ACCIDENT BENEFITS

Following this change, certain benefits on your policy will now have lower limits.  For our clients, we will be maintaining on renewal the closest comparable benefits available in the new structure. However, it is important that all Ontario Auto policyholders take a few minutes to review the new schedule of optional benefits/increased limits and consider the potential need for changes to your policy.

In particular, we would call to your attention the changes related to the Medical Rehabilitation and Attendant Care Benefit. Prior to June 1^st, these were considered two separate benefits; one for Medical & Rehabilitation with a standard limit of $55,000 and another for Attendant Care with a standard limit of $36,000. These benefits have now been combined into one, with a single, lower standard limit of $65,000.  This limit is available to pay those expenses associated with medical, rehabilitation and attendant care costs if you or your passengers suffer non-catastrophic injuries in an auto accident. We recommend you consider purchasing increased limits, with up to $1,000,000 available in the new model.

Prior to June 1^st, each of the separate benefits also carried a $1,000,000 limit for catastrophic injuries. Following the merger into one benefit, there is now a single $1,000,000 limit for catastrophic injuries. We strongly recommend you consider purchasing the increased limits, raising this limit to $2,000,000.

We strongly recommend that you speak with your broker to understand these changes and to consider requesting these increased limits.

THIRD PARTY LIMITS:

With the reduction in Accident Benefits available to injured parties from their own automobile insurance policy, there is a growing reality that the injured party may now more readily sue the ‘at-fault’ driver for additional funds once their own accident benefits are exhausted.  We encourage you to consider the following to enhance your ability to respond to these legal actions:

• Increase the liability limits available under your Automobile Insurance policy and/or;
• Purchase a Personal Umbrella Liability policy, which expands coverage and increases limit of insurance.

Over the past several years, insurance companies have worked with the provincial government to reduce fraud and abuse of the benefits provided under the Ontario Automobile Insurance policy. As you have likely heard in the media, local organized crime and amateurs alike are fraudulently claiming over a billion dollars each year in accident benefits! The reduction in benefits has made little if any change to the Ontario Auto premiums. The Ontario government must make changes with respect to prevention, detection, enforcement and judicial enforcement in order to lower premiums and assist in the stabilizing of rates over the long term.

If you have any questions with respect to these changes, please do not hesitate to contact our office at (416) 234-9980 or at clientservices@cadeinsurance.com.

The post Coverage Reduced on Ontario Auto Policies appeared first on Cade Associates Insurance Brokers Limited.

These changes impact every auto policy in Ontario on their first renewal after June 1st, 2016. 

Accident Benefits are an important part of your insurance portfolio and should be carefully thought out by all auto insurance policyholders. While full details are available in the links below, we will be also be contacting you before your policy is affected by these changes in order to outline the specific impact on your policy and present options for your consideration.

DETAILS OF 2016 CHANGES TO AUTO INSURANCE POLICY

• 2015 Ontario Budget – Auto Reforms (Insurance Bureau of Canada)
• Amendments to Automobile Insurance Legislation and Regulations (Financial Securities Commission of Ontario)

Please keep an eye out for our mailing about these changes to your policy. If you have any questions in the meantime, please feel free to give us a call at (416) 234-9980.

The post Auto Policy Changes appeared first on Cade Associates Insurance Brokers Limited.

In order for a private passenger vehicle to carry passengers for a fee (eg. Taxis, UberX, etc.), current legislation requires that the vehicle be licensed appropriately for that use. This does not apply to typical carpooling, where a driver carries fellow employees to or from work for compensation in the normal course of their commute.

If your vehicle does not have a special license to carry passengers for compensation (other than carpooling), then doing so constitutes a use of the vehicle that is not considered legal under Ontario auto legislation. Auto insurance policies do not respond to ‘illegal’ use of a vehicle, therefore, until legislation offers a licensing alternative for UberX, personal auto insurance policies are unable to accommodate UberX operations. If a vehicle has a special license to carry passengers for hire, then the vehicle may be insured for this operation under a commercial auto insurance policy.

Uber has confirmed that they carry an insurance policy, but the exact protection it provides is not clear and Uber does not make the coverage wording available to the public. While commenting that their policy provides contingent coverage for claims of bodily injury or property damage to third parties, Ian Black, General Manager of Uber Toronto, states: “Your personal insurance is primary coverage when driving uberX.” As noted above, a personal auto insurance policy is not applicable to UberX drivers, presenting potential coverage gaps when the Uber policy is based on the operator’s insurance as primary coverage.

We cannot emphasize enough that the use of your personal vehicle for UberX activity may lead to serious financial distress should an accident occur. Because your personal automobile insurance policy will not respond, any costs associated with vehicle damage, injury to yourself or passengers, or injury or damage to the property of a third party will likely be entirely the responsibility of the UberX vehicle owner or driver.

Passengers of UberX vehicles should also be aware – if the automobile they enter does not carry appropriate insurance, it is unclear what Accident Benefits coverage they can call upon if they are injured in the vehicle.

Despite its controversy, UberX and comparable services are here to stay. At least one major Insurer has already committed to working with Uber to create coverage to meet the needs of its drivers. However, until the government provides clarity with respect to licensing and insurance, please do not operate your vehicle as an UberX driver.
Fore more, click here for a notice from FSCO

The post UberX and Ridesharing appeared first on Cade Associates Insurance Brokers Limited.

1. Combination of Medical/Rehab and Attendant Care Benefit Limits
   1. The maximum benefit level for medical/rehabilitation and attendant care services has been combined with a $65,000 limit. Previously, limits were $50,000 for medical/rehabilitation and $36,000 for attendant care. While this combined $65,000 limit represents a reduction in the overall limit, it remains the richest accident benefits product in Canada.
   2. Policyholders will have the option to upgrade these benefits, up to a total limit of $1,000,000.
2. Reducing the Maximum Duration of Medical & Rehabilitation Benefits from 10 years to 5 years
   1. A five year limit will apply to all medical & rehabilitation benefits with the exception of children claimants, who will have 10 years.
   2. This five year limit remains longer than the claim duration available in other provinces.
   3. Policyholders will have the option to increase this coverage.
3. Catastrophic Injury Definition Update and Change to Catastrophic Benefit Limits
   1. Updating the definition of a ‘catastrophic impairment’, which triggers a new maximum limit of $1,000,0000 for Medical/Rehabilitation and Attendant Care services. Previously, the limit was $1M for Medical/Rehab and $1M for Attendant Care.
   2. The government’s expert panel and the Superintendent of Insurance sought to change the definition to reflect updated medical knowledge and to provide a clear definition to apply in the case of serious injuries. In recent years, an unclear definition allowed many less serious injuries to be designated catastrophic, triggering these high benefit payouts and increasing the overall cost of auto insurance for all users.
   3. Policyholders will have the option of increasing their catastrophic benefit limit from $1,000,000 to $2,000,000.
4. Non-Earner Benefits
   1. The current six-month waiting period for non-earner benefits will be eliminated, with the duration of these benefits being limited to two years from the date of the accident.

There are other changes to the Ontario Auto product arising out of this budget, including the introduction of a “Winter Tire” discount in January 2016 for all Insurers. As more details on the premium implications of the optional benefits above and other changes to the policy become available, we will keep you informed.

For more details, visit:

• 2015 Ontario Budget – Auto Reforms (Insurance Bureau of Canada)
• Amendments to Automobile Insurance Legislation and Regulations (Financial Securities Commission of Ontario)

The post Changes to Ontario Auto Insurance appeared first on Cade Associates Insurance Brokers Limited.