Lawyers) - Visit Our Business Directory Listing  |   Return to Blog 

Blogs Home   |   Start a Blog   |   Subscribe To Blog
News   |   Announcements   |   Events Calendar
Contact The News Editor   |   News FAQs

 
    <<     December  2018     
S M Tu W Th F S
            1
2 4 5 6 7 8
9 11 12 13 14 15
16 18 19 20 21 22
23 24 25 26 27 28 29
30 31          
Jump to:

Article Categories
Car Insurance
Community
Disability Law
Personal Injury Law

Recent Articles
New Distracted Driving Law January 1 - Part of Cannabis Legislation
Caught Driving Impaired? It'll cost you $23,000 says report
Drinking and driving on the rise at the holiday RIDE stops
Driving the Wrong Way - OPP Issues Warnings
Clear the Snow and Ice Off Your Vehicle
Winter is Coming - 10 Tips for Winter Driving
Life After Brain Injury for Certain Populations is Very Hard
Dyslexia May be Linked to Concussion Susceptibility
Factors identified linking deaths after brain injury
Taking Selfies Can Be Fatal
Real consequences of distracted driving
New Electrical Implant Therapy Gives Hope to Patients With Paralysis
Electric Scooters - Zipping Along Can End Badly
The Brain is a Magnificent Thing - 5 Ways it Heals Itself
The Road to Recovery from Brain Injury Is Long
Road Rage Leads to Car Surfing on Hwy 400
Excessive Speeds
Farming is Dangerous Business
Distracted Driving Remains a Serious Problem in Our Region
“Concussion Pill” May be on the Horizon

Articles by Month of Posting
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
January 2010