|
|
What's New
|
|
Ontario Auto 5 year
review- Report of
Recommendations
The Financial Services
Commission of Ontario(
FSCO) has published on
its website its report
of recommendations for
changes to auto
insurance. The report
has been submitted to
Minister of Finance
Dwight Duncan for
consideration. The 70
page report contains 39
recommendations. FSCO
notes that there is
upward pressure on
rates;
rate increases have not
kept pace with rising
loss costs and consumers
will likely see their
premiums increase
significantly in 2009
and 2010 without some
structural changes to
the auto insurance
product to reduce and
stabilize costs in the
system. Availability of
insurance is not
currently an issue. The
statutory accident
benefits schedule (SABS)
is overly complex; SABS
forms are also
considered to be too
complex with too many
forms required.
Some of the
recommendations for
consideration are as
follows:
-
Review the SABS with
the goal of reducing
complexity.
Simplify the
application process
and revise forms.
Prohibit the use of
25% at fault or less
as a rating
criteria.
Change regulations
to prohibit use of
“lifestyle” factors
such as credit score
for quoting
purposes.
Consult with experts
to determine if
there is a need to
amend the definition
of “catastrophic
impairment”. Restrict
the ability to
conduct catastrophic
impairment
assessments to
practitioners with
appropriate training
and experience.
Limit Section 24
assessment expenses
to the same maximum
monetary and time
limits that apply to
medical and
rehabilitation
benefits under
section 19 of the
SABS. The
cost of all other
assessments should
be capped at $2,000.
Reduce the cap for
medical and
rehabilitation
benefits for
non-catastrophic
claims to $25,000.
Introduce a $100,000
optional medical and
rehabilitation
benefit along with
the existing $1
million optional
benefit.
Only occupational
therapists and
nurses who have been
trained on the use
of Form 1 should be
permitted to assess
auto accident
victims for the
attendant care
benefit.
Make housekeeping
and home maintenance
expenses and
caregiver benefits
optional.
Reimbursement for
housekeeping and
home maintenance
expenses and for
replacement
caregivers needs to
reflect actual
economic losses.
Reduce the
deductibles to
$20,000 and $10,000,
eliminating the
deductibles for
fatal claims, and
revoking the
definition of
serious and
permanent impairment
set out in
Regulation 461/96.
|
|
|
|
