On September 1, 2010 the Ontario Automobile Policy is changing coverage options for Accident Benefits in order to help stabilize rates, control costs and to provide flexibility and choice. We’re writing to let you know about these changes and to give you the opportunity to select coverage that fits your best.
When does this take effect? The changes take effect September 1, 2010
How does this affect me? Some of the limits have changed. Below see a summary of the coverage areas affected and the options that are available to you. You now have a range of options for coverage to best meet your protection needs and budget. About 4% of claims reported in Ontario have Accident Benefit payouts. Ontario still remains the province with the most generous Accident Benefit protection in Canada and is the only province to provide additional coverage for people who suffer severe injury. The benefit for severe, catastrophic injury has not changed and remains at $1,000,000.
Will my rates go down? The new benefits are intended to stabilize rates from increasing. You will not see a decrease in premiums because of this change.
Where can I find more information? You can find detailed information online at the Financial Services Commission of Ontario web-site and Ontario’s Ministry of Finance web-site. You can also read more about these changes from the bulletins listed below:
What do I have to do? All auto policies in Ontario will be automotically amended to the new benefits. By doing nothing your policy will renew with basic accident benefits coverage. If you wish to upgrade your coverage, contact your broker. As always, we are here to answer any questions you may have.
|Effective September 1, 2010||What You Had||What You Have Now||What You Can Buy|
|Income Replacement: Replacement of net income for lost income due to an auto accident.||$400 maximum per week|
80% of net income
|$400 maximum per week|
70% of gross income
|Increase weekly benefit to $600, $800 or $1000|
|Caregiver: Weekly coverage if you are a main caregiver. Includes housekeeping and home maintenance expenses.||$250 First Person|
$50 Addtl People
|Coverage for Catastrophic Injury only.||Caregiver coverage for non-catastrophic injury.|
|Medical & Rehabilitation (Non-Catastrophic): Medical Expenses Including rehabilitation costs||$100,000||$50,000||$100,000|
Includes attendant care
|Medical & Rehabilitation (Catastrophic): Medical expenses including rehabilitation costs||$1,000,000||$1,000,000||No change|
|Attendant Care (Non-Catastrophic)||$72,000||$35,000||$72,000|
|Death & Funeral: Pays lump sum in event of death resulting from an automobile accident. Includes funeral costs.||$25,000 Spouse|
$6,000 Funeral Cost
|No Change||$50,000 Spouse|
|Indexation: Applies cost of living annually to Accident Benefits.||Optional||Optional||Optional|
|Third Party Liability: If you are seriously injured in a not-at-fault accident you can sue the at-fault driver for pain & suffering. A deductible is applied to the court award.||Current deductible applied is $30,000/$15,000 for family members||No change||Reduce deductible to $20,000/$10,000 for family members|