The Ontario Government has revoked the amendments outlined in Ontario Regulation 380/03 (previously filed on September 18, 2003) that would have reduced the basic income replacement benefit limit under the Statutory Accident Benefits Schedule - Accidents on or after November 1, 1996 (SABS) from $400 per week to $300 per week effective for policies issued or renewed on or after January 1, 2004. Insurers will also not be required to offer an additional optional income replacement benefit with a limit of $400 per week.
As a result of the revocation of these pending amendments, the limit for basic income replacement benefits will continue at the current level of $400 per week for policies issued or renewed on or after January 1, 2004. The current requirements to offer optional income replacement benefits with limits of $600, $800, and $1,000 per week remain in effect.
Insurance companies should ensure that communications with their policyholders convey the applicable level of income replacement benefits.
Copy of the Regulation
These changes are outlined in Ontario Regulation 394/03 which can be found at
www.e-laws.gov.on.ca and is expected be published in the November 22, 2003 edition of The Ontario Gazette.
Bryan P. Davies
Chief Executive Officer and
Superintendent of Financial Services
November 7, 2003