Budget Confirms No Cuts to Accident Benefits

There’s no really big news (as in new information) about auto insurance in today’s budget. And maybe that’s good news.

The government says that it is “committed to finding ways to lower auto insurance rates and improve health outcomes for victims of auto accidents without reducing benefits”; it’s good to see that in writing after years of benefit cuts.

The budget  references the Marshall report, highlighting recommendations re programs of care and the establishment of Independent Medical Examination Centres. However, the budget does make clear the report has yet to be consulted on in the coming months.

The budget also referenced the establishment of the Financial Services Regulatory Authority (FSRA), legislated in December 2016. The FRSA will be assuming responsibility for regulating auto insurance, and presumably providers. The budget says the FSRA Board should be in place this spring and will then begin to develop its mandate.

So chances are there may not be many developments that will concern us, other than consultation for a number of months.

I was amused to read maybe the only specific innovation made in the budget for auto insurance consumers: drivers will now be able to use their phones to show electronic/digital proof of insurance. It is the government’s expectation that insurers will pass along to consumers the savings they realize from not having to send these pink pages. Seriously?

Leave Reply