You Are Here: Home » Advice » Car Accident Injury Benefits are changing again

Car Accident Injury Benefits are changing again

While I have been knee-deep in the industry as a personal injury lawyer who frequently deals with car accident injury lawsuits for many years, it seems that the changes that are being made to car accident victims’ benefits are almost at a rapid fire pace over the last few years.

A new round of benefit changes, effective June 1, 2016 will make further changes to the Standard Auto Insurance policy and the benefits available should the person be injured.  These changes only apply to auto insurance policies issued or renewed on or after June 1, 2016.

The changes will lower the standard benefits available to policyholders (lowering the already lowered benefit levels from the last round of changes).  The changes will also significantly reduce the length of time that someone has to apply for medical benefits after a car accident injury.  Policyholders will have the option to increase their benefit amounts if they pay an extra premium.  To increase the limits the policyholder must purchase the increased insurance from their representative.

Some of the new benefit changes are summarized as follows:

Benefit Current Policy New Policy Optional
Medical and Rehabilitation for non-catastrophic injuries $50,000 These benefits have been combined and reduced to $65,000 total Increase the benefitto $130,000 total
Attendant Care for non-catastrophic injuries $36,000
Medical and Rehabilitation for catastrophic injuries $1,000,000 These benefits have been combined and reduced to $1,000,000 total An additional $1,000,000for a total of $2,000,0002 for catastrophic injuries
Attendant Care for catastrophic injuries $1,000,000
Medical, Rehabilitation and Attendant Care, all injuries Not applicable Not applicable Increase the combined non-catastrophic benefit to $1,000,000 and the combined catastrophic benefit total to $2,000,0002,[3]

Some of the other important changes are as follows: 

Minor Accident Insurer can no longer use a minor at-fault accident meeting certain criteria to increase your premiums. This applies to accidents occurring on or after June 1, 2016.
Interest Rate for Monthly Payment Plans   Maximum that can be charged for monthly premium payments has been lowered from 3% to 1.3% for one year policies, with corresponding reductions for shorter terms.
Comprehensive Deductible The standard deductible for Comprehensive coverage has been increased from $300 to $500.
Non-Earner benefit The six-month waiting period for people who are not working has been reduced to four weeks. Benefits can only be received for up to two years after the accident.
Duration of Medical, Rehabilitation and Attendant Care benefits For all claimants except children, duration of this standard benefit is now five years for non-catastrophic injuries, and will be paid only as long as you remain medically eligible.

Some of the other available options are as follows:

Benefit/Coverage Current Policy New Policy You can choose
Income Replacement benefit 70 per cent of gross income up to $400 per week. No change To increase the weekly limit to $600, $800 or $1,000 per week.
Caregiver benefit Available only for catastrophic injuries: Up to $250 per week for the first dependant plus $50 for each additional dependant. No change To make the same amounts available in current policy for catastrophic injuries available for all injuries.
Housekeeping and Home Maintenance expenses Available only for catastrophic injuries: Up to $100 per week. No change To make the same amounts available in current policy for catastrophic injuries available for all injuries.
Death and Funeral benefits $25,000 lump sum to an eligible spouse; $10,000 lump sum to each dependant; maximum $6,000 funeral benefits. No change $50,000 lump sum to an eligible spouse; $20,000 lump sum to each dependant; maximum $8,000 funeral benefits.
Dependant Care benefit Not provided Not provided Up to $75 per week for the first dependant and $25 per week for each additional dependant to a maximum of $150 per week.
Indexation benefit Not provided Not provided Annual adjustment for inflation for many benefits according to the Consumer Price Index for Canada.
Third Party Liability $200,000 minimum for claims as a result of lawsuits against you. No change Options exist to increase the minimum amount.
Tort Deductible $36,905.40 deductible for court awarded compensation for pain and suffering (Jan 1-Dec 31, 2016). No change Reduce deductible by $10,000 regardless of annual indexation percentage increases.

About The Author

Personal Injury Lawyer-Whitby

Steven Polak is a personal injury lawyer in Whitby, Durham and Toronto Ontario who works as part of the team of over 100 lawyers at Lerners LLP, he assists injury and disability victims with motor vehicle accident lawsuits, accident benefits cases, disability benefit denial cases, slip and falls, and other injury claims.

Number of Entries : 92

Leave a Comment

You must be logged in to post a comment.

Sitemap | | © 2017 Ontario Injury Law

Scroll to top