2016 Ontario Auto Insurance Reform – Adjustments to your Accident Benefits coverage
Effective June 1st 2016
These changes are very important to understand, if you have any questions at all please do not hesitate to contact our office at 905-775-5411
As of June 1st 2016, the Financial Services Commission of Ontario will be implementing changes to your Ontario Auto Insurance with the intended goal of meeting the Ontario governments’ promised rate reduction targets. Though these changes will provide you with more choice and control over your auto premium, it is important you understand how these changes will affect your auto policy.
Most Significant Changes
On June 1st, 2016 if you are buying a new policy or renewing an existing one, you should be aware of these THREE significant changes to your auto insurance:
| Benefit | Current Policy | New Policy | You Can Choose |
| Medical and Rehabilitation for non-catastrophic injuries | $50,000 | These benefits have been combined and reduced to $65,000 total |
Increase the benefit to $130,000 total |
| Attendant Care for non-catastrophic injuries | $36,000 | ||
| Medical and Rehabilitation for catastrophic injuries | $1,000,000 | These benefits have been combined and reduced to $1,000,000 total | An additional $1,000,000 for a total of $2,000,000 for catastrophic injuries |
| Attendant Care for catastrophic injuries | $1,000,000 | ||
| Medical, Rehabilitation and Attendant Care, all injuries | Not Applicable | Not Applicable | Increase the combined non-catastrophic benefit to $1,000,000 and the combined catastrophic benefit to $2,000,000 |
Some important things to remember about these choices:
- If you have previously chosen to purchase these optional benefits, check your policy – they may have been changed to reflect amounts available in the new options
- Medical, Rehabilitation and Attendant Care benefits for minor injuries are fixed at a maximum limit of $3,500
- If you purchase both the additional Medical, Rehabilitation and Attendant Care benefit for catastrophic injuries and for all injuries, the total eligible benefit amount for a catastrophic impairment would be $3,000,000
Other Optional Benefits
| Benefit/Coverage | Current Policy | New Policy | You Can Choose |
| Income Replacement Benefit | 70 per cent of Gross income up to $400 per week | No Change | To increase the weekly Limit to $600,$800 or $1,000 |
| Caregiver Benefit | Available only for catastrophic injuries: Up to $250 per week for the first dependant plus $50 for each additional dependant | No Change | To make the same amounts available in current policy for catastrophic injuries available for all injuries |
| Housekeeping and Home Maintenance Expenses | Available only for catastrophic injuries: Up to $100 per week | No Change | $50,000 lump sum to an eligible spouse; $20,000 lump sum to each dependant; maximum $8,000 funeral benefits |
| Dependant Care Benefit | Not Provided | Not Provided | To purchase this benefit and add up to $75 per week for the first dependant and $25 per week for each additional dependant to a maximum of $150 per week. |
| Indexation Benefit | Not Provided | Not Provided | To add an annual adjustment for inflation for many benefits according to the Consumer Price Index for Canada to your policy |
| Third Party Liability | $200,000 minimum for claims as a result of lawsuits against you |
No Change | Options exist to increase the minimum amount |
| Tort Deductible | $36,905.40 deductible for court awarded compensation for pain and suffering (Jan 1-Dec31, 2016) | No Change | Reduce deductible by $10,000 regardless of annual indexation percentage increases |
What Else Is New?
Other key changes include:
| Minor Accidents | Insurers can no longer use a minor at-fault accident that occurs on or after June 1, 2016 meeting certain criteria to increase your premiums. The criteria include that no payment has been made by any insurer, that there are no injuries, and that damages to each car and property were less than $2,000 per car and were paid by the at-fault driver. This provision is limited to one minor accident every three years. |
| Interest Rate for Monthly Payment Plan | The maximum interest rate that insurers can charge if you make monthly premium payments has been lowered from 3% to 1.3% for one year policies, with corresponding reductions for shorter terms. |
| Comprehensive Deductible | The standard deductible for Comprehensive coverage has been increased from $300 to $500. |
| Non-Earner Benefit | The six-month waiting period for people who are not working to receive benefits has been reduced to four weeks. Conversely, benefits can now only be received for up to two years after the accident. |
| Duration of Medical, Rehabilitation and Attendant Care Benefits | For all claimants except children, the amount of time that you can receive this standard benefit is now five years for non-catastrophic injuries, and it will be paid only as long as you remain medically eligible. |
The below attached document is a summary of the amendments only. Please contact our office if you have any questions of how these changes will affect you. You can view the complete list of changes at the Financial Services Commission of Ontario’s website www.fsco.gov.on.ca
As always, Lomonte & Collings strives to provide our clients with the care and customer service they deserve. We understand that everyone’s situation is unique and it is our job to ensure that your coverage matches your individual needs. If you have any questions or concerns, please contact our office right away and one of our insurance professionals will be happy to assist you.
Thank you for choosing Lomonte & Collings.
Sincerely,
The Lomonte & Collings Insurance Team