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Ontario Budget 2024: Impact on Motor Vehicle Accident Victims
For decades, reforms to the auto insurance system have been a political talking point for all major parties in Ontario, usually presented under the guise of making life more affordable as opposed to ensuring informed choice, value for premiums and protection for the most vulnerable. Despite consultations with key stakeholders, including health service providers and advocates for car accident victims, Ontario’s latest budget will again reduce costs to insurers by decreasing mandatory minimum coverages. History has shown this to only increase profits for insurers.
Under the heading “Enabling More Consumer Choice”, the government states that mandatory minimum accident benefit coverage will apply to only medical, rehabilitation, and attendant care benefits, while all other benefits would become optional. This will require consumers to “opt-in” to continue to have the same coverages that were previously mandatory, which many consumers already have difficulty understanding. It will be imperative for consumers to ensure that they have adequate coverage for lost income in the event of an accident.
The government is proposing to make auto insurance pay for medical and rehabilitation benefits following an auto accident before extended health care plans do. While this could be a positive change to simplify access to treatment for car accident victims and their health care providers, the fact is that many car accident victims who also have extended health care plans (through employment, etc.) will have to have one plan top-up the other because the Professional Services Guideline and the Attendant Care Hourly Rate Guidelines are so low (the latter being lower than minimum wage) that many health care providers will not work for those rates. While the government is “requesting” that the Financial Services Regulatory Authority of Ontario (“FSRA”) review these Guidelines and “consider updating” them based on their findings, health care providers and advocates for car accident victims had hoped for more urgent action in this regard.
Finally, it should be noted that the government has yet to come through on its budget commitment from 2019 to restore accident benefits coverage for catastrophically impaired car accident victims to $2 million. The budget is also silent on any suggestions of court reforms that would make litigating personal injury claims arising from car accidents more fair to victims and their families.
Consumers should remember that, when purchasing insurance, like anything, you get what you pay for. So if your premiums decrease as a result of these changes, know that this is because your coverages have decreased and insurance payments to health care providers have failed to keep up with market rates. It is vital to speak to a knowledgeable insurance broker to fully understand what protections are afforded under your auto insurance policy and how they interact with other policies you may hold.
This article was written by Personal Injury Lawyer, Sarah Kirshin-Neilans. For additional information, please do not hesitate to contact sarah.kirshin-neilans@mckenzielake.com.
If you require assistance with any legal matter, speak to a lawyer at McKenzie Lake Lawyers LLP by calling (519) 672-5666.
