No one should have to struggle financially after being hurt in a car accident. You should be able to rely on coverage for the benefits and treatments you need—especially if you’ve been seriously injured in a motor vehicle accident.
The Ontario government recently proposed changes to auto insurance laws that may have significant implications for car accident victims. Let’s have a look at the proposed changes and how they may impact personal injury claims.
Proposed changes to personal injury law
The 2024 Ontario Provincial Budget proposes several significant changes to automobile insurance laws. Amendments to Statutory Accident Benefits are the ones that have our Sault Ste. Marie personal injury lawyers particularly concerned. If implemented, the changes will decrease mandatory minimum coverages for drivers, pedestrians, and cyclists injured in Ontario motor vehicle accidents. The changes will also impact people hurt in ATV, motorcycle, and snowmobile accidents.
Current mandatory accident benefits coverage
A claim for Statutory Accident Benefits—which are also known as “no fault benefits”—is the first step if you’ve been hurt in a crash. Whether you’re at fault for the accident or not, you are entitled to claim for accident benefits. Under the current laws, accident benefits include mandatory coverage for the following benefits:
loss of wages (income replacement benefits)
medical treatments and rehabilitation expenses (physiotherapy, chiropractic treatments, massage therapy, psychological treatments, exercise therapy and programs, gym memberships and more)
housekeeping expenses
caregiver benefits
non-earner benefits
attendant care and case manager expenses
ambulance fees
expenses surrounding a hospital stay (parking fees, meals if you are out of town, etc.)
expenses of visiting family members if the accident victim is in a hospital out of town
medication (not already covered by any private insurance plan)
assistive devices (slings, crutches, braces, etc.), clothing, hearing aids, etc. damaged in the motor vehicle accident
childcare expenses.
In addition to a no-fault benefits claim, the injured person has the right to a “tort claim.” If the accident caused severe injuries or permanent injuries, such as serious soft tissue injuries (whiplash), fractures, brain injury, psychological impairment, or other serious injuries, the injured person can sue the at-fault driver to get awarded damages for pain and suffering, loss of earning capacity, future care costs, and other types of damages that aren’t available in a no-fault accident benefits claim.
Government proposes to decrease mandatory coverage
The 2024 budget proposes to change the law so that mandatory accident benefit coverage applies only to medical, rehabilitation, and attendant care benefits. All other no-fault benefits in the list above would become optional. The Ontario government says that this will enable more consumer choice.
If the proposed change to the Statutory Accident Benefits Schedule under the Insurance Act is made, Ontario drivers will have to decide whether to purchase additional coverage when buying auto insurance. In other words, you will have to decide upfront whether to pay to “opt in” so you continue to receive the same level of coverage that is mandatory under the existing auto insurance laws.
Accident insurance benefits claims are already difficult to navigate. Claim deadlines, delays, and denials are tough enough as it is. Our Sault Ste. Marie personal injury lawyers expect that the change to reduce mandatory coverage will make accident benefits claims even more challenging. We also anticipate that many accident victims will be left with inadequate coverage—especially for lost income—should they be seriously injured in a crash.
Another concern is that the proposed changes may have major repercussions for tort claims. Accident victims who find themselves with inadequate no-fault coverage will seek to recover previously covered losses from at-fault drivers. That will lead to an increase in damage awards made in tort claims (again, especially for past income loss claims). If insurers are having to pay out more for tort damages, you can bet that they’ll look to consumers to cover that increased exposure by raising insurance premiums across the board.
Our personal injury law firm will be closely following the proposed changes as the government investigates and considers whether to implement the new laws.
GET TRUSTED ADVICE FROM OUR PERSONAL INJURY LAW FIRM
Sault Ste. Marie personal injury lawyers at Feifel Gualazzi are here for you if you’ve been hurt in a vehicle accident. Your injuries and the complications they cause in your life can quickly become overwhelming. Navigating the no fault insurance system and tort claim process can add to your stress level. Why go it alone when you can trust the Feifel Gualazzi team to take care of all the details?
Our dedicated personal injury law firm in Sault Ste. Marie assists vehicle accident victims like you get the full range of financial support you need. If you’re in or near Sault Ste. Marie, contact us today to schedule a free consultation with a personal injury lawyer at our law firm and find out if you have a case!
Comments