Ontario NDP Takes Stand on Auto Insurance

TORONTO (October 3, 2011) – In a prepared statement sent to the Alliance of Community Medical and Rehabilitation Providers, the Ontario New Democratic Party says an NDP government would “seriously consider” freezing auto insurance premiums pending a thorough review of the system.

In addition, it said “we would take a careful and systematic look at the various caps, exemptions and cuts instituted in September 2010 and undo those that are doing harm.”

The NDP stated that the government’s changes have resulted in drivers paying higher premiums for reduced benefits. “The reforms implemented a year ago have proven to be in the interest of the auto insurance industry, not accident victims,” the statement noted.

The NDP supports the Alliance’s recommendations for greater transparency in how auto insurers set their rates. “We will sit down with all stakeholders in the system to make this badly needed transparency a reality,” said the NDP.

The NDP is, so far, the only party in the election campaign to take a strong position on auto insurance. It was responding to a questionnaire which the Alliance sent to the three main political parties. The Liberals and the Tories have not addressed the key issues raised by the Alliance (see below).

Nick Gurevich, President of the Alliance, applauded the NDP’s willingness to speak out. “Good on the NDP. They take a stand. We hope this puts pressure on the other party leaders to address what is a major concern for thousands of consumers, accident victims, and healthcare providers,” he said. The full NDP statement can be viewed on the Alliance’s website – www.ontariorehaballiance.com.

Key Issues

Higher Premiums, Reduced Benefits

Rate hikes in Ontario are now running at more than double the rate of inflation. According to Kanetix, an online insurance quote comparison service, auto insurance rates in Ontario increased 6.4% in the second quarter of 2011 compared to the same period a year ago.

Under the Liberals, standard medical and rehabilitation benefits for minor injuries are now limited to $3,500, and benefits for serious injuries have been reduced from $100,000 to $50,000.

Treatment Being Denied

According to an Alliance survey of rehabilitation providers, an increasing number of people injured in motor vehicle accidents are now being denied healthcare services.

More than two-thirds of the survey respondents said insurers are now denying 30% or more of assessment and treatment plan requests (vs. a denial rate of 10% or less a year ago). 

Under the Liberal government’s reforms, insurance companies are no longer required to obtain a second medical opinion before they can deny a request for assessment or treatment. That means an insurance adjuster with no medical training decides whether or not you need the rehabilitation therapy or equipment that a health care professional recommends for you.

Victims Running Out of Benefits

The same survey identified asignificant increase in the number of accident victims who are now running out of benefits before they are fully recovered.A majority of providers said at least half of their clients will now run out of benefits (vs. 10% or fewer of their clients a year ago).

Dr. Donna Ouchterlony, medical director of the Brain Injury Clinic at St. Michael’s Hospital, puts it this way: “We are seeing more and more patients with serious injuries whose insurers are outright denying treatment, and when funding is approved, it is no longer nearly enough.”

The Alliance

The Alliance represents approximately 80 companies and about 3,500 health care providers including physiotherapists, occupational therapists, speech language pathologists, chiropractors, psychologists, rehabilitation therapists, social workers, personal support workers and case managers. It is these individuals who are the primary providers of healthcare and rehabilitative services to Ontarians injured in automobile accidents.

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For further information, visit www.ontariorehaballiance.com.

To arrange an interview, contact:

Niki Kerimova
416-777-0368