Government slashes benefits to seriously injured MVA victims and calls it “Promoting consumer protection”

It’s a sad day for Ontario consumers when our government puts the interests of big business insurance companies ahead of the health and well-being of Ontario’s injured auto accident victims. The slashes to auto insurance coverage in the 2015 budget  can only be seen as a step closer to public auto insurance when with every cost saving solution the IBC comes up with in order to curtail claims means the unsuspecting tax-payer will pay more of the costs for victims through our publicly funded programs.

View our latest media release:  FAIR reaction to Budget April 28 2015

Ontario already has an auto insurance claims disaster:  Ontario’s Auto Accident Victims in Crisis

We’ve been overpaying for years: Returns on Equity for Automobile Insurance Companies in Ontario

What are auto accident victims losing so Insurers can gain greater profit on the backs of the injured?

The definition of catastrophic is set to be severely restricted to make the definition consistent with the latest medical evidence. That will likely mean that combining physical and psychological impairments will no longer be permitted. This will see many severely accident victims without adequate coverage.

 

Coverage available for catastrophically impaired victims will be cut in half. The limit of $1 million each ($2 million right now for both) for med/rehab and attendant care will be limited to $1 million total for both med/rehab AND attendant care combined. There will be optional coverage available at an added cost.

 

The standard duration for med/rehab benefits will be reduced to 5 years instead of the previous 10-year maximum, except for children. Costs for care will then fall on Ontario’s taxpayers through OHIP and various public supports.

 

Non-catastrophic coverage will be reduced. If the budget is passed, med/rehab and attendant care coverage will be $65,000, down from the current combined total of $86,000. Consumers will have an option to increase this coverage up to $1 million at an added cost.

 

The six month waiting period for non-earner benefits will be eliminated the duration of non-earner benefits will be limited to two years after the accident.

 

The government will be introducing amendments to the Insurance Act to adjust the deductible and the disappearing deductible amount to reflect inflation since 2003 and link it to future changes in inflation. The deductible or the amount you insurer is ‘allowed’ to keep when a claimant takes the insurer to court is presently $30,000 for cases in civil court that are worth less than $100,000. This is already a deterrent to victims’ ability to hold insurers accountable. There will be further changes to allow for the effect of the tort deductible to be taken into account when determining a party’s entitlement to costs.

 

Call or write to your MPP and tell them you expect better at: http://www.ontla.on.ca/web/members/member_addresses.do?locale=en 

Source: http://www.fairassociation.ca/