AUTOMOBILE INSURANCE HAS CHANGED IN ONTARIO
Prepared from information provided by the Financial Services Commission of Ontario and the Insurance Bureau of Canada.
In recent years, automobile insurance premiums have increased substantially as claims costs have been rising. The insurance industry and the Ontario government have been working to ensure that car insurance in Ontario is fair and affordable. To help control costs and to stabilize rates, the Ontario government is implementing a reform package.
Measures effective October 1, 2003, deal with fairness and immediate cost pressures. They are designed to ensure that injured people receive the care they need while reducing administrative procedures, fraud and abuse. Some of the changes are the following:
- Streamline access to treatment for common injuries such as whiplash by introducing a pre-approved framework for treatment;
- Improve access to benefits for children and others suffering serious injuries;
- Reinstate the application of the deductible if the car is stolen and not found or the car is a total loss (or write off).
Measures effective November 1, 2003, apply to the work of paralegals by:
- Regulating business practices of paralegals;
- Introducing a code of conduct for paralegals working in the automobile insurance system.
- The maximum tow truck and storage fees payable by the Insurer for a loss in Southern Ontario have been set at $300. Since these costs can quickly exceed the set limit, we ask our clients to verify the costs before requesting these services.
Measures effective April 15, 2004, apply to the coverage and the claims process:
The claims process regarding accident benefits and bodily injuries was modified and more changes will be implemented in the future. Please call us prior to retaining the services of healthcare professionals.
The measures described above are part of an ongoing process and will be followed by additional changes. The combined effect of the measures should contribute to further reduce costs and stabilize premiums.
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