2016 Automobile Insurance Legislated and Regulatory Adjustments and Optional Indexation Rates Under the Statutory Accident Benefit Schedule

Bulletin

No. A-10/15

Property & Casualty

– Auto

To the attention of all insurance companies licensed to transact automobile insurance in Ontario

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With this bulletin, the Financial Services Commission of Ontario (FSCO) is releasing:

the 2016 monetary thresholds and deductibles for determining non-pecuniary tort awards under the Insurance Act and O. Reg. 461/96, Court Proceedings For Automobile Accidents That Occur On Or After November 1, 1996
the 2016 indexation percentage for the Optional Indexation Benefit under section 30 of the Statutory Accident Benefits Schedule – Effective September 1, 2010,
the 2016 indexation percentage for the Optional Indexation Benefit under section 29 of the Statutory Accident Benefits Schedule – Accidents on or after November 1, 1996 (Bill 59 SABS), and
the 2016 indexation percentage and revised deductibles/monetary amounts applicable to claims under the Statutory Accident Benefits Schedule – Accidents after December 31, 1993 and before November 1, 1996 (Bill 164 SABS).

In accordance with sections, 268.1 (1) and 268.1 (3) of the Insurance Act (Act), the indexation percentage and revised deductibles/monetary amounts applicable to the Bill 164 SABS will appear in a forthcoming edition of The Ontario Gazette. Section 267.5 (8.5) of the Act also requires the publication in the Ontario Gazette of the revised monetary thresholds for the application of the tort deductible before the 1st of January.

The indexation percentage for adjusting the monetary thresholds and deductibles, and the amounts under the Statutory Accident Benefits Schedule – Effective September 1, 2010, Bill 59 SABS and Bill 164 SABS reflects the year-over-year "Consumer Price Index for Canada (All Items)" from September 2014 to September 2015, as published by Statistics Canada.

Revised Monetary Thresholds and Deductibles for Non-Pecuniary Tort Awards

The monetary threshold beyond which the deductible amount does not apply is adjusted from $121,799 to $123,016.99, in the case of damages for non-pecuniary loss from January 1, 2016 until December 31, 2016.

The monetary threshold beyond which the deductible amount does not apply is adjusted from $60,899 to $61,507.99, in the case of damages for non-pecuniary loss under clause 61 (2) (e) of the Family Law Act from January 1, 2016 until December 31, 2016.

The deductible for non-pecuniary loss when a tort award does not exceed the monetary threshold is adjusted from $36,540 to $36,905.40, in the case of damages from January 1, 2016 until December 31, 2016.

The deductible for non-pecuniary loss when a tort award under clause 61 (2) (e) of the Family Law Act does not exceed the monetary threshold is adjusted from $18,270 to $18,452.70, in the case of damages from January 1, 2016 until December 31, 2016.

Indexation Under the Statutory Accident Benefits Schedule – Effective
September 1, 2010

The 2016 indexation percentage is 1.0 per cent. It is applied in accordance with the Optional Indexation Benefit Guideline. The indexation applies to named insureds, spouses of named insureds, dependants of any of these and specified drivers, if the optional indexation benefit was purchased.

The 2016 indexation percentage applies to benefits that are required to be indexed pursuant to section 30 of the Statutory Accident Benefits Schedule – Effective September 1, 2010 in respect of insured persons who were involved in accidents on or after September 1, 2010.

Indexation Under the Bill 59 SABS

The 2016 indexation percentage is 1.0 per cent. It is applied in accordance with the Optional Indexation Benefit Guideline. Under the Bill 59 SABS, indexation applies to named insureds, spouses of named insureds, dependants of any of these and specified drivers, if the optional indexation benefit was purchased.

The 2016 indexation percentage applies to benefits that are required to be indexed pursuant to section 29 of the Bill 59 SABS in respect of insured persons who were involved in accidents on or after November 1, 1996 and before September 1, 2010.

Indexation Under Bill 164 SABS

The 2016 indexation percentage is 1.0 per cent. It applies to monetary amounts that are required to be raised pursuant to section 80 of the Bill 164 SABS, in respect of insured persons who were involved in accidents after December 31, 1993 and before November 1, 1996.

The 2016 indexation percentage, the revised deductibles and monetary amounts are listed on the enclosed chart, entitled 2016 Indexation Percentage, Revised Deductibles and Monetary Amounts for Automobile Insurance under the Insurance Act and Statutory Accident Benefits Schedule – Accidents after December 31, 1993 and before November 1, 1996.

Also note that certain indexed amounts under the Bill 164 SABS have been identified in the indexation schedule as possibly no longer being relevant in certain cases. Please refer to the relevant provisions in the Bill 164 SABS to determine if these indexed amounts apply to your situation.

Brian Mills
Chief Executive Officer and
Superintendent of Financial Services

December 16, 2015