On June 1, 2016, many changes were made to the automobile insurance coverage of Ontarians.  These changes considerably reduce the benefits available to car accident victims.  If you already have an automobile insurance policy, the changes will become effective when you renew your insurance policy.

What Are Those Changes?

If you are injured in an incident where a car is involved, you should be entitled to accident benefits. These benefits are generally paid by your own car insurer.  They are often referred to as “No-Fault Benefits.” Regardless of whether you are responsible for the accident or not, you are entitled to accident benefits.  Depending on the extent of your injuries, these benefits cover your loss wages, treatment, prescribed medication, home modifications, assistance with your personal care and many other expenses incurred to facilitate your reintegration into your family and/or your work.

There are 3 categories of accident benefits: Minor Injury Guideline (“MIG”), the non-catastrophic injuries and the catastrophic injuries. The amount of benefits available increases from the MIG to the catastrophic injuries.

Before June 1, 2016 (or until the policy is renewed), a victim of non-catastrophic injuries had access to $50,000 for medical and rehabilitation treatments and $36,000 for attendant care, in addition to other benefits.  Attendant care is a service provided by an aide to assist with everyday living tasks that the injured person cannot perform themselves as a result of the accident.

As of June 1, 2016, the injured person will only have access to $65,000 for both medical and rehabilitation treatment and attendant care.  This is a $21,000 reduction which will certainly limit the level of assistance and treatment that an injured person can receive to aid in their recovery.  For most non-catastrophic injuries, $65,000 is simply not sufficient to get the treatment needed.

For victims of catastrophic injuries, the most serious of injuries, they had access to $1 million for medical and rehabilitation treatment and $1 million for attendant care.  As of June 1, 2016 (or when the policy is renewed), these 2 types of benefits are combined to a maximum of $1 million. This is half of the previous limit.  Again, this coverage is far from being sufficient to fund the services required by someone who suffered a spinal cord injury or a brain injury as a result of a car accident.

This drastic reduction in the accident benefits available to car accident victims will affect access to services that they desperately need to recover from their injuries and to reintegrate into their community following serious injuries.

What Are Optional Accident Benefits?

If you have an automobile insurance policy, you can purchase optional accident benefits.  Optional benefits will increase the amount of the accident benefits available to you in case you are injured in a car accident.  The cost of these optional benefits will vary based on the person, but it appears that for less than $100.00 per year, you can increase the medical and rehabilitation treatment and attendant care limit from $65,000 to $1 million. You can also increase the limit of other accident benefits.

The Financial Services Commission of Ontario has published information about optional accident benefits.  For more information, you can visit FSCO’s website.

You may want to contact your broker to find out more about optional benefits and to determine the level of benefits that you would require should you be injured in a car accident.

If you have been injured in a car accident, call Burn Tucker Lachaîne today to obtain information about your entitlement to accident benefis.  The first consultation is free of charge.