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ONTARIO AUTO REFORM
 Changes to the Statutory Accident Benefits Schedule
The Financial Services Commission of Ontario (FSCO), the government body that regulates automobile insurance in Ontario, introduced new auto reforms that came into effect on September 1, 2010.
As a result of these reforms, the Accident Benefit limits and options on all private and commercial automobile insurance policies will have changed. The reforms were designed to provide you with more choice, allowing you to customize your policy to suit your individual needs.
Accident Benefits provide coverage for costs associated with medical & rehabilitation services, income replacement, attendant care expenses, caregiver expenses, housekeeping and home maintenance expenses, indexation Inflation), dependant care, and death & funeral benefits that arise as a result of an automobile accident. Under the new reforms you will be covered and have access to many benefits, regardless of who is at fault.
Due to the significant increase in claims costs over the past several years, insurance costs in Ontario have been increasing steadily, prompting the government to review legislation. Currently, Ontario has the most generous auto accident benefits coverage in Canada, resulting is costlier claims. This is largely due to the increasing costs of medical assessments and legal fees as opposed to treatment. For every dollar spent on treatment, approximately 60 cents more is spent on assessments. The average claim in Ontario rose from approximately $30,000 in 2005, to about $53,000 today, while claims costs in other provinces are a fraction of those for Ontario, for example Alberta is about $3,689.
The reforms are intended to improve the process by addressing the existing challenges, help to reduce claims costs and stabilize auto insurance and premiums over the long-term to create a more efficient, stable insurance system. In most cases, a rate reduction will not be realized.
All policies written or renewed on or after September 1, 2010, will be issued subject to the new reduced standard accident benefit schedule. Contact your broker to request coverage changes.
To learn more about the 2010 Ontario Auto Reforms and how it will affect your policy, we encourage you to contact one of our offices. All of our brokers are experienced professionals and here to help you understand your insurance coverage.
For additional information on the Auto Reforms and what is right for you, kindly refer to the following documents and website links.
http://www.understandingmyinsurance.ca
http://www.fsco.gov.on.ca/english/insurance/auto/undautoins.asp
Click here to download the brochure - Providing More Choice to Consumers
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