Government Announces Changes

The government has announced its proposed changes to Ontario Auto Insurance. The link below, has as much detail as currently available. As always, the devil will be in the detail, and will emerge as the panel and consultations gets into gear, and through our discussions with Finance and FSCO.

Highlights from the release – some ORA comments/notes in italics:

1. Implementing standard treatment plans for common collision injuries such as sprains, strains and whiplash, changing the emphasis from cash payouts to ensuring appropriate care for victims – No specific reference here to ‘minor injuries’ but this is likely some version of the CTI; we’re hopeful that this language of ‘sprains, strains, whiplash’ means that brain injuries are no longer included. The intention is to have the first of these plans in place by spring 2018.
2. Reducing diagnosis and treatment by instituting independent examination centres to assess more serious auto collision injuries – During the live stream reference was made to a bidding process for the ‘select few’ assessors who are held to higher standards, credible, independent and neutral. It is noteworthy that there is no mention of these being hospital based. We will hope and lobby for these assessors to have relevant rehab-related skills and knowledge. We are seeking clarification as to when in the claims’ life cycle these IEs will take place.
3. Cracking down on fraud by launching the province’s first Serious Fraud Office in spring 2018. The office will focus on auto insurance fraud, which has been identified as one of the factors contributing to higher premiums
4. Directing the Financial Services Commission of Ontario (FSCO) to review risk factors used by insurers to calculate premiums with the goal of ensuring drivers in certain parts of the province are not subject to unfairly high rates
5. Ensuring that lawyers’ contingency fees are fair, reasonable and more transparent

The province will establish a panel to guide the enactment of reforms contained in the Fair Auto Insurance Plan.

https://news.ontario.ca/mof/en/2017/12/ontarios-fair-auto-insurance-plan.html

We will continue to keep you posted as we learn more.