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Lack of Knowledge About Auto Insurance Continues to Hurt Ontario Drivers

An annual survey on Ontario Auto Insurance reveals that Ontario drivers are becoming slightly more aware of optional coverage, but drivers continue to be insufficiently protected particularly when it comes to medical benefits and income replacement benefits.

Link to the article on Exchange Magazine:

The third annual survey from Deutschmann Law looked at optional coverage, the deductible for general damages and included questions regarding close calls, auto safety features and roundabouts.

The survey reveals that 10 years after the introduction of optional benefit coverage, 30% of drivers are still unaware of the opportunity to purchase optional coverage. This has increased from 25% of drivers in 2017.

In 2010 accident victims had their medical and rehab benefits reduced from the basic coverage of $100,000.00 for everyone, to $3,500.00 for almost 80% of accident victims with the option to purchase additional coverage for medical and income benefits.

While people are aware of the availability of optional coverage, only 8% have purchased additional coverage. Of those, increased liability coverage was the most popular (71%) followed by increased medical coverage (50%) and then increased weekly income benefits (16%).

Though 75% of people were aware of a deductible that applies for property damage, only 52% were aware of a deductible for pain and suffering damages. The deductible is currently $38,818.97. However only 10% of those surveyed felt that the deductible is over $10,000.00. That means that where an injured party is awarded $50,000.00 for pain and suffering then the at fault insurer will only have to pay $11,181.03.

Only 25% of respondents feel there should be a deductible for pain and suffering damages.

The deductible for pain and suffering damages increases by the CPI rate annually, further eroding damages payable to innocent victims. Contrast that to rate payable by the insurer for income benefits (maximum $400.00 weekly) which has stayed stable since 1990, unless optional coverage is purchased.

“Our third annual survey shows that consumers in Ontario are not sufficiently informed about auto insurance including the availability of enhanced medical and income benefits and the erosion of damages when they are involved in an accident. There needs to be better education so consumers can make more informed decisions about their insurance and avoid becoming a victim twice – at the time of the accident and then realizing how their benefits do not sufficiently deal with their needs,” says Rob Deutschmann.
For those respondents that have been involved in a “close call” while driving, 87% identified that there was another vehicle involved and 11% with a bicycle or pedestrian. 45% identified speed as the biggest cause while 38% identified distracted driving and 25% identified improper turns.

The independent survey, conducted in September 2019, was administered by Metroline Research Group on behalf of Deutschmann Law. Over 800 Ontario licensed drivers between the age of 18 -74 participated. All were identified as decision-makers regarding their auto insurance policy.

ORA Response to FSRA Priorities

On behalf of the Ontario Rehab Alliance I am pleased to have an opportunity to respond to FSRA’s published Priorities and Budget.

Six Months In

The ORA commends FSRA for the Stakeholder Engagement efforts it’s made since its inception.

  • Striking the ad hoc Industry Advisory Group (IAG) of Health Service Providers to provide input to Fee Rule decision making. As a participant, the ORA was impressed with the degree of transparency, information sharing and interest in learning more about the HSP sector.
  • Establishing the Stakeholder Advisory (SAC) Committee for HSPs. We have several comments with respect to this:
    • Timeframes within which the SAC has been asked to frame comments have been very constrained, making it difficult for association representatives to properly accommodate their own governance processes (consulting with members and Board’s). More time between meetings with FSRA management and its Board would also enhance the capacity of SAC members to discuss and develop clarity on points of convergence and divergence and therefore offer FSRA enriched feedback.
    • SAC members and their deliberations would benefit from access to more data about the sector, such as proportion of HSPs with Regulated Health Professional (RHP) ownership, breakdown by RHP and other relevant factors.

The ORA has kept its members up to date on the transition from FSCO, however many HSPs who do not belong to this or other active associations, are unaware of the transition to a new regulator.

We also commend FSRA for early efforts in Burden Reduction.

  • The Draft version of the 2020 Annual Information Return shared with association representatives will be considerably less burdensome to complete.

2019/2020 Priorities

Supporting Auto Insurance Reform

The ORA was pleased to participate in Auto Insurance Reform consultations this summer and early fall. We are keenly interested to learn more about the intended policy directions government is heading in and stay involved on issues of greatest significance to Health Service Providers, such as:

  • Increased optionality and the potential impact on mandatory accident benefit levels and consumer risk of being inadequately insured if seriously injured
  • Reducing HSP fees which would reduce access to treatment as HSPs will continue to leave the sector
  • Compromising consumer choice by expansion of preferred provider arrangements
  • Accountability mechanisms to fair and effective insurer claims management practices, particularly as FSRA moves towards a principles-based approach

In addition to the legislatively established Auto Insurance system, consumers, claimants and HSPs are also impacted by a parallel reality of ‘ghost’ regulations created by patterns of insurer practices that can create obstacles to access for consumers/claimants and considerable costs for HSPs. For instance, our members report an increase in the frequency of non-payment for approved and delivered services; the reason given by insurers is the exhaustion of med/rehab benefits. Insurers are mandated to manage and dispense these funds, yet they are not held accountable for not doing so, and HSPs have no regulatory means by which to hold them accountable.

Similarly, the impact and importance of LAT decisions must be taken into consideration. Though not intended to be precedent-setting, LAT decisions in favour of any one insurer are quickly acted upon by others. Conversely, LAT decisions in favor of HSP (e.g.  psychotherapist rates) are not generally adopted by insurers.

Developing Fraud & Abuse Strategy

Data shared at the Ministry of Finance’s Cost Reduction Working Group this fall shows that while the average Accident Benefits Claim cost has been decreasing the past few years, costs related to property damage are increasing. We therefore suggest that fraud and abuse strategies focus the areas of rising costs, such as:

  • Towing and storage
  • Repairs and rentals

The ORA would like to see the elimination of the double standard that continues to question costs associated with human body repair while the corresponding costs on the auto body side are not similarly examined.

Reviewing HSP Regulation

HSP Licensing through FSCO, when implemented in 2014, was to be a cornerstone of fraud reduction efforts on the accident benefits med-rehab side, yet efficacy to date has not been fully established.

We strongly encourage FSRA to establish one or more task specific (as opposed to standing) technical committees to assist with various aspects of the review such as: degrees of regulatory oversight for various classes of HSP, governance distillation and distribution to HSPs, transition and transformation of HCAI, etc..

2020/21 Priorities

4.1           Empower & Protect Insurance Consumers

With respect to auto insurance, we urge FSRA to consider that consumers at point-of-policy- purchase become claimants when they are injured. Empowering consumers if translated to mean increased optionality of Accident Benefits must then also mean educating them sufficiently on the possibility of injury and associated costs so that they are sufficiently protected if injured. The costs of not doing so will be evident in the hallways of hospitals and the demands on strained health and social services.

4.3          Develop a Comprehensive Auto Insurance and Data Analytics Strategy

We support the transition of HCAI to the regulator and its transformation to a system better designed to support users, the regulator, and policy makers.

We urge FSRA to strike one or more stakeholder technical committees to establish useful, functional outcome measures and metrics to shape data gathering activities, tools and analytics to support a principles-based approach to regulation and service delivery standards.

4.2 Support and Implement Auto Reform

See comments under 2019/20 Priorities, above.

2020/21 Budget

HSP licensing fees should be held at the current levels until burden reduction strategies for the HSP regulatory regime have been fully developed and implemented, so that associated costs for a presumably leaner and lighter regulatory regime can be properly established.

Other Comments

The Ontario Rehab Alliance wishes to play a key role in assisting the government to reduce hallway medicine. Our members are primarily small and medium sized businesses located throughout the province, with a focus on the treatment of serious injuries. Our work across the healthcare continuum gives us a wide-angle lens and a capacity to drill down into an understanding of the role that accessible and appropriate rehabilitation services play in keeping Ontarians and their healthcare systems at optimally functional levels.

Laurie Davis, Executive Director

Fall Economic Statement Falls Back & Good News re FSRA’s SAC

Dear members,

The Ford Government’s Fall Economic Statement makes clear intentions to continue its Auto Insurance Reform agenda by potentially altering mandatory coverages. While last spring’s Budget suggested there wouldn’t be tinkering with current AB levels it now seems tinkering may be the form of “increased choice” as we heard discussed in consultations over the past months.  The previous government slashed away at AB limits and we’d hope these days were behind us. As hope is not enough, we will continue to advocate to ensure that greater flexibility of coverage doesn’t compromise the needs of the seriously injured. I’ve extracted from the full statement [link] the key points for Health Service Providers, below. Italics are mine. Action to reduce system costs that drive up auto insurance premiums for drivers, includes:

  • Increasing consumer choice by allowing drivers to decide for themselves what coverage they need;
  • Enhancing competition by supporting innovation and reducing barriers for new and existing companies to compete in Ontario; and
  • Fighting fraud and taking costs out of the system by working with the Financial Services Regulatory Authority of Ontario (FSRA) to prevent bad actors in the system, replace inefficient processes and reduce fees

The good news is that we continue to be invited to consult. I am very pleased to have been selected to join FSRA’s Health Service Providers Stakeholder Advisory Committee. We meet with FRSA Management this coming Tuesday.Back at the ORA ranch we are working on HSP rates data and strategy and I will be reaching out shortly to the members who will be supporting our work on non-regulated rates.

Laurie Davis, Executive Director

Healthcare Providers Respond to Auto Reform Announcements with Cautious Optimism

Downloadable PDF: Media Release – Heathcare Providers Cautiously Optimistic About Auto Reform

April 15, 2019

Healthcare Providers Respond to Auto Reform Announcements with Cautious Optimism

The Ontario Rehab Alliance (ORA), representing healthcare providers in the auto sector, sees much to applaud in the blueprint to improve the province’s auto insurance system presented in the 2019 Budget.

“On behalf of our seriously injured clients we are thrilled with the return to the higher level of coverage for catastrophic injuries and relieved that this government has protected other accident benefits after years of cuts”, says Laurie Davis, Executive Director of the ORA.

The ORA is fully supportive of the blueprint’s plan to reduce the regulatory burden on health providers, improve the Independent Medical Examination process and minimize red tape and other obstacles that delay treatment of serious injuries.

The ORA has been advocating for a number of these reforms in their discussions with government over the past months.

“Consumers need to know that they will get the support and treatment they need when they are injured. The right reforms can replace obstacles to care with proactive treatment, retain appropriate checks and balances and reduce disputes without increasing costs. This blueprint suggests we may be heading in the right direction,” says Ms. Davis.

The ORA is concerned about the announced intention to lower fees paid to healthcare providers treating accident victims. The association represents primarily small to medium sized providers across the province. Many are already struggling to compete for staff in the labour-short healthcare sector, particularly given the hourly rate freeze in effect since 2012 in the auto sector.

The healthcare association is also concerned about unintended consequences of encouraging claimants to be treated within the insurer’s Preferred Provider Network and restricting settlement of the medical-rehabilitation benefit. The ORA is worried that such changes could lead to disproportionate power in the hands of insurers while leaving claimants without recourse or independent oversight to ensure that they are treated fairly.

The association is cautiously optimistic that it can have productive discussions about its concerns and the potentially dire consequences given this government’s Open for Business focus and looks forward to working with government, insurers and other stakeholders on continuing improvements to the auto insurance system.

Media contact: Laurie Davis at [email protected] , the telephone numbers above in letterhead or directly at (705) 957-4733.

It’s budget day tomorrow and we’re hoping for change

Colm Holmes is president and CEO of Aviva Canada.

“More choice and a greater range of options should be available for consumers when they are buying auto insurance.”

Good News re: HST & AB

Ontario ministry issues guidance on paying HST on accident benefits

March 27, 2019   by Jason Contant

Ontario ministry issues guidance on paying HST on accident benefits

Needed: therapists, managers, and coordinators in the field of Traumatic Brain Injury in Ontario

Dear Members

I am Sareh Zarshenas, post-doctoral fellow, working under the supervision of Dr. Carolina Bottari at the University of Montreal and with Dr. Deirdre Dawson at the Rotman Research Institute, Baycrest. We are working on the project entitled

smart home technology as a platform to implement cognitive interventions to facilitate safety and independence within the homes of individuals with traumatic brain injury: first steps towards a multi-site trial in Ontario”.

This project is funded by the Canadian Trauma Research Consortium and the ONF-REPAR and has received ethics approval from the REB at Baycrest.

We are looking for experienced occupational therapists, physical therapists, speech language pathologists, psychologists, personal support workers, behavioral therapists, occupational/ physical therapy assistants, managers/coordinators, and funders who have experience working with TBI patients in outpatient rehabilitation facilities as well as community settings to participate in a focus group or a personal interview.

Participants will receive $70

Please find attached below, more information on this project and do not hesitate to share this email with your colleagues.

Invitation letter smart home project


Potential participants please contact Sareh Zarshenas at  [email protected] If you have any questions about this project, please contact Dr. Dawson at [email protected]

Thank you so much for your consideration,


BSc., MSc., OT Reg. (Ont.), PhD.

Post-Doctoral Fellow,

University of Montreal, Faculty of Medicine

Centre for Interdisciplinary Research

in Rehabilitation of Greater Montreal (CRIR)

Office address: Department of Occupational Science

&Occupational Therapy, University of Toronto,

500 University Ave, Toronto, ON.

Your postal code is a big factor in determining your car insurance rates. Critics say it shouldn’t be- Patty Winsa


NEWS 05:50 AM by Patty Winsa Toronto Star

“When Pankaj Sallh and his family moved to Brampton from Mississauga last year, he had no idea that changing his postal code would be so costly.

The relocation resulted in a nearly 50 per cent increase in his car insurance with the same company, from $237 to $350 a month for two vehicles.

“To me, it’s unexplainable,” says Sallh. The 44-year-old engineer and his wife support two small children, as well as his parents and father-in-law. “Why should I pay more just because of the change of address?”


Read the whole article at the link below:

ORA’s Auto Insurance Reform Submission

Dear members

Below is our just-posted Auto Insurance Reform submission. It certainly was challenging to stick to the 500 word limit when there’s so much to say. However, we do expect to have opportunities to say more in person to policy makers in the coming weeks and months. We also had a very interesting meeting with FSRA’s Board of Directors recently and I’ll share more about that soon.

ORA Auto Insurance Reform Submission PDF

Raise auto accident benefits: Ontario politician

Singh said he plans to “work with stakeholders involved to determine that specific number and find out where we need to go to make sure that every single Ontarian has the protections they need if they get into an accident”  View full article here

October 31, 2018   by Greg Meckbach

Gurratan Singh is the brother of federal NDP leader Jagmeet Singh. He is the current MPP representing Brampton East with a Parliamentary role in critiquing Auto Insurance. Further details to his political career can be found here